Best High-Yield Savings Account | January 2023
High-yield savings accounts offer high-interest savings paying many times higher than the national average. But who pays the most and offers the best overall service? Find out with SuperMoney.
What is a high-yield savings account?
A high yield savings account is an account that offers you a safe place to deposit your money and earn a higher interest rate than what regular savings accounts offer.
Depending on where you live, you might also hear the term high-interest savings accounts. They're the same thing. They are savings accounts that offer a much higher APY than regular savings accounts.
Alternatives to savings accounts
Savings accounts can be an excellent option if you're looking for a low-risk liquid investment vehicle, but there are alternatives that may provide better terms. If you're planning to open a savings account, you may want to consider other options, such as CDs, money market accounts, and high-yield checking accounts.
Certificates of deposit
CDs offer some of the highest interest rates available for deposit accounts insured by the FDIC. They can be a risk-free option if you're investing money you will need for a specific purpose, such as a down payment on a mortgage or a new car, and you don't want to risk losing any of your savings.
How to compare the best high yield savings accounts
Here are some of the factors to consider when comparing high-yield savings accounts.
- APY. Your annual percentage yield is going to be the main reason to get a high yield savings account. The higher the APY, the better.
- Bank/Credit Union. Most people want to get a high yield savings account from the same bank they have a checking account with. However, online savings accounts can often offer better accounts for people who want a higher interest rate.
- ATM Access. Does your high yield savings account come with a debit card? If not, you might not be able to get money from an ATM in the event of an emergency.
- Maintenance Fees. Look for savings accounts that don't charge a maintenance fee or that allow you to waive it by meeting certain requirements, such as linking a checking account or having a minimum balance.
- Withdrawal Rules. Many high yield savings accounts will only allow a set number of withdrawals or transfers per month. This can make things hard for people who want to rely on it for emergency fund spending that could hit at multiple times a month.
- Additional Monthly Fees. If your bank account has any other fees you need to be aware of, we'll keep an eye out for them. Monthly fees are a pain!
- Opening Deposit. Do you have to have a minimum opening deposit amount? That can make a difference.
- Minimum Balance Requirement. Most high yield savings accounts will have a minimum balance that they expect you to keep up. This can also be called a minimum deposit. Not having that balance can open you up to maintenance fees or penalties.
- FDIC Insured. Having your money in an FDIC-insured bank means that you won't have to worry about it going up in smoke. Your money is always safer in an FDIC-insured bank.
Frequently asked questions about high yield savings accounts
How much interest will you earn a year on $1,000 in a high-yield savings account?
Your earnings will depend on the APY your savings account provides. To illustrate, if your high-yield savings account pays 0.10% APY, you would earn $1 a year on $1,000. If your account pays 2% APY, you would earn $20 in a year.
The amount of money you can earn with a high-yield savings account can change over time depending on the APY your bank offers.
Are high-yield savings accounts FDIC-insured?
Typically, yes. If you have an account with a bank insured by the Federal Deposit Insurance Corporation, your savings are FDIC-insured. You can filter for this using SuperMoney's savings accounts comparison tools.
Notice the FDIC will only insure up to $250K per depositor and ownership category. So if you have more than $250K in an individual savings account, it will not be insured.
Should you get high yield savings accounts from online banks?
You can find great high-yield savings accounts with online-only and brick-and-mortar banks, so it's entirely up to you. Since they do not have to worry about the costs that come with brick-and-mortar branches, online savings accounts often offer lower fees and higher rates.
What is the best high yield savings account?
The best high yield account will change from person to person, not to mention from bank to bank. It's all about APY you get, the fees you pay, and the perks and benefits you receive. If you're looking for the best high yield savings account, the list above is a good place to start. The highest APY offered by savings accounts on this page is 4.15%.