Best High-Yield Savings Account Rates

for August 2023—Up to 5.25%

Our Guide to the Best Rates on High-Interest Savings Accounts

By 
SABRINA KARL
 

Updated August 11, 2023

Reviewed by 
MICHAEL J BOYLE
Fact checked by 
AMANDA BELLUCCO-CHATHAM
Fact checked by Amanda Bellucco-Chatham
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Amanda Bellucco-Chatham is an editor, writer, and fact-checker with
years of experience researching personal finance topics. Specialties
include general financial planning, career development, lending,
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The APYs listed below are current as of the date of publication on this
article. Our methodology consists of reviewing savings account rates every
weekday morning and updating the information below accordingly.

The best high-yield savings account rate you can earn from a nationally
available institution is currently 5.25% annual percentage yield (APY), with
three options to earn that rate—from Milli, Newtek Bank, UFB Direct,
and Evergreen Bank Group. That's more than 12 times the FDIC's national
average for savings accounts of 0.42% APY and is just one of the top
rates you can find in our rankings below.1 Culled from our weekly rate
research on about 100 banks and credit unions that offer nationwide high-
yield savings accounts, even the 10th-best rate on the list pays 5.06%
APY.
Below you'll find featured savings accounts available from our partners,
followed by our complete ranking of the best savings account rates
nationwide.

IN THE NEWS
Today’s high-yield savings rates are higher than we’ve seen in more than
15 years, pushed up by the Federal Reserve’s rate-hike campaign that
began in March 2022 to tame inflation. With another increase announced
July 26, the Fed has hiked the federal funds rate a cumulative
5.25%.2 High-yield savings rates closely follow the fed funds rate so will
likely trend slightly higher. And if there are more Fed increases this year,
that could push high-yield savings rates even higher.
Best High-Yield Savings Account Rates
 Milli* – 5.25% APY
 Newtek Bank – 5.25% APY
 UFB Direct – 5.25% APY
 Evergreen Bank Group – 5.25% APY
 TotalDirectBank – 5.20% APY
 CFG Bank – 5.17% APY
 FNBO Direct – 5.15% APY
 Vio Bank – 5.15% APY
 Popular Direct – 5.15% APY
 Western State Bank – 5.15% APY
 CIT Bank – 5.05% APY
 BankPurely – 5.05% APY
 iGObanking – 5.05% APY
 TAB Bank – 5.02% APY
 Salem Five Direct – 5.01% APY

The top savings account rates in the country are listed below in order of
APY. Where more than one financial institution has the same rate, we've
ranked accounts by those requiring the smallest minimum ongoing
balance, and if the same there as well, .

 
Note that some banks call their savings accounts "money market"
accounts. Money market accounts traditionally offer the ability to write
checks, while savings accounts do not. None of the accounts listed here
offer check-writing privileges, even if the name might suggest otherwise.
It's smart to also check our ranking of the best money market accounts ,
many of which pay comparable interest rates while also offering the ability
to write checks.
Milli* – 5.25% APY
 Minimum opening deposit: Any amount
 Minimum balance requirement: Any amount
 Monthly fee: None
 ATM card: Yes
 Mobile check deposit: No
 Checking accounts available: No
 CDs available: No

*This savings account is accessible only via a mobile app.

Newtek Bank, Personal High Yield Savings – 5.25%

APY
 Minimum opening deposit: $0
 Minimum balance requirement: Any amount
 Monthly fee: None
 ATM card: No
 Mobile check deposit: No
 Checking accounts available: No
 CDs available: Yes

UFB Direct, Priority Savings Account – 5.25% APY

 Minimum opening deposit: None
 Minimum balance requirement: None
 Monthly fee: None
 ATM card: Yes
 Mobile check deposit: Yes
 Checking accounts available: No
 CDs available: No

Evergreen Bank Group, High-Yield Online Savings –

5.25% APY
 Minimum opening deposit: $100
 Minimum balance requirement: Any amount
 Monthly fee: None
 ATM card: Yes
 Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: Yes
TotalDirectBank, Money Market Account – 5.20% APY
 Minimum opening deposit: $25,000
 Minimum balance requirement: $2,500 to earn stated APY
 Monthly fee: None
 ATM card: No
 Mobile check deposit: Yes
 Checking accounts available: No
 CDs available: Yes

Note: TotalDirectBank is available to customers nationwide except for

Florida residents.

