Best High-Yield Savings Accounts of October 2023

*Rates and APYs are subject to change. All information provided here is accurate as of September 27, 2023.

A high-yield savings account offers an annual percentage yield (APY) that's significantly higher than a traditional savings account. Typically, interest on a high-yield savings account (HYSA) is compounded daily and credited monthly. These features make saving with a HYSA an excellent option for both short and long-term goals, such as buying a laptop, saving for a down payment on a house or setting aside an emergency fund.

Read on for our best high-yield savings account picks, plus how to choose the best one for your personal finance goals.

Our Top Picks for the 6 Best High-Yield Savings Accounts of October 2023

• mph.bank - Best Online Bank for High-Yield Savings Accounts
• UFB Direct - Best High-Yield Savings with ATM Card
• CIT Bank - Best High-Yield Savings Account with a Minimum Deposit
• My Banking Direct - Best Regional Bank for High-Yield Savings Accounts
• Varo - Best High-Yield Savings Account and Checking Combination
• Western State Bank - Best High-Yield Account for Serious Savers

Best High-Yield Savings Accounts Reviews

Each company’s annual percentage yield (APY) is accurate at the time of this publication, but they may vary according to the rates set by the Federal Reserve.

Why we chose it: mph.bank is our pick for best online bank for high-yield savings accounts because it offers one of the highest rates among companies we evaluated and requires no monthly fees or minimum balance.

Mph.bank’s newest savings account — the Future account — pays competitive interest on your balance. No matter how high or low, any balance qualifies for the highest APY.

There are no overdraft fees, no monthly fees and no minimum balance required to open a new account. Additionally, Mph.bank — considered a neobank or an online-only bank with no physical locations — offers an easy-to-use mobile app with a personalized dashboard. From here, you can see all your finances on one page, view your credit score and credit report and access your statements anytime. Online help and live chat are also available.

Why we chose it: UFB Direct is our choice for Best High-Yield Savings with ATM Card because it includes a debit card with its high-yield savings account and doesn’t limit the number of withdrawals you can make.

UFB Direct, a division of the digital financial institution Axos Bank, currently offers one of the highest APYs in the high-yield savings account market. Additionally, the UFB High Yield Savings account comes with a debit card, which isn’t standard for accounts of this kind. Plus, there’s no cap on how many withdrawals you can make.

However, it’s worth noting that UFB charges a $25 fee for each charge that exceeds your balance. (The maximum fee you can pay in a single day is $75.) The only overdraft protection UFB offers is coverage of negative balances through linked UFB checking accounts.

Still, with no monthly fees and no minimum deposit or balance requirements, UFB’s high-yield savings account is a solid choice — especially considering its competitive annual percentage rates.

Why we chose it: CIT Bank is our choice for the best high-yield savings account with a minimum deposit because of the high APY rates of both of its savings account options.

CIT Bank provides a high-earning savings account option with its Platinum Savings product. The initial deposit required is $100. However, to get the best rates on APY, you must maintain a balance of $5,000. The bank’s other high-yield account, Savings Connect, earns customers a strong APY on any balance. It also requires a $100 initial deposit.

Neither product carries a monthly maintenance fee. Interest on both Platinum Savings and Savings Connect are compounded daily.

CIT operates without physical branches, but clients can chat with a customer service rep over the phone from Monday through Saturday. Customers can also use the bank’s mobile app to check their transaction history, transfer funds and make mobile check deposits.

Why we chose it: My Banking Direct is our pick for best regional bank for high-yield savings accounts because, after an initial $500 deposit, all of its accounts qualify for the highest APY, so long as you maintain a balance of $1 or more.

My Banking Direct offers a high-yield savings account with a competitive annual percentage yield and no monthly fees. You need to make an initial deposit of $500 to open an account, but after that, the required minimum balance is only $1. All of My Banking Direct's high-yield savings accounts are eligible for the highest annual percentage yield available, regardless of the user's balance.

Mobile deposits can be made using the app, and you can easily transfer funds from other accounts or set up recurring deposits. Still, you can't withdraw funds from your high-yield savings account through an ATM, since My Banking Direct doesn’t offer a debit card for this product. Checks aren’t available either, but you can transfer funds to other accounts or contact the bank to process a withdrawal.

Why we chose it: Varo is our choice for best high-yield savings and checking combination because its high-yield account offers a strong APY, and its checking account includes perks, such as early direct deposit and cash advances.

Varo, a digital-only bank, offers several extras for customers who bundle a high-yield savings account with a checking account. There is no monthly fee, minimum balance requirement or minimum deposit for either of these accounts.

