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Best High-Yield Savings Accounts Of November 2022

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Fact Checked

Michael Benninger
editor

Fact Checked

Updated: Nov 1, 2022, 4:15pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

High-yield savings accounts can help you grow your savings faster than traditional savings accounts. Whether you want to build an emergency fund or sock away money toward other financial goals, a high-yield savings account is a promising option. We’ve analyzed online savings accounts at banks and credit unions to find the best choices available, based on interest rates, fees and other factors.

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Best High-Yield Savings Accounts

We compared 73 online savings accounts at 53 nationally available banks and credit unions to find some of the best high-yield savings accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of Oct. 28, 2022.


Varo Savings Account

Varo Savings Account
4.8
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

2.00% to 5.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Varo Savings Account
Learn More

On Fiona.com's Website

Annual Percentage Yield

2.00% to 5.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

In 2020, Varo became the first U.S. consumer fintech company to receive a national bank charter, allowing it to offer FDIC insurance and expand its banking services.

Varo Bank’s Saving Account earns a competitive 2.00% APY without charging a monthly fee and up to 5.00% APY by meeting specific requirements each month (see Details). And there is no account minimum to worry about.

If you can meet the requirements, the first $5,000 of your savings will earn one of the highest savings APYs available at any bank.

Varo customers also have access to additional tools to help you automate your savings. The bank also offers several ways to receive support online and by phone.

Read our full Varo Bank Review

Pros & Cons
  • Very competitive APY
  • Automatic savings tools
  • No fees or minimum deposit requirements
  • Requires a Varo Bank Account to open a Varo Savings Account
  • Highest APY available only on daily balances of $5,000 or less
  • Must meet monthly requirements to earn the highest available APY
Details

Varo offers a higher APY to customers who maintain an average daily balance of $5,000 or less. Varo calculates interest daily. In July 2020, Varo became the first challenger bank to receive a national bank charter, enabling it to offer a broader range of products and services in the future. You can earn up to 5.00% APY by meeting the following requirements:

  • Receive total direct deposits of $1,000 or more each qualifying period.
  • Keep a daily savings balance of $5,000 or less for the entire calendar month.
  • Keep your Bank Account and Savings Account balances above or equal to $0.00 for the entire calendar month.

Consumers Credit Union Smart Saver

Consumers Credit Union Smart Saver
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

0.25% to 2.00%

Minimum Deposit Requirement

$5

Monthly Maintenance Fee

$0

Consumers Credit Union Smart Saver
Learn More

On Consumers Credit Union's Website

Annual Percentage Yield

0.25% to 2.00%

Minimum Deposit Requirement

$5

Monthly Maintenance Fee

$0

Why We Picked It

The Consumers Credit Union Smart Saver Account offers a high-yield alternative for individuals who prefer keeping their funds at a credit union. Yields earned on credit union accounts are referred to as dividends rather than interest. The account offers decent dividend earnings for everyone, but customers with a CCU checking account who meet certain monthly requirements can earn an impressive 2.00% (see Details).

As with other credit unions, membership is required to bank with Consumers Credit Union. Luckily, you can join by paying a one-time, nonrefundable $5 fee and depositing and maintaining a balance of at least $5 in your Membership Share Savings Account.

Consumers Credit Union Review.

Pros & Cons
  • Competitive APY
  • Mobile banking app is available for iOS and Android
  • Few fees
  • $1,000 monthly deposit limit on 2.00% earnings
  • CCU Checking account required to earn 2.00%
  • Physical branches only located in greater Chicago area
Details

Yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited monthly. Consumers allows you to earn 2.00% on your existing balance and on deposits of up to $1,000 per month. Consumers transfers any deposit amounts exceeding $1,000 in a given month into your Membership Share Savings account at the end of the day the transaction occurs.

To earn 2.00%, you have to meet the following requirements:

  • Deposit a minimum of $50, up to a maximum of $1,000, to the Smart Saver account each month.
  • Have direct or mobile deposits or ACH credits totaling $500 or more each month to a CCU Checking account.
  • Enroll in eDocuments.

If you don’t meet the minimum qualifications during a given month, the dividend rate drops to a lower APY. There is no maximum total balance you can accumulate, so long as you make monthly deposits of $1,000 or less and meet the other requirements.

Sallie Mae Bank SmartyPig Account

Sallie Mae Bank SmartyPig Account
4.4
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

3.10%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Sallie Mae Bank SmartyPig Account
Learn More

On Fiona.com's Website

Annual Percentage Yield

3.10%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

Sallie Mae’s SmartyPig Account not only offers a competitive APY but also comes with access to savings tools to create and track financial goals. There is no minimum balance requirement, and no monthly fees are associated with this high-yield savings account.

