Best High Yield Savings Account, What is Highest Savings Account 2023?
by Suganya
Updated May 11, 2023
Savings Account
A savings account is a type of deposit account offered by banks and credit unions that allows individuals to save money while earning interest on their savings. These accounts are designed to provide a place to store your funds while earning a higher interest rate than you would get with a checking account.
One of the key benefits of a savings account is that it is generally a low-risk investment, making it a good option for individuals who want to protect their money while earning a modest return. Savings accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which means that deposits up to a certain amount (currently $250,000 per depositor per institution) are protected even if the bank or credit union were to fail.
Another benefit of a savings account is that the funds are easily accessible. While there may be certain restrictions on how many withdrawals you can make per month, you can generally withdraw your funds at any time without penalty. This makes it a good option for individuals who want to have quick access to their money in case of an emergency.
When choosing a savings account, it is important to compare interest rates, minimum deposit requirements, and fees across different institutions. Some accounts may have higher interest rates but higher minimum balance requirements, while others may have lower interest rates but no minimum balance requirement. Additionally, certain accounts may charge fees if you do not maintain a certain balance or if you exceed the monthly withdrawal limit.
A savings account is a useful tool for individuals who want to save money and earn interest on their savings, while still maintaining easy access to their funds. It is important to research different options and choose an account that best meets your individual needs and financial goals.
Best High Yield Savings Account
CFG Bank offers the highest interest rate for nationally available savings accounts at 5.02% annual percentage yield (APY). This rate is significantly higher than the national average for savings accounts, which is 0.39% APY. Our team has conducted weekly rate research on over 200 banks and credit unions that offer nationwide savings accounts, and even the 10th-best rate on the list is a competitive 4.81% APY. In the rankings below, we have featured the top savings account rates available from our partners, followed by a comprehensive list of the best savings account rates available nationwide.
How to Choose High Yield Savings Account
Amid the economic consequences of the coronavirus pandemic, interest rates on savings accounts have been significantly reduced. Nevertheless, it is still wise to invest your money in a savings account even during this period of low rates. By opening a high-yield savings account, you can accumulate funds for future goals and emergencies. If you have the cash available, there is no reason to delay investing until the economy improves. The internet has made it easier than ever to open a savings account. A simple Google search can reveal hundreds of options from online and brick-and-mortar banks, many of which offer limited-time promotions and cash bonuses for opening a checking or savings account. With numerous options available, you must carefully consider four critical factors to select the best high-yield savings account for your finances.
Online vs. Traditional Savings Accounts
To your local brick-and-mortar bank to open a high-yield savings account, it's worth exploring your online banking options. Online banks typically offer higher interest rates on savings accounts than traditional banks because they have lower operating costs. Since they don't have physical branches to maintain, they can pass on their savings to customers in the form of higher interest rates. Although banking virtually may require some adjustment, rest assured that your money is safe as long as the online bank is FDIC-insured. Most high-yield savings accounts offer FDIC insurance up to $250,000.
Higher than Average Interest Rates
The annual percentage yield (APY) of your savings account determines the interest you receive on your savings each year. A higher APY translates to faster growth in your savings. The average savings account interest rate in the U.S. is currently low, at just 0.37%, as reported by the FDIC. If you're looking for a high-yield savings account, you'll want to find one that offers an APY greater than the average of 0.05% that you would earn in a standard savings account. Keep in mind that high-yield savings account APYs are variable, meaning they can change depending on economic conditions. While most high-yield accounts currently offer around 2.00% APY, even a small increase can make a significant difference in how much you earn over time. For example, a one-time deposit of $100 could earn you just five cents with a low APY, but up to $1 with a high-yield savings account. Some accounts, such as the Varo Savings Account, offer the opportunity to earn even more, but you'll need to meet specific monthly requirements.
No Bank Fees
It's important to find a bank account that doesn't charge fees for keeping your money. To ensure that you are getting a fee-free account, carefully read the terms and conditions, including the fine print, before opening the account. Some banks may waive fees but require a minimum deposit to open an account or to start earning interest, while others may charge a monthly maintenance fee if you don't maintain a minimum balance. To avoid additional expenses, search for a high-yield savings account that has zero recurring fees, minimums, or balance requirements.