When you receive at least $1,000 each month in direct deposits to your savings account, you get the highest APY available on balances up to $5,000. Checking account holders have access to a fee-free cash advance of $20 and, with consistent on-time payments, access to advances of up to $250 with minimal fees.

Customers looking to increase their savings account can use automatic round-ups. Through this feature, Varo will round transactions to the nearest dollar and transfer the difference to your high-yield savings account. Furthermore, with “Save Your Pay,” customers can designate a percentage of their checking account direct deposit to be automatically transferred to their savings account.

Why we chose it: Western State Bank is our top choice for best high-yield savings account for serious savers due to its high returns after an initial $5,000 deposit.

If you’re ready to invest at least $5,000 in savings, Western State Bank is a top choice for earning interest on your funds. You’ll find a strong APY in its High Yield Money Market Account, where interest is calculated using your daily balance, then compounded and credited monthly.

You can transfer funds into your account via external transfers (i.e., transfers from another bank) and ACH deposits. Wire transfers are also an option, and Western covers one outgoing wire fee per month. Checks sent via overnight mail are available, too, and Western reimburses all delivery and shipping fees. For those who live in or near Arizona or North Dakota, you can deposit funds in person at one of the regional Midwestern bank’s branches.

The initial deposit may be out of reach for some, but those looking to set aside a significant chunk of money for savings will certainly benefit from Western’s high annual percentage rates.

Other high-yield savings accounts we considered

Bask Bank

Bask Bank is the digital bank of the Texas Capital Bank, a brick-and-mortar bank founded in 1998. Its Interest Savings Account debuted this year. Previously, Bask only offered a savings product that accrued American Airlines mileage, not cash.

Why Bask Bank didn’t make the cut: While Bask Bank offers a high APY savings account with no fees, it doesn’t include the extras (e.g. savings tools) that other banks with the same rate offer.

Discover

Discover is best known for its credit cards, but the company also offers banking products. This includes an online savings account with no monthly fee and no initial deposit requirement. You aren’t required to maintain a minimum balance, either.

Why Discover didn’t make the cut: The APY for Discover’s online savings account is currently lower than what’s offered by the best high-yield savings accounts available today.

Capital One 360 Performance Savings

The 360 Performance Savings account from Capital One has no transfer limits and no monthly fees. There's also no minimum balance required to open the account.

Why Capital One didn’t make the cut: Capital One charges a $2 fee for withdrawals from non-Capital One ATMs, on top of any fee the ATM company may charge. We’re also not keen on the possibility of a credit report pull to open an account, as many other banks don’t require this.

Marcus by Goldman Sachs

A product of Goldman Sachs, the Marcus Online Savings account charges no fees and requires no minimum deposit to open. However, third-party review sites show many complaints about the company overall. Most of these cite poor customer service, while some customers claim they were locked out of their savings accounts without notice.

Why Marcus by Goldman Sachs didn’t make the cut: Its APY is lower than other companies in our top picks. Additionally, the many negative reviews on third-party review sites are a concern.

Barclays Online Savings

The Barclays Online Savings account has no monthly fees or minimum deposit to open. Additionally, Barclays does not set any limits on withdrawals or transfers.

Why Barclays didn’t make the cut: Barclays doesn’t offer a debit card or checks with its high-yield savings account. Additionally, there are other financial institutions with higher APYs.

Synchrony High Yield Savings

Synchrony Bank, an online-only bank, offers a high-yield savings option. No minimum deposit to open the account and no monthly fees are charged. The bank also offers an online savings calculator to help you set financial goals.

Why Synchrony Bank didn’t make the cut: The APY Synchrony offers is on par with what’s currently available elsewhere, but other financial institutions offer higher APYs.

High-Yield Savings Accounts Guide

High-yield savings accounts are relatively easy to understand but share many characteristics with other bank products. Read on to learn about high-yield savings accounts, from how they work to which features to look for when choosing an account.

What is a high-yield savings account?

High-yield savings accounts, also known as high-interest rate savings accounts, are bank accounts that earn you a higher APY than a traditional savings account. For many, saving money is critical to their personal finance goals — and high-yield savings account rates are stronger than many other types of savings accounts.

Additionally, high-yield savings accounts allow unlimited access to funds through various withdrawal methods. This is unlike other high-interest-bearing savings products, such as certificates of deposits (CDs), which are offered in set term lengths. Customers who withdraw funds early from CDs are typically penalized.

How does a high-yield savings account work?

