July 2023’s Best High-Yield Savings Rates (Up to 5.25% Earned)

July 2023's Best High-Yield Savings Rates (Up to 5.25% Earned)

The Best High-Yield Savings Accounts: Earn More Interest on Your Money

If you’re tired of earning paltry interest rates on your savings, a high-yield savings account may be the answer. While the national average savings account rate is a meager 0.42% APY, there are online banks offering rates as high as 5.25% APY on high-yield savings accounts. In this article, we will explore the best high-yield savings accounts available and provide expert insights on how to choose the right account for your needs.

Compare the Best High-Yield Savings Accounts

When it comes to high-yield savings accounts, there are several categories to consider. We monitor the market daily to find the best options in three main categories: popular brands with good rates, accounts that offer high rates with minimal effort, and the best rates overall. Here are our top picks in each category:

Best Rates on High-Yield Savings Accounts With Minimal Effort

• Milli Account: Milli is a mobile-only banking experience that offers a savings account with a high APY of 5.25%. It also features a savings tool called Jars, which helps you track money for individual goals without creating new accounts. Customer service is available on weekdays, and there are no minimum balance requirements to earn interest.

• Betterment Cash Reserve: Betterment is an online investing platform that offers a high rate of 5.25% APY on its Cash Reserve Account for new customers. The promotional rate is valid until December 31, 2023, and the account functions similarly to a high-yield savings account.

Best Rates Overall

• UFB Priority Savings: UFB Priority Savings stands out for its complimentary ATM card, providing easy access to funds. It has received an A+ rating from the Better Business Bureau (BBB) and offers competitive interest rates.

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• Popular Direct Savings: Popular Direct offers competitive savings and CD rates. While it does not have a checking account, it provides strong rates for customers looking for long-term savings options.

Best Rates on Popular High-Yield Savings Accounts

• TAB Bank High-Yield Savings Account: TAB Bank pays a high interest rate with no monthly service fees. However, it lacks an ATM network, and using an ATM incurs a $2 fee. The BBB has given TAB Bank an A- rating due to legal disputes in the past.

• Salem Five Direct eOne Savings: Salem Five Direct pays an impressive 5.01% APY on its eOne Savings Account. It has a minimum opening deposit of $10 and no monthly service fees. However, eligibility restrictions apply, and it has an A- rating from the BBB due to unaddressed customer complaints.

Ensuring the Safety of Your Savings

It’s important to ensure that your savings are protected by choosing an account with FDIC or NCUA insurance. Even though a few banks failed in recent years, your money is safe in a federally insured financial institution. FDIC and NCUA insurance secure up to $250,000 per depositor in a bank account.

To further increase the safety of your funds and earn higher interest rates, high-yield savings accounts are typically found at online banks or credit unions. These institutions often offer accounts with minimal bank fees, providing you with a better overall banking experience.

High-Yield Savings Account Reviews

UFB Priority Savings

UFB Priority Savings stands out for its complimentary ATM card, ensuring easy access to your funds. The BBB has given UFB Direct an A+ rating, and the bank has a clean record without any recent public scandals. However, existing customers may need to contact customer service to upgrade to the newest interest rates, and cash deposits may not be easy to make.

Popular Direct Savings

Popular Direct is an online bank offering competitive savings and CD rates. While it does not have a checking account, it provides strong rates for customers looking for long-term savings options. However, the mobile app has received lackluster ratings, and Popular Direct does not yet have a rating from the BBB.

TAB Bank High-Yield Savings Account

TAB Bank offers a high interest rate with no monthly service fees. It is an excellent choice if you want to open a savings account with no upfront deposit. However, it does not have an ATM network, and using an ATM will incur a $2 fee. The bank has an A- rating from the BBB due to past legal issues.

Salem Five Direct eOne Savings

Salem Five Direct offers an impressive 5.01% APY on its eOne Savings Account. It has a minimum opening deposit of $10 and no monthly service fees. However, eligibility restrictions apply, and customers with existing accounts at Salem Five Bank may not be eligible. Salem Five has an A- rating from the BBB, with one unresolved customer complaint.

