The 7 best high-yield savings accounts of April 2023

Our picks at a glance

All of our ranked high-yield savings accounts have no monthly maintenance fee, are protected by FDIC insurance and feature some of the highest interest rates for savings accounts. Information and rates are current as of November 5, 2024. Estimated earnings are based on a deposit of $10,000 left in each account for one year.

Varo Savings Account

EverBank Performance Savings

Openbank High Yield Savings Account

My Banking Direct High Yield Savings

Bask Bank Interest Savings

First Foundation Online Savings Account

BrioDirect High-Yield Savings

Laurel Road High Yield Savings

UFB Direct High Yield Savings

LendingClub Bank High-Yield Savings

Historical savings rates of our best HYSA picks

Should I get a high-yield savings account?

High-yield savings accounts are a great place to put money that you want to grow quickly but also can access anytime. While regular savings accounts are easy to access, they generally don’t earn as much as high-yield savings accounts.

“Banks are offering attractive rates; the return is not trivial. You're getting a decent return for no risk and some nice benefits and services,” said Dr. Steve Pilloff, associate professor of finance at Costello College of Business at George Mason University. “If it's a savings account at an insured financial institution, then your funds are fully guaranteed up to $250,000. So, for most people, their funds are fully guaranteed.”

High-yield savings accounts are also worth considering if you are saving toward a specific goal such as an emergency fund or down payment on a new home. You not only earn high interest — you also have a single, convenient place to add to your savings.

What to consider when choosing a high-yield savings account

The same basic rules apply to choosing and opening a high-yield savings account that apply to any other bank account: It all comes down to your financial goals.

“I would definitely look at the yield — the rates that are being paid — but also look at minimum balances, minimum required balances and penalties,” said Pilloff. “So you don't want to just get mesmerized by, like, ‘Oh, wow, four and a half percent.’ If you look and see you have to maintain a certain amount in your account, or else the rate falls to a certain level or you'd have to pay a fee, then that could be a problem if you're going to struggle to meet that balance.”

Here are a few things to consider:

• Interest rate: You want to look not only at the rate currently being offered but also how long it lasts. In some cases what you see on a bank’s website is a promotional rate that might expire after six months or so, then drop down to a lower rate.
• Initial deposit: Some banks require a deposit to open a high-yield checking account. These often range from $5 to $100, but some accounts have much higher minimum deposits.
• Minimum balance: Read the fine print to learn the minimum balance to avoid service fees and earn the maximum APY.
• Fees: Many high-yield savings accounts have no fees, but some do. Make sure you know the fee structure before opening an account. Some fees to watch out for include monthly service fees, inactivity fees, ATM fees and excessive withdrawal fees.
• Compounding interest: Before opening the account, find out whether interest is compounded daily, monthly or yearly. This can make a big difference in how quickly you grow your money.

Pros and cons of high-yield savings accounts

No bank account offers everything, and that’s the case with high-yield savings accounts as well. Here’s a look at some of their strengths and weaknesses:

Pros

• High APYs compared to other types of deposit accounts
• Low fees (at least with online-only banks)
• High returns without high risks

Cons

• APY can change at any time, notably when the Fed makes interest rate adjustments
• Stricter requirements than traditional savings accounts at some banks
• High opening deposit and/or minimum balance requirements for some accounts
• Not ideal for daily banking, especially since many high-yield savings accounts are stand-alone and can’t be bundled with a checking account

Alternatives to high-yield savings accounts

The purpose of high-yield savings accounts is to give you the biggest return possible with a savings account, but it’s not always the best option depending on how you plan to use the account. Here are some options for alternatives to high-yield savings accounts.

Recent news on HYSA rates

Current federal funds target rate

The Fed slashed interest rates on September 18, 2024, cutting the federal funds target rate to between 4.75% and 5.00%. Although most traditional banks pay very little interest on savings accounts, you may find many HYSAs that more closely reflect the Fed’s benchmark rate.

“Overall, what we've seen is the national average, according to the FDIC, for savings rates are still really low,” said Dr. Brian Walsh, CFP and head of advice and planning at SoFi. “But, we're still seeing very competitive offers."

Looking forward to high-yield savings rates in 2025

So, what does this mean for the rates offered on high-yield savings accounts?

“I think as the Fed starts cutting rates, we'll ultimately see rates start going down on savings accounts,” Walsh continued. “It's just a question of how quickly they go down in response to those rate cuts.”

However, according to Walsh, it’s important to know what type of institution you are banking with to determine if you’ll be able to keep a higher rate for longer.

“A bank has more power and control over the interest rate or the APY that they offer,” Walsh said. “So, in theory, a bank could keep that APY higher, even after the Fed starts cutting rates. On the flip side, institutions that aren't banks that really offer cash management accounts … rely on other banks to ultimately provide that APY to their customers. So, those institutions have much less control to keep rates higher, even if they're offering a very high rate right now.”

No one knows what will happen in the future, so it’s a good idea to take advantage of relatively high interest rates now while you still can.

Methodology

CNN Underscored Money analyzed 68 savings accounts from 57 financial institutions to come up with the rankings for the best high-yield savings accounts. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on nine data points across six categories.

Here are the categories we analyzed and how we weighted each:

APY (65%)

The amount of interest you earn on your savings is the most important part of choosing a high-yield savings account for many consumers, so we weighted this highest of any factor.

Fees (10%)

Fees are a critical factor to consider with your high-yield savings account because they can eat away at any interest earnings, especially if an account has a high monthly maintenance fee.

Customer experience (5%)

While you’ll likely deal with your bank less often with a high-yield savings account than you will with a checking account, it’s still important to have a bank that’s trustworthy and easy to reach when you need help.

Digital experience (5%)

You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere.

Minimum deposit requirement (5%)

A high minimum deposit makes a savings account less accessible, so we rewarded accounts that more people can use.

Minimum balance to avoid a monthly fee (5%)

A high minimum balance to avoid monthly fees limits flexibility with your savings account because you’re limited in how much you can transfer or use for unexpected expenses without being penalized by fees.

We also considered several other factors like welcome bonuses and tier structures to earn APY.

Membership requirement (5%)

Financial institutions may have membership requirements you must meet to join and get accounts. For example, some credit unions have eligibility based on a list of employers, counties of residence or membership in certain charitable organizations. We rewarded financial institutions that allow anyone to sign up.

Frequently asked questions (FAQs)

CNN Underscored Money analyzed savings accounts from the following financial institutions:

Ally Bank, Amalgamated Bank, American Express National Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Access, Discover Bank, E*TRADE, EverBank, Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, FNBO Direct, Heritage Bank, Huntington Bank, KeyBank, Laurel Road, LendingClub Bank, Marcus by Goldman Sachs, My Banking Direct, Navy Federal, NBKC, Openbank, Pentagon Federal, PNC, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, SchoolsFirst Federal, SoFi, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank & Trust Bank, USAA Bank, Varo, Vio Bank and Wells Fargo

Additional reporting by Vance Cariaga, Carley Clark and Dori Zinn