HIGH YIELD SAVING ACCOUNT: 2023’s Best Savings Accounts (Updated)

high yield saving account
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Everyone will require an emergency fund at some point, whether they are currently financially secure or are working-class individuals trying to make ends meet. A high yield saving account, on the other hand, is a promising alternative to explore when it comes to building an emergency fund or saving money for other financial goals. A high yield saving account can help you grow your money faster than regular savings accounts with its highest interest rates, while also accelerating your progress toward your goals. We understand that the majority of consumers might be unfamiliar with the distinction between high-yield and standard savings accounts. As a result, we’ve looked into high yield savings accounts with the best rates and a bonus, American Express savings accounts, and credit unions, to find the best rates and options in 2023.

What is a High-Yield Savings Account?

A high yield saving account is a type of savings account that generally offers 20 to 25x the national average interest rates of traditional savings accounts. The annual percentage yield (APY) on high-yield savings accounts is often substantially greater compared to ordinary savings accounts. This however gives investors the opportunity to earn more on their money while still having their assets federally guaranteed.  

On the contrary, savings accounts have generally been held at the same financial institution as checking accounts. Thus, it makes the process of transferring money between the two much simpler. As a result, a new category of “high-yield savings accounts” has emerged due to the rise of internet-only banks and traditional banks that have expanded their doors to people across the country via online account opening.

Explicitly, high-yield savings accounts with introductory rates may be limited in time by some banks. These accounts, on the other hand, may be hard to come by in the current low-rate climate. Nevertheless, because variable annual percentage yields (APY) are common in high-yield savings accounts, No-penalty CDs may be a viable alternative for consumers. These however are for consumers searching for both a fixed APY and the ability to withdraw their money without incurring a penalty.

Understanding High Yield Savings Account

A high-yield savings account can help you earn more money than a regular savings account can. The annual percentage yield (APY) on savings accounts is an average of 0.06 percent on a nationwide level. However, that’s on the average as there are savings accounts earning lesser yield. Large brick-and-mortar banks, on the other hand, offer savings accounts with yields as low as 0.01%.

Generally, savings in a high-yield savings account are compounded over time. Obviously, it is at this point that the interest, which is normally paid monthly or quarterly, begins to accrue. Thus, using compound interest, you may watch your savings grow exponentially over time. Albeit, a high-yield savings account has a few drawbacks. Regardless, the FDIC insures your account up to $250,000, but in some situations up to $1 million. Likewise, it provides you with a chance to fight inflation. So, nothing like the risk of losing your money.

Similarly, savings account returns on high-yield accounts are frequently variable. This nevertheless means banks can raise or lower the rates at any time. For instance, in early 2022, some banks began lifting their annual percentage yields (APYs). Thus, breaking the decreasing trend in rates.

On the contrary, while internet savings accounts provide some of the greatest APYs, they are also more difficult to access than traditional savings accounts. However, this may be a positive thing for emergency savings because you won’t have as many chances to withdraw funds.

Although having limited access to your savings may be stressful, it helps avoid frequent withdrawal, keeping your emergency savings in a high-yield account to watch them grow rather than constantly draining them. Plus the bigger your account balance, the more compound interest you earn over time. So, the federal withdrawal restriction is a positive thing after all.

Choosing a High-Yield Savings Account

Basically, consider these factors while looking for a high-yield savings account.

#1. Annual Percentage Yield (APY)

The APY is one of many key factors to consider in choosing a high-yield savings account. Compounding is one effect of the APY. In other words, interest earned on your initial deposit is compounded with interest income on other deposits. Generally, the higher the APY, the better. However, it’s crucial to compare it to the criteria to earn it.

#2. Minimum Deposit Requirement

Depending on the bank, the minimum deposit ranges from $0 to $10,000. Regardless, consider your investment capacity while comparing high-yield savings options. For instance, if you want to save money, think about how much you can save and how long you can save it. Similarly, for the best returns, examine the minimum deposit requirements at all banks you have in mind before setting up an account. Online banks, in their case, frequently waive minimum initial deposits and monthly costs.

#3. Minimum Balance Requirements

The APY offered by some high-yield savings accounts may have a minimum balance requirement, as well as a minimum deposit to create an account. Therefore another key factor to consider while comparing high-interest savings accounts are how regularly you need to access funds. And also if you can keep up with the minimum balance requirements.

#4. Regular Changes in Rates

Basically, banks and credit unions often change interest rates. Likewise, savings account yields are usually variable unlike CDs, which normally stick to a rate for a particular timeframe.