By offering a higher interest rate than traditional savings accounts, high-yield savings accounts help savers grow their money in a shorter span of time. This type of account also limits the ways in which you can access your money, so you’re less likely to stray from your savings goals.

These limitations are not the same for every high-yield savings account and some online and traditional banks allow you to order checks or request a debit card to allow easier access to your funds.

How to open a high-yield savings account

• Apply online, over the phone, or if the bank has brick-and-mortar branches, go there in person

• Enter personal information, such as full name, address, driver’s license or government-issued ID, phone number, Social Security number and where your deposits will come from (e.g., transfers from other accounts, direct deposits, mobile deposits) as requested

• Agree to terms and conditions after reviewing; check for fees and specifics on rates

• Receive instant approval or, in some cases, wait for confirmation from the bank via email or regular mail

• Consider setting up direct deposit if required to earn the highest APY. You can also transfer funds into your account from another institution through online transfer. With brick-and-mortar banks, you can deposit funds in person.

How to pick a high-yield savings account

Follow these steps to pick a high-yield savings account that fits your needs.

1. Evaluate your savings goals: If you’re looking for fast but small gains on your savings, a high-yield savings account may be right for you. However, if you’re looking to turn a greater profit, you may want to consider other savings or investment options.

2. Compare APYs across HYSAs: Given that the main selling point of a high-yield savings account is its higher interest rate, a high APY should be the main factor to consider when shopping around.

3. Look for accounts with zero fees: Many HYSAs are entirely free to use, while some banks set a monthly fee that can be waived by meeting certain requirements, such as a set amount of direct deposits per cycle. Avoid accounts with monthly fees that can’t be waived, as these costs cut into your interest earnings.

4. Make sure your bank notes “member FDIC” or “member NCUA”: You’ll find this information at the bottom of the financial institution’s website. FDIC or NCUA insurance is a must, because it safeguards your money if your bank or credit union should fail due to bankruptcy or insolvency.

High-yield savings account alternatives

High-yield savings accounts are one way to save money and earn interest, but there are additional options to consider. Read on to see how a HYSA measures up to the alternatives.

High-yield savings vs. money market account

While high-yield and money market accounts are both high-interest savings accounts, even some of the best money market accounts don’t offer APYs as high as HYSAs. Find out other ways in which these accounts differ in the table below.

High-yield savings account vs. traditional savings account

A traditional savings account is much like a high-yield savings account. While they’ve traditionally offered lower APYs, today’s best savings accounts have undergone rate changes that now compete with HYSAs, making the two accounts more similar than ever before.

High-yield savings account vs. certificate of deposit (CD)

Unlike a high-yield savings account, with a Certificate of Deposit (CD) account, you agree to leave your funds in your account for a fixed period of time, usually from six to 72 months. You’ll likely incur a fee if you withdraw funds early. The best CD rates are on par with APYs offered by high-yield savings accounts.

High-yield savings vs. money market fund

A high-yield savings deposit account is quite different from a money market fund, which is a type of mutual fund regulated by the U.S. Securities and Exchange Commission (SEC). You earn interest on your money market funds because the bank or financial institution invests those funds on your behalf across several low-risk debt securities, such as Certificates of Deposit (CDs), U.S. Treasury bills and corporate bonds.

High-yield savings vs. checking account

A HYSA is a type of account that bears interest, while a checking account typically does not. Generally, checking accounts are meant for saving, but instead receiving and spending funds.

However, some of the best checking accounts do accrue interest, albeit at significantly lower rates than those offered by high-yield savings accounts. Some also offer cash back on purchases and sign-up bonuses.

Why open a high-yield savings account?

High-yield savings accounts are a great alternative to traditional savings accounts due to their higher interest rates. They’re particularly useful if you have short- to medium-term savings goals, such as saving for college, a new car, or a new house.

Of course, high-yield savings accounts can also serve as a replacement for a traditional savings account. Considering their higher interest rates, they’re an excellent tool for putting away any surplus cash you might not want in your checking account.

High-Yield Savings Account Glossary

• Annual Percentage Yield (APY) - APY is the effective rate of return on your investment after factoring in the effects of compound interest. The APY is considered in relation to the federal funds rate set by the Federal Reserve, also called the Fed.

• Interest - Simply put, interest is the amount of money that a bank pays its customers to hold their money. It is usually expressed as a percentage of the amount that each individual customer has deposited.

• Compound interest - You can think of compound interest as “interest on your interest.”

• Savings account - A type of bank account with higher interest rates than a checking account. They’re designed to help you put away extra funds for emergencies or short-term purchase goals.