Easy Access to Your Money
When selecting the ideal savings account, take into account the account's accessibility. As high-yield savings accounts are an excellent means of establishing an emergency fund, you should ensure that you have immediate and convenient access to your funds if you encounter an unforeseen expense and need to use your savings.
Search for a savings account that provides one or more of the following features: ATM access, which enables you to withdraw funds at any time; a linked checking account, which allows for easy fund transfers; and a mobile app that lets you manage your finances while on the move.
High Yield Savings Account Apple
Goldman Sachs, in partnership with Apple, has launched a high-yield savings account that offers a 4.15% annual percentage yield (APY) on savings. While this rate is over 10 times the national average APY, there are other accounts that offer even higher rates, with some earning up to 5.00% APY and a few approaching 6.00% APY.
The Apple Savings account is only available to Apple Card users, which may make it a good fit for some. However, potential customers should consider the impact of opening a new line of credit, as it could potentially harm their credit score if they are applying for a mortgage or other major loan.
The Apple Savings account automatically collects Daily Cash earned by the Apple Card and allows funding with deposits from a linked external bank account. Interest is compounded daily and credited monthly. The account has a $250,000 maximum balance limit.
Accessibility
If you don't have an Apple Card or don't want to open one, you can't access Apple's savings account. But, there are many other savings accounts available that allow you to manage your money through an app without being an Apple user. UFB Premier Savings, for instance, offers a 4.81% APY and has an app that can be downloaded from both the Apple App Store and the Google Play Store.
Interest Rates
In the pursuit of the highest APY, savings accounts often come with restrictions on the amount of money that can earn the topat -tier rate. While some accounts have caps, others like Western Alliance Bank have no limit. However, Apple's 4.15% APY is still a good option compared to the national average of 0.24% APY, especially for those who prefer using a familiar platform.
Fees
Similar to other high-yield savings accounts recommended by CNBC Select, Apple Savings doesn't impose any service fees. Other banks that also don't charge a monthly fee are Newtek Bank's Personal High Yield Savings and CFG Bank, with the exception of the latter which requires a minimum deposit of $1,000.
High Yield Savings Account Rates
CFG Bank
5.02%
Newtek Bank
5.00%
TotalDirectBank
4.95%
Primis Bank
4.92%
Vio Bank
4.85%
First Foundation Bank
4.85%
Popular Direct
4.85%
CIT Bank
4.85%
UFB Direct
4.81%
Upgrade
4.81%
Laurel Road
4.80%
Panacea Financial
4.80%
Ivy Bank
4.80%
TAB Bank
4.76%
Bask Bank
4.75%
BankPurely
4.75%
iGObanking
4.75%
Bank Name
APY( Annual Percentage Yield)
What is High Yield Savings Account?
A high-yield savings account, also known as a high-interest account, is a type of savings account that pays higher interest rates than traditional savings accounts. These accounts are a good option for short-term savings since they offer better returns and allow your money to grow without risk. Although investing in the stock market can yield higher returns, it also comes with market volatility and unpredictability. With a high-yield savings account, you can earn competitive interest rates on your deposits without taking on investment risks. Although interest rates on these accounts may fluctuate, they are still a good choice for those who want to grow their savings without investment risks.
Moreover, high-yield savings accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC), as long as your bank is FDIC-insured. This implies that if your bank fails, your funds will be protected up to a certain amount. Additionally, unlike a certificate of deposit (CD), you can withdraw your money from a high-yield savings account whenever you require it, making it a more flexible option for short-term savers.
Benefits
High-yield savings accounts offer several benefits, including
Downsides
Best High Yield Savings Account - FAQs
A high-yield savings account is a type of savings account that offers higher-than-average interest rates on deposits, making it a great option for short-term savings.
The advantages of a high-yield savings account include higher interest rates, flexibility, risk-free savings, good for short-term savings goals, and ideal for an emergency fund.
The disadvantages of a high-yield savings account include not being suitable for daily banking, more requirements to open than a standard savings account, not being the best for long-term financial goals, and fluctuating interest rates.
Yes, you can access your money in a high-yield savings account at any time without penalty, unlike a certificate of deposit.
Yes, high-yield savings accounts are typically FDIC insured, as long as the bank offering the account has FDIC insurance.