Our Top-Ranked High-Yield Savings AccountsUpdated on October 25, 2022 Show
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info. A savings account is a good place to keep money safe and liquid, but it’s not a great place to earn money, right? Not necessarily. Some banks and credit unions offer savings accounts with respectable interest rates that rival the rates earned with CDs—but without the restrictions. We review more than 150 banks and credit unions every weekday to find the best savings rates and deals. These high-interest savings accounts are available to customers nationwide, and your funds are federally insured up to $250,000 per depositor per institution. We start by finding the highest rates, and we favor accounts with low minimum deposit requirements and friendly fee structures. We also include money market accounts if they function like savings accounts. That means if an account pays a high yield and doesn’t allow you to write checks, it’s in the mix. We evaluate savings accounts that are widely available throughout the U.S. to identify the best high-interest savings accounts. For this round-up, we primarily look at the annual percentage yield (APY) offered, but to help you compare options, we also consider factors like how quickly interest compounds, how easily you can make deposits, and customer service availability. APYs are changing rapidly amid widespread uncertainty about the economy and financial markets. The Balance is monitoring rates and updating them accordingly. Best High-Yield Savings Accounts
We partnered with the following banks to bring you the savings account offers in the table below. Under that, you'll find additional details on our editors' picks for the best high-interest savings accounts and rates as of Oct. 25, 2022. All of the banks and credit unions listed are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). FitnessBank Fitness SavingsFitnessBank is an online division of Newton Federal Bank that rewards you based on your fitness activity. You’ll earn the max APY if you log an average of at least 12,500 steps daily with your Fitbit, Apple Health, Garmin, or Google Fit fitness tracker. Lower rates are available with lower activity levels, and you must open the FitnessBank app at least monthly to log your steps. The account requires a minimum of $100 to open, and you must maintain at least that much as an average daily balance to avoid a $10 monthly maintenance charge. Interest compounds daily and is credited monthly. Pros
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CFG High Yield Money Market AccountCFG Bank, founded in 1927, pays its best APY in the Online CFG High Yield Money Market Account. The website is not as functional or informative as some of the largest online banks, but if you prioritize high rates over the user experience, CFG might deliver what you need. The account requires $1,000 to open and avoid a monthly fee, but you must maintain a minimum daily balance of at least $25,000. Interest compounds daily and is credited monthly. Pros
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LendingClubLendingClub completed its acquisition of Radius Bank in 2021 and began offering checking accounts, savings accounts, and CDs in addition to personal lending. Customers can do all banking through the LendingClub mobile app, available for iOS and Android devices. What We Like
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DollarSavingsDirect Dollar SavingsDollarSavingsDirect is an online banking division of Emigrant Bank, which was founded in 1850 and grew to become the largest savings bank in the nation by the 1920s. Today, the bank offers CDs alongside a savings account with no minimum deposit, minimum ongoing balance, or monthly fees. Interest is compounded daily and credited monthly. Pros
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UFB Direct High Yield SavingsUFB Direct is a subsidiary of Axos Bank, itself an online-only institution. UFB Direct offers savings account and money market accounts. If you’re looking to borrow, the bank offers mortgages through its parent. There’s no minimum to open this account. Interest is compounded daily and credited monthly. Pros
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First Foundation Bank Online SavingsFirst Foundation Bank was founded in 1990 and has branches in California, Nevada, and Hawaii. The online savings account pays customers the highest APY on balances up to $5 million, and there are no monthly fees. To open an account, however, you must start with $1,000 in new money. Interest compounds daily and is credited monthly. First Foundation Bank also offers checking accounts and other products, but those are only available in the three states mentioned (the savings account is available nationwide). Pros
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Ivy BankIvy Bank is an online bank backed by Cambridge Savings Bank, which has been in business since 1834 and has $5 billion in assets. They offer online banking and a highly rated mobile app. The opening deposit required is $2,500. Pros
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Bask BankBask Bank created the first online-only savings account in 1999 through Texas Capital Bank. Today, it offers two savings accounts—its high-yield Interest Savings Account and its Mileage Savings Account. The Interest Savings Account earns an industry-leading 3.05% APY with no minimum deposit or monthly fees. Interest is compounded daily. The Mileage Savings Account presents a unique opportunity to earn airline miles simply by saving; you can earn 1 American Airlines AAdvantage mile for every $1 you save annually. Customer support is available by phone and email. Pros
