Top High-Yield Savings Accounts in 2023 

A high-yield savings account is a type of savings account that offers a higher interest rate compared to standard savings accounts. Online banks or financial institutions typically offer these accounts and are designed to help you grow your savings faster. 

How Can a High-Yield Savings Account Help You Earn?

The primary benefit of a high-yield savings account is its significantly higher interest rates than standard savings accounts. This means that your money can grow faster, allowing you to maximize your savings potential and earn more on your deposited funds.

High-yield savings accounts often come with convenient access to your money. Many providers offer online banking and mobile apps, allowing you to manage your account, track your savings, and make transfers easily. You can access your funds whenever needed, providing flexibility and convenience.

Similar to standard savings accounts, high-yield savings accounts are typically insured by Federal Deposit Insurance Corporation (FDIC), protecting your deposits up to $250,000 per depositor, per bank. 

Additionally, many high-yield savings accounts offer online and mobile banking features, making it easy to manage your money and access your funds anytime, anywhere.

1. SoFi 

As an online-only bank, SoFi is a popular choice among young adults and folks who are looking to make their money grow quickly. Founded in 2011 by four grad students, its goal was to offer an affordable banking experience.

SoFi offers one of the highest APY across the board – up to 4.20%. To snag this rate, you’ll need to set up direct deposit for the first time. Also, this is a promotional offer which could expire after a certain amount of time.

But a 4.20% APY is not the only perk that appeals to consumers. Here are a few others:

• Up to $250 bonus for setting up direct deposit
• No account fees
• Overdraft protection
• 2-day early paycheck deposits
• Up to 15% cash back

2. Discover

Discover has been a major player in the banking industry for several years. It offers an online savings account with an APY of up to 3.90%. That’s more than five times the national average, all without any monthly fees attached. 

That means no fees for:

• Insufficient funds
• Bank checks
• Monthly maintenance
• Excessive withdrawals

3. Barclays

If you’re looking for a savings account with a high APY and additional features, check out Barclays online savings account. You can get up to 4.00% APY and a handful of appealing features, like:

• No minimum balance
• Fast money transfers
• Savings tools
• Direct deposit

How High-Yield Savings Accounts Can Help You Save Money 

Having a dedicated high-yield savings account allows you to separate your savings from your everyday spending. This distinction helps you avoid unnecessary temptations to spend your savings impulsively and reinforces the habit of building a financial cushion for the future.

With higher interest rates, your savings can accumulate more quickly over time. The power of compounding interest enables your money to generate earnings, which are reinvested and contribute to the growth of your savings. This can help you reach your financial goals faster, whether it’s: 

• Building an emergency fund. 
• Saving for a down payment. 
• Planning for retirement.

The prospect of earning higher interest on your savings can motivate and encourage you to save more. The visible growth of your savings account can be a constant reminder of the progress you’re making toward your financial goals, boosting your commitment to saving.

Some banks have high-yield accounts with rates higher than 4.75%, but keep in mind you might need a minimum balance or minimum direct deposit. These include:

• Bask Bank
• Cit Bank
• UFB Direct

Comparing High-Yield Savings, Standard Savings, and Checking Accounts

Here’s a comparison chart highlighting the key differences between high-yield savings accounts, standard savings accounts, and checking accounts:

Understanding the Key Differences

• Higher Interest Rates: A high-yield savings account’s main advantage is its significantly higher interest rate. While standard savings accounts typically have low-interest rates (often around 0.01% to 0.10%), high-yield savings accounts can offer rates ranging from 0.50% to over 4% APY (Annual Percentage Yield), depending on the market conditions and the specific account.
  
• Limited Transaction Capabilities: High-yield savings accounts may limit the number of monthly transactions you can make. Federal regulations generally allow up to six withdrawals or transfers per statement cycle, although there are no limits on deposits or in-person transactions.
  
• No Check-Writing Abilities: Unlike checking accounts, high-yield savings accounts do not usually offer check-writing capabilities. These accounts are primarily meant for saving and accumulating interest rather than facilitating everyday transactions.

High-yield savings accounts can be a great option for individuals looking to maximize their savings and earn higher interest rates. However, it’s essential to review each account’s terms, fees, and features to find the one that aligns with your financial goals and preferences.

5 Tips for Choosing the Right High-Yield Savings Account

1. Compare Interest Rates: Look for a high-yield savings account with the highest interest rate available. Remember to consider whether the rate is fixed or variable and if it’s subject to change based on market conditions.
   
2. Evaluate Fees and Minimum Balance Requirements: Assess any fees associated with the account, such as monthly maintenance or excessive withdrawal fees. Additionally, consider the minimum balance requirement to avoid fees or to earn the advertised high-interest rate.
   
3. Research the Financial Institution: Look into the reputation and financial stability of the bank or institution offering the high-yield savings account. Ensure that it is FDIC-insured for added security.
   
4. Consider Account Accessibility: Assess the convenience and accessibility of the account, including online and mobile banking features, customer support, and the ease of transferring funds to and from the account.
   
5. Read Reviews and Seek Recommendations: Check online reviews and seek recommendations from trusted sources to gain insights into other customers’ experiences with high-yield savings accounts.