Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.

Personal Finance > Everyday Money
Everyday Money

6 Best High-Yield Savings Accounts 

By James F. Trumm MONEY RESEARCH COLLECTIVE

Best Overall High-Yield Savings Accounts
Best Committed Savings Plan High-Yield Savings AccountsBest Credit Union High-Yield Savings AccountsBest Online-Only Bank High-Yield Savings AccountsBest Cash Management Service High-Yield Savings AccountsBest for Combining Checking and Savings High-Yield Savings Accounts
Discover™ Online Savings Account Logo
CIT Bank Savings Account Logo
PenFed Savings Account Logo
Ally Bank Logo
Betterment Cash Reserve Logo
Varo Bank Savings Accounts Logo
Discover®️ Bank Savings AccountsCIT Bank PenFedAlly BankBetterment Cash ReserveVaro Bank Savings Accounts
Our PartnerOur PartnerOur Partner
APY

3.40%

3.65%

0.45%

0.50%

0.30%

0.20% to 3.00%

Minimum Deposit

None

$100 to open an account

$5

None

$10

$5

Minimum Account Balance

None

Make a $100 each month or maintain a balance of $25,000

None

None

None

None

Other Fees

No fees if you exceed the federal limit of 6 transactions per statement cycle.

Excess activity fee if you exceed the limit of 6 transactions per statement cycle

A fee may be charged if you exceed the limit of 6 transactions per statement cycle.

$10 excessive transactions fee if you exceed the federal limit of 6 transactions per statement cycle.

None

None

Best Overall High-Yield Savings Accounts
Discover®️ Bank Savings Accounts
Our Partner
Open an Account
APY

3.40%

Minimum Deposit

None

Minimum Account Balance

None

Other Fees

No fees if you exceed the federal limit of 6 transactions per statement cycle.

Best Committed Savings Plan High-Yield Savings Accounts
CIT Bank
Our Partner
Open an Account
APY

3.65%

Minimum Deposit

$100 to open an account

Minimum Account Balance

Make a $100 each month or maintain a balance of $25,000

Other Fees

Excess activity fee if you exceed the limit of 6 transactions per statement cycle

Best Credit Union High-Yield Savings Accounts
PenFed
Our Partner
Open an Account
APY

0.45%

Minimum Deposit

$5

Minimum Account Balance

None

Other Fees

A fee may be charged if you exceed the limit of 6 transactions per statement cycle.

Best Online-Only Bank High-Yield Savings Accounts
Ally Bank
Open an Account
APY

0.50%

Minimum Deposit

None

Minimum Account Balance

None

Other Fees

$10 excessive transactions fee if you exceed the federal limit of 6 transactions per statement cycle.

Best Cash Management Service High-Yield Savings Accounts
Betterment Cash Reserve
Open an Account
APY

0.30%

Minimum Deposit

$10

Minimum Account Balance

None

Other Fees

None

Best for Combining Checking and Savings High-Yield Savings Accounts
Varo Bank Savings Accounts
Open an Account
APY

0.20% to 3.00%

Minimum Deposit

$5

Minimum Account Balance

None

Other Fees

None

What are your long-term savings goals—are you working toward being debt-free or saving up for a comfortable retirement? Whatever your reason for saving, the best way is to maximize your gains with the highest interest rates. You can get more out of your savings by investing in a high-yield savings account, which can offer rates twenty-five times higher than traditional accounts.

You have many choices when looking for a personal savings account. To prioritize the features most important to you, consider these questions:

  • Are your savings goals short-term or long-term? Long-term savers will be better off with a high-yield savings account.
  • Do you want ATM access, or would ATMs tempt you to withdraw funds?
  • Are you comfortable with online banking, or do you prefer a physical bank?

Determine your answers before deciding on the best savings account for you. You might not choose the account with the highest annual percentage yield (APY) if other factors, like having access to a physical branch, are more important to you. To help you select the bank that’s most likely to meet your particular needs, we’ve compiled a list of the six hallmark features that savers are most likely to look for and chosen the best high-yield savings account in each category.

Our Top Picks for the Best High-Yield Savings Accounts

We compared options for high interest savings accounts to identify the best ones in each category. We’re comparing only high-yield savings accounts, so consider other types of savings accounts or money market accounts if you’re interested in more traditional account structures.

Our top picks for the best high-yield savings accounts are Varo, Discover, PenFed, Ally Bank, Betterment Cash Reserve, and CIT Savings Builder. Each account offers unique perks and benefits that could be right for you. Let’s take a closer look! Be aware, though, that while the interest rates mentioned below were accurate at the time of writing, they are subject to change at any time, so be sure to check with whatever bank or financial institution you’re considering to see what its latest rates are.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Start saving today with a High-Yield Savings Account
A high-yield savings account keeps your money organized and separated so there's no confusion when it comes time to spend. Select your state to open your account today!
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Open an Account

Open an Account

We chose Discover’s high-yield savings account because not only does it have a high interest rate, it also compounds interest daily. This means you earn money faster with Discover than you do with banks that compound interest less frequently.