However, APYs on savings accounts might change for many reasons. While it may increase its rate to encourage new deposits. It could also be in response to broader economic circumstances, like changes in the Federal Reserve’s monetary policy.

Hence, Because savings rates are frequently changeable, find out how often a bank gives teaser rates. And at the same time, calculate your potential earnings after the first year.

#5. Cashout options

In general, Regulation D limits the number of withdrawals of savings as well as money market accounts to six per month. These indeed include online payments, mobile transfers, recurring transfers, overdrafts, as well as check or debit transactions. On the other hand withdrawals or transfers made through an ATM or a bank do not add up.

High Yield Savings Account Rates

Individual banks control the timing of adjustments to their variable interest rates, which are closely related to the Federal Reserve’s federal funds rate. Simply put, this means that the rates at which you set up your high yield saving account are not the guaranteed amount of money you’ll make in the long run. Generally, your APY is unlikely to fluctuate on a weekly or monthly basis. However, that doesn’t mean you should ignore it. Likewise, it’s not uncommon for savings account rates to stay the same for several extended periods of time.

The Fed’s emergency decision to drop rates to near zero at the onset of the COVID-19 pandemic in March 2020, for example, may cause changes to occur more quickly.

That being said, the following are the various high yield savings account rates as of April 2022;

Institution  APY     Fees
Comenity Direct High-Yield Savings Account  0.75%      None
Quontic Bank High Yield Savings  0.75%      None
LendingClub Bank High Yield-Savings Account    0.70%    None
Citibank Accelerate High-Yield Savings    0.60%      None
Live Oak High-Yield Online Savings    0.60%      None
Synchrony Bank High Yield Savings       0.60%       None
Alliant Credit Union High-Rate Savings Account
None ($1 for paper statements)
CIBC Bank USA Agility Savings Account  0.57%      None
Barclays Online Savings    0.55%      None
Pentagon Federal Credit Union Premium Online Savings Account
Ally Bank Online Savings Account  0.50%      None
American Express High Yield Savings Account    0.50%      None
Discover Bank Online Savings Account  0.50%      None
Marcus by Goldman Sachs High-Yield Online Savings Account  0.50%      None
PNC Bank High-Yield Savings  0.50%    None
TIAA Bank Basic Savings  0.50%      None
Vio Bank High Yield Online Savings Account    0.50%None ($5 for paper statements)
Citizens Access Savings Account    0.50%         None

High Yield Saving Account American Express

In general, a high yield savings account may be a good choice for you if you desire simple access to your money while earning a high-interest rate. However, American Express has a lot more to offer than just a low rate when you open a high yield saving account with them.

Accordingly, the American Express high yield savings account is among the finest, earning you more interest than your typical savings. Basically, when you open an American Express Savings High Yield Savings Account (HYSA), you’re helping your money grow at a faster rate than the national average.

In addition, the American Express high yield savings account is insured by The Federal Deposit Insurance Corporation (FDIC). While there are no monthly fees or minimums, you can also make up to 9 withdrawals/transfers each month.

The consumer banking branch of American Express offers a high-yield online savings account and CD choices with competitive rates for savers. Despite the lack of ATM access, you can effortlessly link numerous bank accounts to your American Express savings account for transfers. The American Express mobile app does not allow you to access your online banking account information; the functions of the American Express mobile app are only available to credit cardholders.

Withdrawal Limit

You may make up to nine (9) withdrawals or transfers from your High Yield Savings Account per month. However, there are rigorous requirements for withdrawing funds from an IRA (including an IRA High Yield Savings Account) prior to retirement age.

Service Hours

Monday through Friday, excluding holidays, are considered business days. Transfers can be initiated 24 hours a day, 7 days a week via the website or phone. Transfers initiated after 7:00 p.m. Eastern Time or on non-business days will begin to be processed on the next business day.

Estimates of expected interest earned are calculated. Due to several circumstances, such as leap years, the timing of deposits, rounding, and the variance in interest rates, actual results may differ from those depicted. To begin making recurrent deposits, the second period following any first deposit is assumed.


IRA contributions are subject to annual restrictions across all American Express and other IRA programs. IRA distributions may be taxed and penalized by the IRS. The RMD is solely applicable to this IRA plan and does not apply to other IRA plans maintained by American Express or other institutions.

American Express High Yield Savings Account

  • Annual Percentage Yield (APY): 0.50% APY 
  • Minimum Deposit Amount= $0

With its combination of above-average rates and consumer-friendly features, a High Yield American express savings account is rated among the best. Meanwhile, managing your account online is seamless with American Express. While your interest compounds daily and is deposited in your account monthly.