• High-yield savings account - A type of savings account with a higher interest rate than a traditional savings account. They’re meant to help you build funds for short- or medium-term purchase goals, such as a new car, college or even a new home.

• Money market account - Money market accounts are similar to high-yield savings accounts but aimed at businesses. They are more likely to allow for debit cards and checks, particularly for individual employees who need to access business funds regularly.

• Checking account - A type of bank account designed for everyday spending. They allow for checks and ATM cards. The interest rates offered by these accounts are typically the lowest.

• Neobank - This type of bank is an online-only bank with no physical branches. It’s considered a type of fintech (financial technology) company.

• ACH transfer - An ACH transfer is an electronic transfer of funds from one bank to another. The ACH stands for “automated clearing house,” referring to the network that manages these transfers.

• FDIC/NCUA insurance - Money in a brick-and-mortar bank, online bank, credit union or any type of financial institution is secure as long as the financial institution is insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). Most high-yield savings accounts are FDIC or NCUA-insured up to $250,000.

How We Chose the 6 Best High-Yield Savings Accounts of October 2023

Below, we’ve detailed the methodology behind our choices for the best high-yield savings accounts.

Competitive annual percentage yield rates

• Financial institutions must offer competitive rates as compared to the average among the high-yield savings accounts we evaluated

• Financial institutions must have a solid history of high APY rates

• Some banks were disqualified because their APY rates were not as high as other banks we evaluated

Ease of use and accessibility

• User-friendly mobile app and easy-access online platforms

• Transparency with crucial information and terms and conditions

• High-yield online savings accounts with mobile accessibility were rated higher than those without

• Options to withdraw or deposit their money by electronic transfers, wire transfers, mailed checks or linking to external checking accounts

• ATM withdrawal options are a plus. Not all banks offer debit cards with high-yield savings accounts

Account fees or account balance requirements

It is not in your best interest to sign up with an institution that will charge a handful of fees. We prioritized companies with the following:

• No maintenance fees
• No minimum deposit requirements
• None or minimal balance fees
• None or low minimum balance requirements
• Free online transfers

Customer experience

We recognize that direct banking customers should be familiar with online and mobile platforms, but customer support must be readily available when needed. The best online savings accounts offer chat, phone, and email support; some even guarantee 24/7 customer support.

Strong financial standing

Your financial institution of choice should have a solid financial rating from a reputable credit rating agency. S&P Global Ratings, Moody’s, and Fitch Group are known as The Big Three in the industry, and you can search their databases for information on the bank of your choice.

We require that any top pick includes “member FDIC” on its site to make it publicly known that it’s an insured bank or financial institution in accordance with the standards of the Federal Deposit Insurance Corporation (FDIC). The FDIC covers up to $250,000 per depositor, per ownership category, per FDIC-insured institution.

For credit unions only, insurance by the National Credit Union Administration (NCUA) is acceptable. The NCUA also covers up to $250,000 per depositor, per ownership category, per NCUA-insured institution.

Comparison to other banks and financial institutions

To best evaluate the quality of a high-yield savings account, we researched and compared accounts across a multitude of banks and financial institutions, including Alliant Credit Union, Ally Bank, American Express high-yield savings from American Express National Bank, Apple Savings account, Axos, Bank of America, Barclays Online Savings, Bask Bank, Bread Savings, Capital One, Chase Savings, CIBC U.S., Citi Bank, CIT Bank Savings Builder, Citizens Bank, Discover Online Savings Account, Emigrant Bank, First Citizens Bank, First Foundation Bank, First Internet Bank, LendingClub, Marcus by Goldman Sachs, mph.bank, My Banking Direct, My Savings Direct, Nationwide, PayPal Savings, PenFed Credit Union, Primis, Quontic Bank, Regions Bank, Sallie Mae Bank, SoFi, Synchrony Bank, TIAA Bank, UFB Direct, U.S. Bank, USAA Bank, Varo, Vio Bank, Wealthfront, Wells Fargo and Western State Bank.

Summary of Money’s 6 Best High-Yield Savings Accounts of October 2023

• mph.bank - Best Online Bank for High-Yield Savings Accounts
• UFB Direct - Best High-Yield Savings with ATM Card
• CIT Bank - Best High-Yield Savings Account with a Minimum Deposit
• My Banking Direct - Best Regional Bank for High-Yield Savings Accounts
• Varo - Best High-Yield Savings Account and Checking Combination
• Western State Bank - Best High-Yield Account for Serious Savers