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Best High-Yield Savings Accounts in USA 2023

Best High-Yield Savings Accounts

If you’re looking to earn more on your savings without taking on additional risk, a high-yield savings account is a great option. These accounts offer annual percentage yields (APY) that are significantly higher than the national average, making it possible to earn more on your money over time.

In this article, we will highlight the best high-yield savings accounts currently available and provide tips on how to choose the right account for your needs.

Best High-Yield Savings Account Rates

The top high-yield savings account rates in the country are listed below in order of APY. Where more than one institution has the same rate, we’ve ranked accounts by those requiring the smallest minimum ongoing balance:

  1. MySavingsDirect – 4.35% APY
  2. UFB Direct – 4.11% APY
  3. Salem Five Direct – 4.10% APY
  4. Customers Bank – 4.05% APY
  5. CFG Bank – 4.05% APY
  6. Bask Bank – 4.03% APY
  7. Vio Bank – 4.01% APY
  8. Popular Direct – 4.01% APY
  9. Valley Direct – 4.00% APY
  10. First Foundation Bank – 4.00% APY

Here are some key details about each of these top high-yield savings accounts:

MySavingsDirect:

This account offers a 4.35% APY with no minimum balance requirements and no monthly fees. It does not offer an ATM card or mobile check deposit and does not have any checking accounts available. However, it does offer CDs.

UFB Direct:

This account offers a 4.11% APY with no minimum balance requirements and no monthly fees. It does offer an ATM card and mobile check deposit but does not have any checking accounts available.

Salem Five Direct:

This account, called the eOne Savings, offers a 4.10% APY with a $10 minimum initial deposit and no minimum ongoing balance requirements. It does not offer an ATM card but does offer mobile check deposits and connected checking accounts. It also offers CDs.

Customers Bank:

This account, called the High-Yield Digital Savings Account, offers a 4.05% APY with a one-penny minimum initial deposit and no minimum ongoing balance requirements. It does not offer an ATM card but does offer mobile check deposits and connected checking accounts. It also offers CDs. Note: Consumer’s Bank accounts are not available to residents of Arizona and New Mexico.

CFG Bank:

This account, called the High Yield Money Market Account, offers a 4.05% APY with a $1,000 minimum initial deposit and a $1,000 minimum ongoing balance requirement to earn the stated APY. There are no monthly fees with a $1,000 ongoing balance, but a $10/month fee is charged otherwise.

It does not offer an ATM card but does offer mobile check deposits. It also offers CDs. Note: Although this account has “money market” in its name, it offers no check-writing privileges and instead operates like a savings account.

Bask Bank:

This account, called the Interest Savings Account, offers a 4.03% APY with no minimum balance requirements and no monthly fees. It does not offer an ATM card but does offer mobile check deposits. It does not have any checking accounts available.

Vio Bank:

This account, called the High Yield Online Savings Account, offers a 4.01% APY with a $100 minimum initial deposit and no minimum ongoing balance requirements. It does not offer an ATM card or mobile check deposit and does not have any checking accounts available.

Popular Direct:

This account offers a 4.01% APY with a $5,000 minimum initial deposit and no minimum ongoing balance requirements. It does not offer an ATM card or mobile check deposit and does not have any checking accounts available.

Valley Direct:

This account offers a 4.00% APY with a $500 minimum initial deposit and no minimum ongoing balance requirements. It does not offer an ATM card or mobile check deposit and does not have any checking accounts available.

First Foundation Bank:

This account offers a 4.00% APY with a $1,000 minimum initial deposit and no minimum ongoing balance requirements. It does not offer an ATM card or mobile check deposit and does not have any checking accounts available.

How to Choose a High-Yield Savings Account

When shopping for a high-yield savings account, it’s important to consider the following factors:

APY:

The APY is the most important factor to consider when choosing a high-yield savings account. The higher the APY, the more interest you’ll earn on your money.

Minimum balance requirements:

Some high-yield savings accounts have minimum balance requirements that you’ll need to meet in order to earn the advertised APY. Be sure to check these requirements before opening an account.

Fees:

Some high-yield savings accounts charge fees for certain services, such as monthly maintenance fees or ATM usage fees. Be sure to understand any fees that may be associated with the account before opening it.

Accessibility:

Consider how easily you’ll be able to access your money. Some high-yield savings accounts offer ATM access or check-writing capabilities, while others may not.

Additional features:

Some high-yield savings accounts may offer additional features, such as the ability to link to a checking account or the option to open a CD. Consider whether these features are important to you when choosing an account.

By considering these factors, you can find the best high-yield savings account for your needs and start earning more on your money.

FAQ

What is a high-yield savings account?

A high-yield savings account is a type of savings account that offers a higher annual percentage yield (APY) than traditional savings accounts. This means you’ll earn more interest on your money over time.

How do high-yield savings accounts work?

High-yield savings accounts work just like regular savings accounts. You deposit money into the account, and the bank pays you interest on that money based on the APY. The higher the APY, the more interest you’ll earn.

Is high-yield savings account safe?

Yes, high-yield savings accounts are generally safe. They are FDIC-insured, which means your deposits are insured up to $250,000 per bank.

Are there any downsides to high-yield savings accounts?

One potential downside of high-yield savings accounts is that they may have higher minimum balance requirements than traditional savings accounts. Additionally, some high-yield savings accounts may charge fees for certain services, such as ATM usage or monthly maintenance fees.

How do I choose the best high-yield savings to account for me?

When choosing a high-yield savings account, consider factors such as the APY, minimum balance requirements, fees, and accessibility. Compare accounts from different financial institutions and consider your own financial goals and needs when making a decision.

Can I have more than one high-yield savings account?

Yes, it is possible to have more than one high-yield savings account. This can be a good strategy for earning more on your money, as long as you are able to meet the minimum balance requirements for each account and manage your accounts effectively.

Can I withdraw money from a high-yield savings account?

Yes, you can typically withdraw money from a high-yield savings account at any time. Some accounts may have restrictions on the number of withdrawals you can make per month, but you should still have access to your money when you need it.

Are there any tax implications for a high-yield savings account?

Interest earned on a high-yield savings account is generally subject to federal income tax. However, some states may offer tax exemptions for interest earned on certain types of accounts, such as those designated for education or medical expenses. It’s important to consult a tax professional or the IRS for information on how interest earned on a high-yield savings account may be taxed.

Can I use high-yield savings account for long-term savings?

Yes, a high-yield savings account can be a good option for long-term savings. A higher APY can help you earn more on your money over time, which can be particularly beneficial for a long time.

Can I use high-yield savings account for emergency savings?

Yes, a high-yield savings account can be a good option for emergency savings. The ability to easily access your money when needed and the higher APY can make it a good choice for setting aside funds for unexpected expenses or emergencies. Just be sure to consider any potential fees or restrictions on withdrawals when using high-yield savings account for emergency savings.

Conclusion

In conclusion, a high-yield savings account can be a great way to earn more on your money without taking on additional risk. With APYs that are significantly higher than the national average, these accounts can help you grow your savings faster.

When choosing a high-yield savings account, be sure to consider the APY, minimum balance requirements, fees, and accessibility to find the best option for your needs. With careful planning and the right high-yield savings account, you can start earning more on your money and working towards your financial goals.

Also Read: How To Increase Credit Score Quickly in 2023

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