The SmartyPig Account is a great choice for individuals with smaller balances.

Read our full Sallie Mae Bank Review.

Pros & Cons
  • Competitive APYs
  • Easy to create and track savings goals
  • No monthly fees or balance requirements
  • Tiered interest rate structure with lower rates on higher balances may deter some high balance savers
  • Mixed reviews of its two mobile apps
Details

The SmartyPig account pays 3.10% APY on balances from $0.01 to $10,000, 3.10% APY on balances from $10,000.01 to $50,000 and 3.10% APY on balances greater than $50,000. Interest is compounded daily and credited monthly.

Axos Bank High Yield Savings Account

Axos Bank High Yield Savings Account
3.9
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

Up to 0.61%

Minimum Deposit Requirement

$250

Monthly Maintenance Fee

$0

Axos Bank High Yield Savings Account
Learn More

On Axos Bank's Website

Annual Percentage Yield

Up to 0.61%

Minimum Deposit Requirement

$250

Monthly Maintenance Fee

$0

Why We Picked It

Axos Bank’s High Yield Savings account is a top choice for savers with smaller balances. The account’s highest 0.61% APY is reserved for balances under $25,000. Balances between $25,000 and $100,000 earn 0.25% APY. Balances of more than $100,000 earn 0.15% APY.

This high-yield savings account has a higher opening deposit requirement than other accounts on this list ($250), but there are few fees to worry about when you bank with Axos.

An ATM card is available on request that can be used at more than 91,000 surcharge-free ATMs throughout the U.S.

Read our full Axos Bank Review.

Pros & Cons
  • Daily compounding interest
  • Modest initial deposit requirement
  • Very competitive APY on balances of less than $25,000
  • Few fees
  • Referral bonus program
  • Other banks and credit unions may offer higher APY
  • No physical branches available
Details

Interest is compounded daily and credited monthly. 

Marcus by Goldman Sachs High-Yield Online Savings Account

Marcus by Goldman Sachs High-Yield Online Savings Account
3.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

3.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Marcus by Goldman Sachs High-Yield Online Savings Account
Learn More

On Fiona.com's Website

Annual Percentage Yield

3.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Why We Picked It

The Marcus by Goldman Sachs High-Yield Online Savings Account earns a competitive 3.00% APY on all balances, up to limits. The account features no fees and no minimums. Marcus also offers same-day transfers from other financial institutions up to $100,000.

Marcus customers also get access to its mobile app and Insight tools that help you set and track progress toward financial goals. Customers can receive Savings Specialist support by phone seven days a week.

To fund your Marcus savings account, you can transfer funds from another linked account, set up direct deposit, mail a check or send a domestic wire transfer.

Deposits are limited to $1 million per account, and $3 million across multiple Marcus accounts, including CDs.

Read our full Marcus By Goldman Sachs Review.

Pros & Cons
  • Competitive interest rate
  • No minimum deposit requirement
  • No monthly fees
  • Mobile and online access 24/7
  • No physical locations
  • No mobile check deposit
Details

Interest is compounded daily and credited monthly.

What Is a High-Yield Savings Account?

A high-yield savings account is a type of savings account that typically offers higher interest rates than a traditional savings account. You can generally find high-yield savings accounts at online banks and credit unions. These financial institutions normally don’t carry the overhead costs or profit-margin requirements of a traditional brick-and-mortar bank, allowing them to pass those savings on to customers through higher rates and lower fees.

Interest rates vary based on several factors, but it’s not uncommon to find high-yield savings accounts that offer up to 2.00% APY or more. A high-yield savings account may earn as much as 25 times the national average rate on standard savings accounts.


How Do High-Yield Savings Accounts Work?

High-yield savings accounts work the same as traditional savings accounts, except they typically earn higher interest rates and carry lower or no monthly fees. Common features of high-yield and traditional savings accounts include FDIC protection and transaction limits.


How To Pick a High-Yield Savings Account?

Choosing the best high-yield savings account isn’t always obvious, so comparing accounts will help you find the best option. Here are some factors to consider before opening an account.

Interest Rate

Perhaps the most important factor when choosing a high-yield account is the interest rate. Earning a higher interest rate will help maximize your savings more quickly.

Deposit Requirements

Some accounts require a minimum opening deposit for a new account. You may also need to maintain a specific balance to earn interest or avoid monthly fees.