Milli Account

Milli is a mobile-only banking experience that offers a high APY of 5.25% on its Savings Account. It also features a unique savings tool called Jars, which helps you track money for individual goals without creating new accounts. The account has no minimum balance requirements, and customer service is available on weekdays. However, Milli does not accept cash deposits.

Betterment Cash Reserve

Betterment is an online investing platform offering a high rate of 5.25% APY on its Cash Reserve Account for new customers. The promotional rate is valid until December 31, 2023, and the account functions similarly to a high-yield savings account. Betterment has received an F rating from the BBB due to a high volume of customer complaints and unresolved issues.

Western Alliance Bank High-Yield Savings Account

Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from over 20 banks and credit unions. The Western Alliance Bank High-Yield Savings Account is currently the highest-yield savings account on Raisin. However, it is worth exploring other options if you prefer to open a bank account directly or would like to have all your banking services with one institution.

Bank5 Connect Jumbo Savings

Bank5 Connect’s Jumbo Savings Account offers a high-interest rate with no monthly fees. It is a great option for those looking to save large amounts of money. Additionally, the account provides early direct deposit, allowing you to access your paycheck up to two days early. It also offers Depositors Insurance Fund (DIF) protection, ensuring that every penny in your account is secure.

Synchrony High-Yield Savings Account

Synchrony’s High-Yield Savings Account pays a high interest rate with a $0 minimum deposit and no monthly service fees. It also comes with an ATM card, providing quick access to your savings. Synchrony has an A+ rating from the BBB, but it has been involved in controversies regarding customer complaints and unsolicited calls to debtors.

SoFi Checking and Savings

SoFi offers a hybrid Checking and Savings account that combines the features of both types of accounts. With a competitive interest rate and the ability to manage your money in one place, it is a convenient option. SoFi has an A+ rating from the BBB, although it has been involved in a controversy regarding a conflict of interest with its investment advisory services.

Barclays Online Savings Account

Barclays offers a high interest rate, a $0 minimum deposit, and no monthly service fees on its Online Savings Account. However, it does not have a checking account, so it may not be suitable if you want all your banking services in one place. Barclays also has lackluster mobile app ratings and has been involved in a public controversy regarding unregistered securities sales.

Discover Online Savings

Discover’s Online Savings Account offers a high interest rate with a $0 minimum deposit and no monthly service fees. It has an A+ rating from the BBB. However, compared to other big-name online banks, Discover’s rates may be slightly lower.

High-Yield Savings Account FAQs

What To Do When Your Savings Account Interest Changes

Interest rates on high-yield savings accounts closely follow the federal funds rate, making them variable and subject to change. If your savings account’s interest rate undergoes a significant change, it might be worth considering other financial institutions to find a more competitive rate. However, changing accounts may not always be beneficial, especially if the new account’s rate drops after the switch. It is also recommended to explore other savings account options, such as buying savings bonds or setting up a CD ladder, once your emergency fund is established.

Typical Interest Rates on High-Yield Savings Accounts

As of July 2023, the national average interest rate for traditional savings accounts is only 0.42% APY. Brick-and-mortar banks usually offer lower interest rates compared to online banks and credit unions. Therefore, if you prioritize higher interest rates, it is advisable to consider online banks and credit unions.

High-Yield Savings Account Basics

A savings account is an interest-earning bank account that is backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), ensuring the security of your funds. FDIC and NCUA insurance protect up to $250,000 per owner in these accounts.

What To Look For in a High-Yield Savings Account

When choosing a high-yield savings account, carefully review the account disclosures, terms, and conditions. Pay attention to minimum balance requirements, minimum opening deposits, potential fees, and transaction limits. Look for accounts that offer features to help manage your savings, such as goal tracking or cash deposits at ATMs or retailers.

What to Know About the Highest Interest Savings Account Interest Rates

The best savings interest rates are generally found at online banks. Currently, the highest interest savings account on our list offers an APY of 5.25%. However, it’s important to note that some accounts may offer promotional rates exclusively for new customers or impose specific requirements for earning the highest rates.

High-Yield Savings Account Fees

Some savings accounts may charge monthly service fees, while others may not. Be sure to check the account’s terms and conditions, as some fees can be waived if certain requirements are met.

