2023 Best Savings Account Interest Rates (Updated)

Savings Account Interest Rates
image source: CNBC

Although it serves as a baseline for the general interest rate environment, the average savings account rate is not one that you should accept. Instead, strive for annual percentage yields (APYs) that are significantly higher than the US average, like those provided by high-yield savings accounts. Finding a high-yield savings account with a low or no minimum balance requirement and a competitive return is simple. We will be looking at the best savings account interest rates and the calculator for determining them.


In some institutions, you can increase your interest by connecting your savings account with a checking account. These are also known as relationship rates, and physical banks are more likely to give them. Online banks are frequently a preferable option for people trying to get the greatest APY due to the combination of big sums of money to avoid monthly fees and lower APYs from brick-and-mortar banks. Online banks often give greater APYs for all balances, while some of them have minimum balance requirements. The majority of online banks have $100 or lower minimum opening requirements.

Do the Best Savings Account Interest Rates Change Over Time?

Absolutely, rates are erratic and subject to fluctuation. Consider obtaining a certificate of deposit if you want a fixed-rate account and can lay money down for a defined amount of time without taking it out. The greatest CD rates are featured on NerdWallet’s list.

When do Interest Rates Vary?

Savings rates at financial institutions often don’t alter hourly, daily, or even monthly. In fact, it’s typical for APYs to stay the same for several months under normal circumstances.

Yet, it’s crucial to remember that rates are flexible and might theoretically alter at any time. Also, a lot of providers will alter their prices in response to what their rivals are doing. Particularly if the Federal Reserve just increased or decreased rates, you will frequently see groups of providers change their APYs at roughly the same time. At least once a month, it’s a good idea to compare the best savings rates to ensure you’re getting the most return on your money.

Why Should I Care About the Best savings Account Rates?

You should have a high-interest savings account if you consistently have money in your checking account or if you can change your spending plan to do so. (Again, consider 3%.) Having money set aside for emergencies is always a good idea, and doing so in a savings account that offers one of the top interest rates will yield considerably higher returns than doing so in a checking account. To avoid monthly fees, just make sure you can maintain a sufficient balance in your savings account. While many traditional accounts impose them, the majority of internet savings accounts do not.

Best Savings Account Interest Rates 

Talking about the best savings account interest rates:

#1. UFB Preferred Savings

With an APY of up to 5.02% and no cap, the UFB Premium Savings account has one of the highest interest rates on the market right now. All balance tiers currently earn this 5.02% APY, despite the fact that UFB Direct specifies that this is a tiered savings rate. Savings can be made with as little as a $1 deposit and still earn a high APR because this account has no minimum deposit requirements. Axos Bank’s online division is called UFB Direct.

If you’re already a customer of UFB, you should be aware that the bank occasionally modifies the names of its savings accounts when it increases the APY and does not register current customers immediately into the new account. Customers should get in touch with the bank to confirm that they are signed up for the account with the best APY whenever UFB increases the APY on a particular account.

#2. Varo Savings Account

It is not necessary to maintain a minimum balance in order to receive the normal 3% APR that Varo savers receive on any subsequent balances over $5,000. A fully mobile national bank, Varo Bank includes Varo Savings. Users of Varo Savings Accounts who fulfill the following two criteria will be eligible to receive 5% APY on balances up to $5,000:

  • Receiving monthly direct installments of $1,000 or more
  • Having both the Varo Bank Account and the Varo Savings Account balances at the end of the month is positive

If savers increase their maximum balance to $5,000, they will receive $250 in interest each year.

#3. Mango Savings

In order to open a Mango Savings account and earn up to 6% APY on balances up to $2,500, cardholders of the Mango Prepaid Mastercard® (provided by Metropolitan Commercial Bank) must fulfill the following two conditions:

  • Make a $25 minimum deposit, and at the end of the month, have that amount in your account.
  • Use your Mango Prepaid Mastercard to make monthly signature transactions totaling at least $1,500.

Savings accounts with a maximum value of $2,500 will receive $150 in interest per year. After that, the APR drops to a low 0.10% for amounts beyond $2,500, at which point we advise moving any additional funds to a high-yielding bank account.

#4. Western Alliance Bank Savings Account

Opening an account with the Western Alliance Bank Savings Account costs just $1 and gives an APY of 4.55%. The 4.55% APY has no earning limit. Savings accounts are opened and managed on the SaveBetter.com platform because Western Alliance Bank’s savings products are powered by SaveBetter.