Note: Although this account has "money market" in its name, it offers no

check-writing privileges and instead operates like a savings account.

CFG Bank, High Yield Money Market Account – 5.17%

APY
 Minimum opening deposit: $1,000
 Minimum balance requirement: $1,000 to earn stated APY
 Monthly fee: None with $1,000 ongoing balance; otherwise,
$10/month
 ATM card: No
 Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: Yes

Note: Although this account has "money market" in its name, it offers no

check-writing privileges and instead operates like a savings account.

FNBO Direct, Online Savings Account – 5.15% APY

 Minimum opening deposit: $1
 Minimum balance requirement: Any amount
 Monthly fee: None
 ATM card: Yes
 Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: No

Vio Bank, Cornerstone Money Market Savings Account

– 5.15% APY
  Minimum opening deposit: $100
 Minimum balance requirement: None
 Monthly fee: None
 ATM card: No
 Mobile check deposit: Yes
 Checking accounts available: No
 CDs available: Yes

Note: Although this account has "money market" in its name, it offers no
check-writing privileges and instead operates like a savings account.

Popular Direct, High-Rise Savings Account – 5.15%

APY
 Minimum opening deposit: $100
 Minimum balance requirement: None
 Monthly fee: None
 ATM card: No
 Mobile check deposit: Yes
 Checking accounts available: No
 CDs available: Yes

Western State Bank, Online Money Market Account –

5.15% APY
 Minimum opening deposit: $5,000
 Minimum balance requirement: None
 Monthly fee: None
 ATM card: No
 Mobile check deposit: No
 Checking accounts available: Yes
 CDs available: No

Note: Although this account has "money market" in its name, it offers no

check-writing privileges and instead operates like a savings account.

CIT Bank, Platinum Savings – 5.05% APY

 Minimum deposit requirement: $100
 Minimum balance requirement: $5,000 to earn stated APY
 Monthly fee: None
 ATM card: No
 Mobile check deposit: Yes
 Checking accounts available: Yes
  CDs available: Yes

BankPurely, PurelyMoneyMarket – 5.05% APY

 Minimum deposit requirement: None
 Minimum ongoing balance: $25,000 to earn interest
 Monthly fee: None
 ATM card: Yes
 Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: Yes

Note: Although this account has "money market" in its name, it offers no

check-writing privileges and instead operates like a savings account.

iGObanking, iGOmoneymarket – 5.05% APY

 Minimum deposit requirement: $25,000
 Minimum ongoing balance: $25,000 to earn interest
 Monthly fee: None
 ATM card: No (only with checking account)
 Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: Yes

Note: Although this account has "money market" in its name, it offers no

check-writing privileges and instead operates like a savings account.

TAB Bank, High Yield Savings Bank – 5.02% APY

 Minimum opening deposit: Any amount
 Minimum balance requirement: One penny
 Monthly fee: None
 ATM card: No
 Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: Yes

Salem Five Direct, eOne Savings – 5.01% APY

 Minimum opening deposit: $10
 Minimum balance requirement: Any amount
 Monthly fee: None
 ATM card: No (only with connected checking account)
  Mobile check deposit: Yes
 Checking accounts available: Yes
 CDs available: Yes

Pros and Cons of High-Yield Savings Accounts

 Higher APY than traditional savings accounts
 Let you withdraw your funds at any time
 Additional deposits allowed at any time
 Extremely safe, with virtually no risk
 In times of rising rates, your APY may go up