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Vio Bank Cornerstone Money Market SavingsVio Bank is yet another online-only division that offers a small menu of CDs and high-yield savings and money market accounts, and is a part of a larger firm. In this case its parent is MidFirst Bank, based out of Oklahoma City, Oklahoma, and it’s nothing to sneeze at. MidFirst Bank has almost $23 billion in assets, which lends a note of credibility and sustainability to this bank over smaller institutions. But remember, your money is insured by the FDIC (or NCUA, for credit unions) up to $250,000 whether you bank here or with the small credit union down the street. Pros
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BankPurelyBankPurely is an online division of Flushing Bank, headquartered in Uniondale, New York. The bank offers all standard banking products, including CDs and checking, savings, and money market accounts through its online and mobile banking portals. The bank promises to plant a tree for every account that is opened. Pros
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iGObankingiGObanking is the online wing of Flushing Bank, an FDIC-insured commercial bank with branches throughout New York. It offers checking, savings, and money markets, as well as CDs in terms of six months, or longer term lengths that require a higher minimum balance but reward customers with both interest and a free gift from a catalog. Pros
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Frequently Asked QuestionsWhat Is a High-Interest Savings Account?A high-interest savings account, also known as a high-yield savings account, helps you grow your money while keeping it accessible. Savings accounts often pay interest on your deposits, but interest rates vary from bank to bank. What makes high-interest accounts unique is a relatively high rate on your balance: Top rates on these accounts are often 20 or more times the national average savings rate, multiplying your earnings. As you earn interest on your savings, you can leave the money in your account and allow the funds to compound. Put another way, you earn interest on the interest payments you received in previous months. The higher your rate, the faster your money grows. What Should You Look for in a High-Yield Savings Account?The interest rate is the feature that most people pay attention to when shopping for a high-yield savings account. Compare banks and pick a competitive rate, but don’t ignore other critical features.
Why Do Savings Account Rates Change?The interest rate on your savings account changes over time. In some cases, the rate remains the same over extended periods. But when rates in the broad economy change, banks typically move in sync with those changes. If the Fed cuts rates, there’s a good chance that your savings account rates will remain stagnant or fall. When rates rise, banks tend to increase rates, but not necessarily as quickly as you’d like. Why Are Some Bank Interest Rates Higher Than Others?How much interest you earn can vary quite a bit, but interest rates tend to be lower at big brick-and-mortar banks and higher at online banks. Banks raise rates when they want to gather money. If they need to get deposits in the door, a high rate on savings accounts attracts customers. If, on the other hand, they don’t need cash, they can keep rates lower. Banks have different approaches to earning money. Some take deposits and lend them out, while others take a more varied approach (earning revenue and fees from other services like credit cards and ancillary business). Organizational structure is also important. Some banks have shareholders demanding that the bank grow (and/or share income with the shareholders), and those demands may make it harder to pay high rates to depositors. However, some banks are able to keep only what they need to pay the bills and share the rest of the revenue (from loans, ATM fees, etc.) with account holders. Small banks and credit unions are most likely to fit the latter model. Is Savings Account Interest Taxable?Interest you earn in your savings account is generally taxable as income. Your bank typically reports your earnings on Form 1099-INT, and you should provide that information to your tax preparer or include it with your tax filings. With individual accounts, joint accounts, and other taxable accounts, you’ll pay tax on the interest you receive as income for the year. But if your account is part of a retirement account like an IRA, you may be able to postpone or avoid taxation on that interest. Keep an eye out for a 1099-INT in the mail during tax season. You may also be able to download the form through your online banking portal. Banks are not required to provide a 1099-INT unless you earn at least $10 during the year. However, interest income below $10 is still taxable and you must report all interest income to the IRS even if you didn't receive a 1099-INT. Which bank has best high yield savings account?The best high-yield savings account rates. LendingClub Bank - 3.12% APY.. UFB Direct - 3.11% APY.. Bask Bank - 3.05% APY.. CIT Bank - 3.00% APY.. Citizens - 3.00% APY.. Bread Savings - 2.90% APY.. BrioDirect - 2.80% APY.. Morgan Stanley Private Bank - 2.75% APY.. Which online bank has the highest APY?Best High-Yield Savings Account Rates. Bask Bank - 3.05% APY.. Vio Bank - 3.02% APY.. Valley Direct - 3.01% APY.. BankPurely - 3.01% APY.. iGObanking - 3.01% APY.. Panacea Financial - 3.00% APY.. CIT Bank - 3.00% APY.. Citizens Access - 3.00% APY.. Which bank gives 7% interest on savings account?The average monthly balance requirement is Rs 2,000 to Rs 5,000. Ujjivan Small Finance Bank is offering interest rates up to 7 percent on savings accounts. Equitas Small Finance Bank is offering interest rates up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,500 to Rs 10,000.
Which bank gives 6% interest in savings account?Digital Federal Credit Union offers 6.17%, Blue Federal Credit Union offers 5.00%, Landmark Credit Union offers 7.50%, online bank Mango Money offers 6.00% and Consumers Credit Union and online bank T-Mobile Money, both offer 4.00%.
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