A Guide to the Best High-Yield Savings Accounts
April 11, 2023
6 min read
Being financially savvy can mean taking a leap of faith and exploring uncharted territory. It could be the perfect time to begin diversifying your financial portfolio or finally start building long-term savings; either way, both situations foster an atmosphere of excitement!
What Is a High-Yield Savings Account?
High-yield savings accounts are bank accounts that allow you to earn a higher Annual Percentage Yield (APY) than traditional savings accounts. This is especially beneficial for anyone looking to save money, as a higher interest rate allows for a greater return on your investment.
How to Choose a High-Yield Savings Account
Finding the right account for your needs can seem overwhelming, but with a few simple tips, you'll be able to narrow down the options.
Annual Percentage Yield (APY)
Annual Percentage Yield (APY) is a metric used to measure the rate of return for an investment over a period of one year. Compounding interest, which involves earning interest on both the principal and any accumulated interest from previous periods, is factored into the calculation.
APY is typically expressed as a percentage, and it's important to note that it can contain both the interest earned from the investment plus any additional fees associated with the account.
Minimum deposit required
Minimum deposit amounts vary by bank—some require nothing to open an account, while others require $10,000 or more. Decide how much you can realistically invest when comparing high-yield savings products. If you're trying to hit a particular goal, consider how much you're willing to save and over what period of time.
Minimum Balance Required
High-yield savings accounts may appear to offer an attractive APY rate, but it's essential to consider the minimum deposit and balance requirements before investing. Ask yourself if you'll be able to access your money regularly without dipping into the required amount—after all, that determines whether those higher yields are worth going for!
Monthly Maintenance Fees
Savings accounts may come with hidden costs if you don't maintain a certain account balance. Look out for monthly service fees, which banks can charge when your funds dip below an established threshold during each billing cycle.
FDIC Coverage
Safeguard your money by ensuring that any high-yield savings account you open is FDIC insured. This financial security measure prevents your funds from becoming trapped in a bank crisis, leaving them secure and safe no matter the situation.
Top High-Yield Savings Accounts
Looking to maximize your savings? We've got you covered! Our top-rated list will help guide you toward maximizing returns and safety. From Annual Percentage Yield (APY) rates, FDIC insurance coverages, and more, we've considered every factor for picking the best interest-saving accounts in the U.S. today.
Remember that APY may change at any time, so be sure to do thorough research before deciding.
1. Capital One 360 Performance Savings
Capital One 360 Performance Savings is the perfect way for people to securely and conveniently save money without worrying about hidden costs or restrictions. This high-yield savings account provides a competitive interest rate, ensuring that your hard-earned dollars grow substantially over time.
Moreover, it comes with no monthly fees or minimum balance requirements and includes online banking services as well as bill pay capabilities.
- APY: 3.30%
- Fees: $0
- Minimum balance required: $0
- Customer support offered: 24/7 support via chat, phone, or email
- FDIC-insured: Yes
2. Varo Savings Account
Varo is revolutionizing banking with an all-mobile experience that allows users to save and bank entirely through the convenience of their phones or online. Make sure your money works for you, now more than ever, with a Varo Savings Account.
Varo provides a unique savings program designed to assist you in maximizing your money. With an initial APY rate of 3%, those who meet certain criteria can earn up to 5% - simply by making five purchases with their Varo Visa debit card, having direct deposits above $1000 per month, and keeping a savings balance under $5000!
- APY: 3.00% to 5.00%
- Fees: $0
- Minimum balance required: $0; $0.01 to earn savings interest
- Customer support offered: Chat support is available 7 days/week 8 AM to 4:30 PM MT.
- FDIC-insured: Yes
3. Ally Bank Online Savings
Ally offers a streamlined banking experience, providing everything you need in one place. With their high-yield Online Savings Account and Ally checking account together, customers can enjoy even greater benefits than either would offer on its own!
Ally checking and savings accounts offer more than just a generous APY, no account balance minimums, or pesky fees. Through the Allpoint® ATM network of over 43,000 locations nationwide—you can access cash anytime without needing to carry around your debit card! And with an online-only Ally Savings Account option—it's never been easier for savers to achieve their goals.
Ally is a customer favorite for its user-friendly mobile app and around-the-clock support. Whether you need help over the phone, through online chat, or from their app, Ally has it all!
- APY: 3.30%
- Fees: $0
- Minimum balance required: $0
- Customer support offered: 24/7 support via chat, phone, or email
- FDIC-insured: Yes
4. Synchrony High-Yield Savings
Withdrawing your hard-earned funds is an effortless process when you open a Synchrony Bank High Yield Savings account. Not only does this illustrious option offer no minimum balance requirement, monthly fees, or weak APY—but it stands out from the crowd with its convenient array of withdrawal options!
Synchrony Bank is committed to providing its customers with the best services. It offers unique customer benefits, such as around-the-clock account access on its app and complimentary identity theft protection. Plus, take advantage of travel discounts or use free educational webinars!
- APY: 3.75%
- Fees: $0
- Minimum balance required: $0
- Customer support offered: 24/7 support via chat, phone, or email
- FDIC-insured: Yes
5. Marcus by Goldman Sachs High-Yield Online Savings Account
Marcus by Goldman Sachs provides a high-yield online savings account that makes it easier than ever to grow your money! With no fees, minimum deposits, or complicated conditions attached, you can start saving with the assurance of knowing exactly where your finances stand. Plus, mobile device access is easy and convenient, so your funds will follow wherever you go!
Marcus goes above and beyond, offering a mobile banking app that simplifies your savings. Reach any of their U.S. based customer service agents 24/7 for the help you need—whether it be over the phone or online chat! Set up recurring deposits to meet your financial goals while tracking how much interest you've earned this year in real-time.
- APY: 3.30%
- Fees: $0
- Minimum balance required: $0
- Customer support offered: Mobile banking and 24/7 live customer service
- FDIC-insured: Yes
Find the Savings Account That Fits Your Needs
When it comes to picking a high-yield savings account, the best strategy is to shop around and compare rates. Pay attention to fees, minimum balances, and other requirements that may impact how much interest you earn on your deposited funds.
Don't be afraid to ask questions—banks want your business and are typically more than happy to help you choose an account that fits your needs. With a little effort, you can find a high-yield savings account that will aid you in achieving your financial objectives.