 To earn a top yield, you may need to open an account with a new
institution
 Some accounts limit withdrawals to six per month
 In times of decreasing rates, your APY may go down
 Easy access can make it tempting to dip into savings
 Could incur fees

Pros Explained
 Higher APY than traditional savings accounts: The top-earning
high-yield savings accounts typically pay 10-12 times the national
average rate, or even more, and likely pay substantially more than
the standard savings account at your primary bank or credit union.
 Let you withdraw your funds at any time: Unlike certificates of
deposit (CDs), savings accounts are liquid, meaning you can access
your cash just about any time you wish (though balance minimums
or withdrawal limits may apply).
 Additional deposits allowed at any time: After your opening
deposit, you can add funds to your account whenever you like,
including set-it-and-forget-it automated transfers from another
account to help you save for a big goal or “pay yourself first.” 
 Extremely safe, with virtually no risk: If your account is at an
FDIC-insured bank or NCUA-member credit union, your money is
insured up to $250,000 per individual and per institution should the
bank or credit union fail. Aside from any fees, there is almost no way
for you to lose your principal funds or the interest you’ve earned.
 In times of rising rates, your APY may go up: Anytime the Federal
Reserve increases rates, you stand the chance of being offered a
higher APY on your high-interest savings account.

Cons Explained
  To earn a top yield, you may need to open an account with a
new institution: If your primary bank or credit union does not offer a
competitive high-yield savings account, earning a top return will
require you to open an account at an institution that’s new to you.
Also, since traditional brick-and-mortar banks generally aren't the top
rate contenders, you'll need to consider online banks as well.
 Some accounts limit withdrawals to six per month - Though
the federal regulation limiting withdrawals from savings and money
market accounts to six per month has been suspended, some
institutions still impose a limit as a way to keep their account
transactional costs low.
 In times of decreasing rates, your APY may go down - Anytime
the Fed lowers rates, the APY on your savings account will also
likely decrease.
 Easy access can make it tempting to dip into savings - If you find
yourself frequently tempted to spend instead of save, the easy
access of a savings account provides little deterrent.
 Could incur fees: Some high-yield savings accounts have a
minimum balance requirement, and if you fall below that on any day
during the month, you'll be charged a monthly maintenance fee. So
be sure to understand your account's rules and stay above any
minimums if at all possible.

Alternatives to High-Yield Savings Accounts

High-yield savings accounts are just one vehicle for earning a competitive
interest rate on money you can put away for the future, with several
alternative types of accounts available for stashing your cash.

High-Yield Savings Accounts vs. Checking Accounts

The easiest alternative to keeping your savings in a high-yield savings

account is to simply keep it in your checking account. While it's true that
this option provides the ultimate in convenience, it two several major
downsides. First, money kept in your everyday checking account is very
easy to spend, so it can be difficult to earmark—and leave untouched—the
funds that you want to save. Second, checking accounts tend not to pay
any interest, or if they do, the rate is a pittance. A high-yield savings
account offers an opportunity to earn substantially more interest on your
money.

 
Transfers between different institutions will take one to three days to
complete, so be sure to keep enough of a cash cushion either in your
checking account or in a linked savings account at that same institution, so
that you won’t run into trouble if you can’t get funds from your high-yield
account for a couple of days.

High-Yield Savings Accounts vs. Money Market Accounts

A money market account operates very much like a savings account, with
the exception that it offers the ability to write checks. In the past, money
market accounts required large balances but paid higher rates than
savings accounts. This has shifted in recent years, however, with savings
and money market accounts both having a variety of required minimum
balances, including no minimum requirement. In addition, high-yield
savings accounts often pay more competitive rates than money markets.

High-Yield Savings Accounts vs. Certificates of Deposit (CDs)

If some of your savings can be socked away and not touched for a period
of time, you may be able to earn a higher rate with a certificate of deposit.
CDs require you to commit your funds to remain on deposit for a number
of months or years, imposing a penalty if you request to withdraw the
funds before the CD’s maturity date. But in exchange, your interest rate is
locked and guaranteed, even if the Fed lowers rates.