Plus, Discover doesn’t charge the service fees that many other banks do. For example, accounts don’t incur an insufficient funds fee if a purchase amount exceeds the amount of funds in your account. Overall, you shouldn’t expect to pay any fees, and Discover doesn’t require a minimum initial deposit or minimum balance to earn interest.

Another factor that puts Discover at the top of our list is its customer service. When you need support, you can connect with a live person instead of the automated help service that most banks employ. In terms of customer satisfaction, Discover ranks second in J. D. Power’s 2021 Direct Banking Satisfaction Study.

Pros
  • 0.50% APY
  • No fees
  • No minimum deposit requirements or balance requirements
  • Great customer service
Cons
  • No physical locations
  • Must be paired with a checking account to access ATMs

Open an Account

What set Ally apart as offering the best online banking high-yield savings account are its savings booster programs, which encourage the account holder to save more. While other institutions have programs like these, Ally provides the most ways to save.

Ally offers some of the best checking accounts as well. By opening both checking and savings accounts with the bank, customers can take advantage of the following savings tools:

  • Recurring transfers: Customers can specify to transfer funds from a checking account to a savings account on a recurring basis. This tool guarantees regular saving so you don’t need to remember to move money into your savings account.
  • Round up: Whenever a customer makes a purchase with their checking account, Ally rounds up to the nearest dollar amount. Then those funds transfer into your savings account.
  • Surprise savings: When a customer links their checking account to their savings account, Ally can analyze spending habits to identify money that isn’t needed for monthly expenses. These funds are automatically transferred to the savings account, where they earn more interest.

As an online bank, Ally offers other conveniences as well. For instance, it’s easy to set up and use an account. In addition, you get a higher interest rate because Ally doesn’t have to maintain physical locations.

Pros
  • 0.50% APY
  • Savings booster programs
Cons
  • Cash deposits unavailable
  • No physical locations

Open an Account

Betterment Cash Reserve is the best cash management account because it offers the highest level of Federal Deposit Insurance Corporation (FDIC) insurance available. Funds in a Cash Reserve account are deposited into up to four banks at a time, so you get four times the usual FDIC coverage.

Plus, unlike its competitors, Betterment allows customers to bucket savings into separate categories, like a kitchen renovation or a weekend getaway, so you always know what you’re saving for. It’s easy to set up auto deposits to save for each category on the list.

As an investment service rather than a bank, Betterment offers unique perks. Because Betterment Cash Reserve is not considered a savings account by the Federal Reserve, you can make more than six withdrawals per month without penalty. And because it isn’t tied to one specific bank, it can negotiate savings rates in the marketplace and pass the savings on to you.

Pros
  • Savings buckets with automated deposits
  • Insurance coverage up to $1 million
  • Unlimited withdrawals
Cons
  • No physical locations
  • Withdrawals and deposits limited to electronic and wire transfers
  • Lower interest rate than other options

Open an Account

Pentagon Federal Credit Union’s Premium Online Savings account is the best credit union option for a high-yield savings account because of its high interest rate. As a not-for-profit credit union, PenFed can offer higher yields and is committed to its members.

Unlike other credit unions, PenFed doesn’t charge a monthly fee for maintenance or any transfer fees. To open an account, simply fill out the membership application on the PenFed website and deposit a minimum of five dollars.

Pros
  • 0.60% APY
  • Commitment to PenFed credit union members
Cons
  • Interest compounded monthly, not daily
  • Must apply for membership

Open an Account

The Varo savings account offers the highest APY rate on the list with its tiered interest rate program. An account holder earns a high APY from the start, but with Varo you have the opportunity to earn up to the highest advertised rate. Simply meet specific requirements, such as depositing $1,000 each qualifying period, and you can watch your interest grow.

Varo Bank is one of the neobanks striving to provide modern banking perks as an alternative to the large traditional banks around the world. For instance, Varo offers several savings tools, such as Save Your Pay and Save Your Change. With these enabled, you can automatically transfer part of your paycheck to your savings account or round up your spending to save the difference.

Pros
  • 0.50% to 3.00% APY
  • Tiered interest rate program
  • Savings tools with Save Your Pay and Save Your Change
Cons
  • Must open a checking account
  • Does not offer joint accounts
  • Limitations for earning the highest interest rate

Other High-Yield Savings Accounts We Considered

In addition to the six best high-yield savings accounts of 2022 covered above, we also considered the following high-yield savings accounts. These are all good account options for saving more money than a traditional savings account. However, they weren’t on our best-of list because of factors like a lower interest rate or restrictions on access to your money if you need it sooner than expected.