#5. CFG Bank High Yield Money Market Account

Despite the fact that the CFG Bank High Yield Money Market Account has “money market” in its name, it doesn’t provide any of the customary bells and whistles found with a typical money markets account, such as check-writing rights, debit cards, and ATM access; instead, it works like a savings account.

In order to open a CFG Bank High Yield Account and receive the 4.80% APY, a $1,000 minimum deposit is needed. While having a larger minimum than some of the other options on this list, this one ultimately benefits the saver because interest earnings increase with balance size. Savings accounts can make as many deposits as they like and still earn the maximum APY of 4.80% because there is no cap on that rate.

Savings Account Interest Calculator

You can easily calculate the interest you can earn each month on the balance of your savings account using a calculator for savings account interest rates. Using variables like your savings account balance and the bank interest rate, the savings account interest calculator can calculate how much interest you can receive on your balance.

How to use a Savings Account Interest Calculator?

A convenient and simple tool to determine the interest you can receive on your savings account balance is the savings account interest calculator. To determine the interest you can receive on your savings account, you must input the balance. The calculator can rapidly determine how much interest you may earn on your savings account balance using the input.

How to Calculate Interest on a Savings Account?

You can find out how much interest you may receive on your savings account balance using the calculator for savings account interest rates. You must enter data into the calculator, such as the balance of your savings account and the interest rate offered by the bank. Using the data, the calculator calculates the potential return on your savings balance.

How do Banks Calculate the Interest on Savings Accounts?

The daily balances are used to compute the interest rates. Depending on the bank’s policy, the total interest earned is credited to the savings account either monthly or quarterly. But, you may compare how your funds will grow with our savings account interest calculator, based on whether or not you make subsequent deposits after your initial savings deposit.

How To Use This Savings Calculator

Get the data you’ll need to enter together to make the most of this compound savings calculator. Starting with as few as three values is possible:

  • Beginning sum: the sum of money you will put down initially.
  • How long do you intend to save this money?
  • The annual percentage yield (APY) you will receive is the rate of return.

Although high-yield savings are often mentioned in the marketplace, many of the finest online savings accounts pay somewhere in the vicinity of 0.50% APY in today’s low-interest rate climate.

#1. Making a Single Deposit

Start with a $5,000 deposit for this example, earning 0.50% APY over a ten-year period.

The default setting for the calculator’s interest compounding frequency is once a year. Your money grows quicker in a savings account because of the daily or monthly compounding frequency. These specifics should be verified with your bank or credit union.

#2. Making Regular Additional Deposits

Add the following three values to demonstrate how your savings can increase when you make regular additions to them:

  • Other contributions: How much you’ll consistently put toward your savings
  • How frequently will you add it? 
  • How often does your interest compound? 

Now add in that you’ll obediently make a $100 monthly contribution over the same $5,000 initial deposit, 10-year savings period, and 0.50% annual percentage yield.

Which Bank Gives 7% Interest on Savings Account? 

Interest rates range from 6% to 7% at Unity Small Finance Bank for different amounts. Unity Bank offers 7% annual interest on savings accounts for deposits over Rs 1 lakh and 6% annual interest on deposits under Rs 1 lakh.

How Much Interest Will I Get On $1000 a Year in a Savings Account? 

You’ll get more interest if you can save a larger sum of money. If you put away $1,000 for a year at 0.01% APY, you’ll have $1,000.10. The same $1,000 may earn approximately $5 after a year if you deposit it in a high-yield savings account.

Where Can I Get 5% Interest on My Money? 

Best Savings Accounts with 5% Interest:

  • Digital Federal Credit Union
  • Blue Federal Credit Union
  • Mango Money
  • UFB Direct
  • Varo
  • Landmark Credit Union
  • Current
  • NetSpend

What Is a Good Interest Rate for a Savings Account? 

According to Bankrate’s 15th of March weekly survey of institutions, the national average yield for savings accounts is 0.23 percent APY. Savings rates at several online banks are greater than the national average.

Which Bank Is Best for Savings? 

The finest savings account interest rates are listed here.

  • Citibank 
  • Barclays Bank
  • Discover Bank
  • Marcus by Goldman Sachs 
  • Ally Bank
  • Capital One

Which Bank Gives Highest Interest?

Under the Cent Garima Deposit Scheme, the Central Bank of India offers the highest FD rate among the scheduled public sector banks, up to 7.55% p.a. for a 777-day term. Elderly adults (60 years of age and over) are eligible for fixed deposit rates up to 9.50% per year.


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