Account Fees

Fees can cancel out interest earned on your savings. Check the account’s fee schedule to determine if you’ll be charged a monthly service fee or other fees. Some banks will waive fees if you keep a certain amount in your account.

Compounding Frequency

Interest on a savings account can compound daily, weekly, monthly, quarterly or annually, depending on the bank. When interest compounds, you earn interest on your interest. Choosing an account that compounds more frequently can help you earn more interest over time.


How To Open a High-Yield Savings Account

You can open a high-yield savings account relatively quickly. Once you’ve found an account that matches your needs, you’ll need to fill out an online application. The bank may ask for this specific information to verify your identity during the application process:

  • Name
  • Address
  • Email address
  • Phone number
  • Date of birth
  • Social Security number
  • Number from your driver’s license or other government-issued photo ID
  • Funding source account information

If you’re opening a joint account, both parties will need to provide personal and financial information.

Once the account is approved, you can fund it using a linked bank account or other acceptable methods.


Best Ways To Use a High-Yield Savings Account

Because of their earning potential, high-yield savings accounts are excellent for reaching savings goals. Having a specific account for savings goals allows you to keep those funds separate from your everyday spending account. You can use a high-yield savings account to save for a variety of goals, including:

  • An emergency fund
  • Upcoming vacations
  • A wedding
  • Home renovations
  • Home furnishings
  • A down payment on a home
  • A new car
  • Educational expenses

High-yield savings accounts are ideal for short-term financial goals, but they’re not good for holding your retirement savings. A tax-advantaged retirement or investment account typically offers better returns and tax savings not found with high-yield savings accounts.

Bottom Line

If you’re looking for a way to maximize your savings, a high-yield savings account is a smart option. Compare several accounts to find the best rates, and look at other features, like fees and deposit requirements, to determine the best choice. Since most high-yield savings accounts are found online, make sure you’re comfortable banking digitally before you open an account.


Summary: Best High-Yield Savings Accounts

Account Forbes Advisor Rating Annual Percentage Yield Minimum Deposit Requirement Monthly Maintenance Fee LEARN MORE
Varo Savings Account 4.8 5-removebg-preview 2.00% to 5.00% $0 $0 Learn More On Fiona.com's Website
Consumers Credit Union Smart Saver 4.7 4.5-removebg-preview-1 0.25% to 2.00% $5 $0 Learn More On Consumers Credit Union's Website
Sallie Mae Bank SmartyPig Account 4.4 4.5-removebg-preview-1 3.10% $0 $0 Learn More On Fiona.com's Website
Axos Bank High Yield Savings Account 3.9 4-removebg-preview-2 (1) Up to 0.61% $250 $0 Learn More On Axos Bank's Website
Marcus by Goldman Sachs High-Yield Online Savings Account 3.6 3.5-removebg-preview 3.00% $0 $0 Learn More On Fiona.com's Website

Frequently Asked Questions (FAQs)

What is a high-interest savings account?

A high-interest savings account is a savings account that typically earns a much higher interest rate than a traditional savings account. High-yield accounts are usually found at online banks and credit unions.

What are the pros and cons of high-yield savings accounts?

A high-yield savings account offers several benefits over a traditional savings account. It typically earns a higher interest rate and carries low or no monthly fees. But because they are typically available only through online banks, high-yield accounts generally don’t offer in-person support. Also, high-yield savings accounts have variable interest rates, so your higher rate could change at any time.

How do you calculate interest on a high-yield savings account?

The quickest way to calculate compound interest is with a compound interest calculator. But if you want to do the math yourself, this guide to calculating compound interest includes a formula and examples.

Which high-yield savings account is best?

The best high-yield savings accounts earn competitive interest rates, come with no fees and address your needs. The best account depends on your banking needs and can vary from person to person.

Why did rates on high-yield savings accounts go down?

Interest rates on high-yield savings accounts dropped in recent years partially because rates on loans dropped during the Covid-19 pandemic. Banks typically keep APYs lower than rates on lending products to ensure profitability. But now that the Fed has repeatedly raised interest rates to fight inflation, APYs are rising rapidly.

How often do high-yield savings accounts pay interest?

Interest payouts on high-yield savings accounts typically occur on a monthly basis but may depend on the financial institution.

Is a high-yield savings account worth it?

A high-yield savings account is an effective savings vehicle if you have funds you want to set aside for short-term financial goals or needs. It’s not a replacement for a retirement or tax-advantaged investment account for long-term retirement savings, but it’s a great option for short-term savings goals.


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