When you’re choosing the bank account that’s right for you, identify your most important features and consider these high-yield savings accounts as well:

Best High-Yield Savings Accounts FAQ

What is a high-yield savings account?

chevron-down
chevron-up
High-yield savings accounts are similar to the standard savings account you can get at any bank. While you can access the money at any time, making it more accessible than other investments, you may be limited to a few withdrawals per monthly statement cycle. The difference is that high-yield savings accounts offer a much higher interest rate.

You can get a high-yield savings account at a traditional bank, but an online bank or credit union often offers higher interest rates.

What are the benefits of a high-yield savings account?

chevron-down
chevron-up
These accounts allow you to grow your savings while still giving you direct access to your money if needed. Plus, because the interest rate is so high, you can reach personal finance goals much faster than other methods allow.

What is compound interest?

chevron-down
chevron-up
Compound interest is the interest you earn on interest. Since high-yield savings accounts already have higher interest rates, customers can earn money even faster than by depositing it into traditional savings accounts – or even into the best money market accounts. The power of compounding means that the money that customers earn in one period earns interest in the following one, and so on, allowing the account to grow faster. Compound interest can make a significant difference over time, such as when saving for retirement.

Why are compounding periods important?

chevron-down
chevron-up
Answer this: Would you rather double your money every day or double it every month? Not even high-yield accounts will double your money that quickly, but the question highlights the importance of compounding periods. You'll earn more money the more often your interest compounds.

What is the difference between a high-yield savings account and a traditional savings account?

chevron-down
chevron-up
The biggest difference between these two types of savings accounts is the interest rate. A traditional account may offer an APY rate around 0.07%. On the other hand, a high-yield savings account often earns around 0.50%. Some high-yield accounts offer even more—up to twenty-five times the rate of the Federal Reserve national bank average.

Can you lose money with a high-yield savings account?

chevron-down
chevron-up
There are two ways you can lose money with a high-yield savings account. The first is through inflation. Interest can't always keep up with the economy. When you withdraw money from your account, the purchasing power of each dollar may be lower than when you invested it.

The second way you can lose money is through fees. Some accounts charge a fee if you make too many transactions during a statement period. Other common fees include monthly maintenance fees, atm fees, and inactivity fees.

What do I need to sign up for a high-yield savings account?

chevron-down
chevron-up
Signing up for a high-yield savings account is a quick and easy online process. After you choose your provider, they will tell you what you need. Generally, though, you'll sign up with your personal information, such as your address and phone number, and your social security number. To link your other bank accounts, you'll also need your account numbers and routing numbers.

Can I be denied a high-yield savings account?

chevron-down
chevron-up
It is possible that your chosen provider will deny your application, but this happens in very rare instances. Some reasons you may be denied include:

- Bounced checks on your record

- Unpaid fees within the last five years

- A credit freeze preventing a background check

Are high-yield savings account rates fixed?

chevron-down
chevron-up
High-yield savings accounts have variable APY rates. That means the interest rates fluctuate depending on the economy. If the Federal Reserve changes interest rates, the amount you earn changes as well. This isn't always a bad thing; when the economy is doing well, your rate will increase, and you'll earn money faster!

How We Chose the Best High-Yield Savings Accounts

To create our list, we compared accounts based on several categories that are important to customers. Let’s take a closer look at these factors, which all contribute to improving your savings strategy.

Annual percentage yield rates

For many, the most important factor in choosing a high-yield savings account is the APY rate. This list prioritizes the savings accounts with the best APY rates. The average high-yield APY is between 0.40% and 0.50%.

Ease of use and accessibility

The high-yield savings accounts on our list needed to be easy to use and accessible. We searched for deposit accounts that offer features like mobile apps and online platforms; options to withdraw or direct deposit online, by mailed checks, linking to other accounts and wire transfers; and easy access to ATMs.

Another crucial point is transparency. The best savings accounts will provide clear and accessible terms and conditions.

Maintenance fees or account balance requirements

If you open an account with an institution that charges lots of fees, you reduce the amount of money that you can earn. We chose companies with no maintenance or balance fees, or minimal balance fees. We also picked accounts with low or no minimum balance requirements so that you can start saving right away, no matter how much money you start out with!

Customer service

The best rates and the lowest fees are worth it only if you can get help when you need it. Excellent customer service is a must for any financial institution, which is why we listed companies that offer support through phone, email and chat. A few even offer 24-7 assistance.

Strong financial standing

When you invest in a savings account, you entrust it with not just your hard-earned money but your future security as well. That’s why the institutions on this list have strong ratings from agencies like S&P Global, Fitch Group and Moody’s.

We were also sure to pick only institutions insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). To be insured by these government entities, institutions must apply and meet certain standards. Both organizations will protect up to $250,000 for each customer.

Summary of the Best High-Yield Savings Accounts of 2022

James F. Trumm

James F. Trumm has written and edited numerous articles about consumer finance, travel, literature, and other topics. He’s currently editing a book for the University of Toledo Press and hosting Wanderlust, a radio show about how travel changes people.