High-Yield Savings Accounts vs. I Bonds

The U.S. Treasury offers I Series savings bonds, known as I bonds, whose
rate is indexed to current inflation rates. Though I bonds can sometimes
offer very attractive rates, your return is unpredictable because the interest
rate is recalculated every May and November. I bonds offer other
advantages, such as tax flexibility, but they also require your funds to stay
fully locked for the first 12 months, without exception.

High-Yield Savings Accounts vs. Treasuries

Another way to earn a return on your cash is to lend it to the U.S.
government. This can be done with the purchase of a T-bill, which is a
Treasury note having a duration of 1 year or less. Treasuries are
considered one of the safest investments in the world, but their rates are
not always as high as the best high-yield bank accounts.

High-Yield Savings Accounts vs. Bond Funds

Though it’s difficult to thoroughly research individual corporate or municipal
bond offerings, you can put your money in a bond ETF, which represents a
bundle of various bonds. Though you can easily enter and exit a bond
ETF, bond returns are not guaranteed, and losses in value could erode
your principal investment.

High-Yield Savings Accounts vs. Money Market Funds or Cash Reserve

Accounts
If you have a brokerage account, you can also keep some of your cash in
a money market fund or a cash reserve account. Just be sure you
research the yields, as many of these options pay a far inferior return than
what you can earn from a separate high-yield savings account. It is also
easy to link a high-yield savings account for transferring funds in and out of
your brokerage account.

How to Choose a High-Yield Savings Account

Once you've decided to open up a new high-yield savings account, you'll
want to do your homework to make sure you're choosing the best one for
your needs. Searching for a top APY is a good starting point when
choosing a high-yield savings account, as you'll want to earn a competitive
rate.

But beyond the interest rate, you'll also want to make sure the account
either doesn't have a minimum balance requirement, or has one that you
feel confident you can regularly maintain. You'll also want to check the
rules of the account, such as whether it limits the number of withdrawals
you can make in a month, and if you'll be assessed any fees. Lastly, check
that the bank is an FDIC member (or an NCUA member if it's a credit
union) so that your funds will be federally insured should the bank or credit
union fail.

How to Open a High-Yield Savings Account

Once you've landed on your choice for a new account, the next step is to
open the account online. The bank or credit union will ask you to provide
various personal information, including your social security number, since
your interest earnings will be reportable to the IRS. The bank's account
opening process will also involve security measures designed to ensure
you are who you say you are.

You'll also be presented with one or more options on how to fund your
account. The most common method is by ACH transfer from another bank.
You'll be provided with instructions on how to set this up. Alternatively,
some institutions allow you to make your initial deposit with a debit or
credit card, or even to send in a paper check.

Frequently Asked Questions

 What Is a High-Yield Savings Account?
 Are High-Yield Savings Accounts Safe?
 How Much Will $1,000 Make in a High-Yield Savings Account?
 Do High-Yield Savings Account Rates Change?
 Which Banks Pay the Highest Savings Account Rates?
 Why Don't I Recognize the Banks in Your Rankings?
  Will I Be Taxed on My High-Yield Savings Account?
 Is a High-Yield Savings Account Worth It?
Rate Collection Methodology
Every business day, Investopedia tracks the rate data of about 100 banks
and credit unions that offer high-yield savings accounts to customers
nationwide. We determine daily rankings of the top-paying savings
accounts first and foremost by the annual percentage rate (APY) offered.
To qualify for our lists, the institution must be federally insured (FDIC for
banks, NCUA for credit unions), and the savings account's minimum initial
deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit

unions require you to donate to a specific charity or association to become
a member if you don't meet other eligibility criteria (e.g., you don't live in a
certain area or work in a certain kind of job), we exclude credit unions
whose donation requirement is $40 or more. For more about how we
choose the best high-yield savings accounts, read our full methodology.