High Yield Savings Account With Bonus

Some banks are currently offering additional financial incentives to attract new subscribers. This is with a bonus offer of as much as $200 to $300 for new high yield savings account subscribers.

Simply put, when you open a new high yield savings account, you get a bonus. However, that’s not until when you meet the requirements.

So, in order to get the best high yield savings account deal, compare these bank bonus offers and other incentives.

The below table shows high yield savings account with a bonus;

AccountBonus amountExpiration date
Live Oak Bank Personal or Business Savings      $2003/31/2022
TD Bank Beyond Savings or Simple Savings      $2003/31/2022
Alliant Credit Union Ultimate Opportunity Savings    $10012/31/2022
Regions Bank LifeGreen Savings    Up to $100      N/A
BMO Harris Statement Savings    Up to $60      N/A

Best High Yield Saving Account 2023

Specifically, each company’s annual percentage yield (APY) is accurate at the time of this publication. However, they may vary according to the rates set by the Federal Reserve. Nevertheless, the following are a few of the best high yield saving accounts;

#1. Discover (Best Overall)

  • Offers 24/7 phone and chat customer support
  • Member of the FDIC
  • Operate Large ATM network

Minimum Deposit Requirement: None

Annual Percentage Yield: 0.40%

Minimum Balance Requirement: None

Fees: No fees if you exceed the federal limit of 6 transactions per statement cycle.

#2. Ally Bank (Best Online-Only Bank)

  • Possesses multiple online tools or machinery to boost savings
  • Offers daily compounding interest-Free access to the Allpoint ATM network
  • Insured by the FDIC

Annual Percentage Yield: 0.50%

Minimum Deposit Requirement: None

Minimum Balance Requirement: None

Fees: $10 excessive transactions fee if you exceed the federal limit of 6 transactions per statement cycle.

#3. CIT Savings Builder (Best Committed Savings Plan)

  • Daily interest compounding
  • Option to use Zelle as well as cash app with an online savings account
  • Give access to a high-yield savings calculator
  • Operate online check deposit

Annual Percentage Yield: 0.28% to 0.40%

Minimum Deposit Requirement: $100 to open an account

Minimum Balance Requirement: Make a $100 each month or maintain a balance of $25,000

Other fees: Excess activity fee if you exceed the limit of 6 transactions per statement cycle

#4. Betterment Cash Reserve – Best Cash Management Service

  • An unlimited savings withdrawals
  • Creating cash goals for specific saving goals options
  • FDIC insurance available

Annual Percentage Yield: 0.30%

Minimum deposit requirement: $10

Minimum Balance Requirement: None

Fees: None

#5. PenFed Premium Online Savings – Best Credit Union

  • Offer free online transfers
  • No maintenance fees
  • Yield is compounded and credited directly to your account monthly
  • Available insurance by the National Credit Union Administration for up to $250,000

Annual Percentage Yield: 0.45%

Minimum Deposit Requirement: $5

Minimum Balance Requirement: None

Fees: A fee may be charged if you exceed the limit of 6 transactions per statement cycle.

#6. Varo – Best For Combining Checking and Savings

  • Compound interest daily and pays monthly
  • Give absolute online and mobile accessibility
  • Highest APY rate with its tiered interest rate program
  • FDIC insurance available

Annual Percentage Yield: 0.20% to 3.00%

Minimum Deposit Requirement: $5

Minimum Balance Requirement: None

Fees: None


Basically, a high yield saving account can help you grow your money faster than regular savings accounts with its highest interest rates, while also accelerating your progress toward your goals.

High Yield Saving Account FAQs

Is a high-yield savings account worthy of having?

Yes. Why? Because your cash is protected by the federal government’s insurance program. Besides, you receive a better yield than you would from an ordinary savings account. Albeit it’s still less than you could get from riskier investments.

Do high-yield savings account have a downside?

A High yield savings account typically has variable interest rates that can change at any time. Likewise, when you apply, a bank may offer a high annual percentage yield (APY), but that rate isn’t guaranteed to be there for the long haul.

Are high yield savings account safe?

High-interest savings accounts are generally considered to be safe like traditional savings products. They have a strong emphasis on safety. The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF) insure high-yield savings accounts up to $250,000 at banks and credit unions.

What makes online savings accounts stand out?

Savings accounts with the highest rates of interest may usually be found online. An online banking institution is more likely to offer an account with a competitive yield. However, one major reason why these banks are able to pay more is that they don’t have branches and as such, they have fewer expenses

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