How High-Yield Savings Accounts Work

A savings account is a type of interest-earning bank account with a variable interest rate. The rate can fluctuate over time, and your bank will typically notify you before any rate changes. Savings accounts may also have transfer limits imposed by federal regulations. Generally, you can make up to six transfers from your savings account per month. Exceeding the limit may result in additional fees.

The Different Types of Savings Accounts

There are six types of savings accounts: traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit (CDs), cash management accounts, and specialty savings accounts. High-yield savings accounts are an excellent choice if you prefer banking digitally and want to earn higher interest rates.

Savings Account Glossary

• Annual Percentage Yield (APY): The rate of return you earn over a year on deposit accounts.
• FDIC insurance: The FDIC insures up to $250,000 per depositor in an individual bank account, protecting your funds in case the bank fails.
• NCUA insurance: Similar to FDIC insurance, NCUA insurance protects deposits up to $250,000 per depositor in a credit union account.
• Minimum opening deposit: The amount of money required to open a new account.
• Monthly service fee: A fee that may be charged each month to maintain an account. Some banks may waive this fee if specific requirements are met.

Savings Account Alternatives and Related Products

While high-yield savings accounts offer attractive interest rates, there are other options available. Here are a few alternatives and related products to consider:

• Bread Savings High-Yield Savings Account
• ONE Account
• Bask Bank
• Laurel Road High-Yield Savings
• Capital One 360 Performance Savings
• Apple Savings Account
• Marcus High Yield Online Savings Account
• Panacea Financial High-Yield Savings Account
• M1 High Yield Savings Account
• CIT Bank Platinum Savings
• American Express High-Yield Savings Account
• Primis Savings Account
• Newtek Bank Personal High Yield Savings Account
• Ivy Bank High-Yield Savings Account
• Upgrade Premier Savings
• CIT Bank Savings Connect Account
• Citizens Access Savings
• LendingClub High-Yield Savings Account
• PNC High Yield Savings Account
• MySavingsDirect Savings Account
• Chase Premier Savings Account
• Bank of America Advantage Savings Account
• Huntington Premier Savings Account
• Wells Fargo Platinum Savings Account
• Live Oak Bank Online Savings Account
• TIAA Bank Yield Pledge Online Savings
• Ally Savings Account
• Sallie Mae SmartyPig Account
• Quorum Federal Credit Union HighQ Savings Account
• Empower Personal Cash™
• Axos High Yield Savings Account
• Vio Bank Online High-Yield Savings Account
• Chime Savings Account
• HSBC Direct Savings Account
• CIBC Agility Online Savings Account
• Fitness Bank Fitness Savings Account
• SFGI Direct Savings Account
• Credit Karma Money Save Account
• USAA Savings Account
• Nationwide My Savings Account

Why You Should Trust Us: Experts’ Advice on Choosing the Best High-Yield Savings Account

We consulted several banking and financial planning experts to inform our rankings and provide insights on choosing the best high-yield savings account. Our expert panel includes:

• Tania Brown, certified financial planner at SaverLife
• Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”
• Sophia Acevedo, Certified Educator in Personal Finance and banking reporter at Personal Finance Insider
• Mykail James, MBA, certified financial education instructor, BoujieBudgets.com

Experts emphasize ease of access to funds, account features, fees, and interest rates when evaluating high-yield savings accounts. It is important to consider the level of transactions you expect and whether the account offers features that align with your savings goals. Additionally, paying attention to interest rates and fee structures can help you choose the best high-yield savings account for your needs.

Our team spent extensive time researching and comparing savings account features, fees, and fine print to provide you with a comprehensive and trustworthy review. Trust Personal Finance Insider’s ratings methodology to guide you in making informed decisions about checking, business checking, savings, and money market accounts.

Ultimately, choosing the best high-yield savings account requires evaluating your specific needs and preferences. Consider the features, interest rates, and fees of each account to determine which one best suits your financial goals. Remember to review the account terms, minimum balances, and any other relevant factors when making your decision.

• Alyssa Powell
• Best high yield savings accounts
• Personal Finance Insider