Best High-yield Savings Accounts of U.S - December 2023

Best High-yield Savings Accounts of December 2023

High-yield savings accounts present an opportunity for accelerated savings growth compared to traditional savings accounts. Whether your goal is to establish a robust emergency fund or set aside funds for various financial objectives, high-yield savings accounts stand as an appealing choice.

As of December 2023, the national average savings account interest rate, reported by the Federal Deposit Insurance Corporation (FDIC), stands at a mere 0.46%. However, there are far more lucrative options available through the best high-yield savings accounts.

Popular Direct, Select Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes

My Banking Direct, High Yield

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: Yes
• CDs Available: Yes

North American Savings Bank

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes (Not available to residents of Kansas and Missouri)

BrioDirect, High-Yield Savings

• Minimum Ongoing Balance: $25 to earn APY
• Monthly Fee: None; $5 with paper statements
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes

BluPeak Credit Union

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None with $200 ongoing balance; otherwise, $5
• ATM Card: Yes
• Mobile Check Deposit: Yes
• Checking Accounts: Yes
• CDs Available: Yes 

Vio Bank, Cornerstone MM Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes 

Ivy Bank, High-Yield Savings

• Minimum Ongoing Balance: $2,500 to earn APY
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes

TAB Bank, High Yield Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: Yes
• CDs Available: Yes

TotalDirectBank, Money Market Account

• Minimum Ongoing Balance: $2,500 to earn APY
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes 

Milli

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: Yes
• Mobile Check Deposit: No
• Checking Accounts: No
• CDs Available: No 

Newtek Bank, Personal HY Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: No
• Checking Accounts: No
• CDs Available: Yes

UFB Direct, Secure Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: Yes
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: No

Valley Direct, High-Yield Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: No
• CDs Available: Yes

Evergreen Bank Group, HY Savings

• Minimum Ongoing Balance: Any amount
• Monthly Fee: None
• ATM Card: Yes
• Mobile Check Deposit: Yes
• Checking Accounts: Yes
• CDs Available: Yes

CFG Bank, HY Money Market

• Minimum Ongoing Balance: $1,000 to earn APY
• Monthly Fee: None with a $1,000 ongoing balance; otherwise, $10/month
• ATM Card: No
• Mobile Check Deposit: Yes
• Checking Accounts: Yes
• CDs Available: Yes 

What Savings Account Has the Highest Yield?

The array of high-yield savings accounts, Popular Direct's Select Savings claims the top spot with an impressive 5.40% Annual Percentage Yield (APY) and a modest minimum opening deposit of $100.

This account stands out for its attractive combination of a competitive yield and accessibility, making it an appealing option for those looking to maximize their savings potential. As you explore these options, keep in mind that each account offers distinct features, so it's essential to align your financial goals with the account that best suits your needs.

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How to Choose a High-Yield Savings Account?

Choosing a high-yield savings account requires careful consideration to ensure it aligns with your financial goals and preferences. Here's a detailed guide on how to choose the right high-yield savings account:

Research Interest Rates

Begin your financial journey by researching and comparing the interest rates offered by various high-yield savings accounts. Look for accounts that provide competitive Annual Percentage Yields (APYs) to maximize your savings. In the midst of this exploration, keep in mind the average interest rate for savings accounts, ensuring that your chosen account not only stands out for its competitiveness but also aligns with or surpasses the general market standard."

Consider Minimum Deposit Requirements

Take note of any minimum deposit requirements. Some accounts have no minimum deposit, making them accessible to a broader range of savers, while others may require a specific initial deposit.

Evaluate Fees

Assess the fee structure of each account. Look out for monthly maintenance fees and other charges that could potentially offset your interest earnings. Opt for accounts with minimal or no fees to optimize your savings.

Review Compounding Frequency

Understand how often interest is compounded, as this can impact your overall earnings. Some accounts compound interest daily, weekly, or monthly. Choosing an account with more frequent compounding can help your savings grow faster.

Examine Digital and Customer Experience

Consider the digital and customer experience offered by each bank. A user-friendly online interface and good customer service can enhance your overall banking experience.

Check Minimum Balance Requirements

Be aware of any minimum balance requirements to avoid monthly fees. Opt for accounts that align with your financial situation and don't impose burdensome balance restrictions.

Ensure National Availability

Confirm that the high-yield savings account is nationally available. This ensures that you can open and manage the account regardless of your location.

Understand Account Terms

Familiarize yourself with the terms and conditions of each account. Be aware of any stipulations related to earning the APY, and check for complex tier structures that might affect your overall satisfaction with the account.

Explore Additional Benefits

Look for additional benefits offered by the bank, such as easy fund transfers, mobile banking features, and any promotional offers. These extras can add value to your overall banking experience.

Read Reviews and Ratings

Before finalizing your decision, read reviews and ratings of the high-yield savings accounts you are considering. Insights from other customers can provide valuable information about the bank's reliability and customer satisfaction.

How to Open a High-yield Savings Account?

Opening a high-yield savings account, as well as a regular savings account, is a straightforward process, but it's essential to follow the necessary steps to ensure a smooth and secure account setup. Here's a detailed guide on the steps to open a high-yield savings account, and concurrently, you can open a regular savings account using a similar process.

Research and Compare

Start by researching and comparing high-yield savings accounts from different banks or credit unions. Consider factors such as interest rates, fees, minimum deposit requirements, and account features.

Choose a Bank or Credit Union

Based on your research, select a financial institution that offers the high-yield savings account that best meets your needs.

Visit the Bank's Website

Go to the official website of the chosen bank or credit union. Navigate to the section related to savings accounts.

Review Terms and Conditions

Carefully read the terms and conditions associated with the high-yield savings account. Pay attention to interest rates, fees, minimum balance requirements, and any other relevant details.

Gather Required Documents

Prepare the necessary documents for the account application. This may include personal identification (driver's license, passport), Social Security number, and possibly proof of address.

Initiate the Application

Look for an option to open a new account or apply for a high-yield savings account on the bank's website. This could be labeled as "Open an Account" or something similar.

Complete the Online Application

Fill out the required information in the online application form. This typically includes personal details, contact information, and financial information.

Submit the Application

Once you've filled out the application, review it for accuracy, and then submit it through the bank's secure online system.

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What is a High-yield Savings Account?

A high-yield savings account is a type of savings account that offers a significantly higher Annual Percentage Yield (APY) compared to traditional savings accounts. These accounts provide savers with the opportunity to earn more on their deposited money while still benefiting from the security of a federally insured account.

Traditional savings accounts, often offered by brick-and-mortar and larger banks, typically yield very low-interest rates, often around 0.01% APY, whereas high-yield savings accounts can offer hundreds of times more in-interest earnings.

What Are the Pros and Cons of High-Yield Savings Accounts?

Pros of High-Yield Savings Accounts

• Higher interest rates mean more earnings on your savings.
• Federally insured for added security.
• Easy access to funds when needed.
• Often no minimum balance or monthly fees.
• Online access for convenient management.

Cons of High-Yield Savings Accounts

• Interest rates can change.
• Some accounts limit monthly withdrawals.
• Rates may not always beat inflation.
• Limited transaction capabilities.