Everyone needs a high interest savings account. It doesn’t matter if you’re in the middle class or very wealthy – you need a place for your emergency fund or short-term savings.
A high yield savings account allows your money to make money until you need it. They pay a much higher annual percentage rate than average (the average savings account pays just 0.10% APY) and don’t have early withdrawal penalties like CDs have.
So don’t stash your cash under a mattress earning nothing, put your money to work with the best high yield savings accounts.
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Before Savings Accounts, Consider I Bonds
Before we begin I’d be remiss not to mention I Bonds, which are savings bonds issued by the U.S. Department of the Treasury and fully backed by the full faith and credit of the U.S. government.
Currently, I Bonds are paying an incredible 6.89% APY. Interest rates are determined by inflation, which as you know has been sky-high lately. While inflation is bad for the economy, it’s great for I Bonds.
Although you can only buy up to $10,000 per calendar year and I Bonds have a minimum one year holding period, they make a great option for a short to medium-term emergency fund or a place to park your cash.
Ok, let’s get started on the list of the best savings accounts that give the highest yield.
13 Best High Yield Savings Accounts in 2022
The following savings accounts offers the best interest rates with no catch. If you’re looking for a bank account that earns you the highest interest rate with no requirements, these are it.
All accounts listed are FDIC insured, so your hard-earned money is safe.
There are other savings accounts with interest rates as high as 4.10% APY that we list in the second section, but they have additional things you need to consider. Still, take a look at them before making a decision on which account to open.
1. American First Credit Union – 4.00% APY
American First Credit Union opened its doors 70 years ago as a not-for-profit financial institution supporting everyday workers. Today, this Southern California-based credit union has expanded nationwide and offers an industry-best rate of 4.00% APY on their Money Market Deposit Account.
- 4.00% APY is 26.7x higher than national average.
- Federally insured by NCUA up to $250,000.
- No fees and no minimum balance requirements ($1 minimum to open)
- 24/7 online access to funds.
2. UFB Direct – 3.91% APY
UFB Direct, an online division of Axos Bank, offers a savings account called UFB High Rate Savings. This account is geared towards savers and offers an exceptional rate of 3.91% APY on all balances.
This savings account features no monthly maintenance or service fees, no minimum deposit requirement, and a complimentary ATM card for convenient access to your money. FDIC insurance is covered through their parent bank, Axos Bank.
UFB Direct’s superb interest rates are due to its digital banking model that allows them to keep their overhead costs down and pass the savings along to customers.
3. Bask Bank – 3.85% APY
Earn a phenomenal 3.85% APY with the Bask Interest Savings Account – one of the best savings rate currently available.
What’s really interesting about this bank is that you can also open a Bask Mileage Savings Account and earn 1.5 American Airlines AAdvantage® miles for every $1 saved.
As your priorities shifts, you can seamlessly transfer your money between the Bask Interest Savings Account and the Bask Mileage Account at any time.
With no minimum balance and no monthly maintenance fees, the Bask Interest Savings Account is a great place to put your savings. You can access your account at anytime through Bask Bank’s website or using their app available on Apple and Android.
4. Blue Federal Credit Union – 4.00% APY
Expedite your savings with an APY significantly higher than the national average at Blue Federal Credit Union.
Blue Federal Credit Union was originally chartered in 1951 and has since become a financial institution that today is all about empowering people to tap into the potential of their money, life and community.
Open this Money Market Deposit Account with as little as $1 and enjoy the flexibility to withdraw as much as you want, whenever you want – there are no restrictions.
5. CIT Bank – 3.60% APY
CIT is a division of First Citizens Bank that currently offers a 3.60% APY on the CIT Bank Savings Connect account. Benefits of this FDIC-insured savings account include:
- Earn over 15x the national savings account average with a 3.60% APY
- Access to your account with online banking and the CIT Bank mobile app
- Deposit checks and make transfers remotely with the mobile app
The minimum deposit is $100 and you can transfer funds with an electronic transfer, mail-in check, or wire transfer. There are no monthly service fees to worry about.
6. Liberty Savings Bank – 3.85% APY
Liberty Savings Bank is a family-owned FDIC member community bank. Based in Ohio and Florida, it currently has a great rate for a traditional savings account. Earn a 3.85% APY with their High-Yield Savings Account.
It takes less than five minutes to register and fund your account. The rate is offered exclusively through SaveBetter by Liberty Savings Bank and is not available directly.
7. mph.bank – 3.85% APY
mph.bank stands for “makes people happy” and is a brand of Liberty Savings Bank. This bank has a money market deposit account (MMDA) that’s offering a high rate of 3.50% APY.
Interest will be compounded daily and credited on the last calendar day of each month. If funds are withdrawn before interest is credited, accrued interest through the date of the withdrawal will be credited on the first business day of the following month.
A MMDA from mph.bank can offer highly competitive interest rates in part because there’s no spending going toward expensive marketing or pricey naming rights for sports stadiums.
Deposits in mph.bank are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.
8. SkyOne Credit Union – 3.75% APY
SkyOne is a credit union that anyone can join, and currently customers can enjoy a high rate of 3.75% APY with the SkyOne Money Market Deposit Account.
- Interest compounded daily, credited monthly
- Minimum opening deposit of $1
- FDIC-insured by NCUA
You can withdraw or add funds whenever you like – there are no penalties or restrictions. This is an exclusive rate offered via SkyOne’s partnership with SaveBetter.com.
9. Enzo – 3.57% APY
Enzo is an online financial technology company that just increased the interest rate offered on their Enzo Deposit Account to 3.57% APY.
A neat feature of the Enzo account is the cashback rewards program. Your account earns the following cash back rates when you use the Enzo debit card to make a purchase:
- Uber = 10%
- DoorDash = 5%
- Everything Else: 1%
Total cash back is capped at $2,500 a year.
Similar to other banks listed here, such as UFB Direct and Bask Bank, there are no account maintenance or monthly account fee. Enzo also doesn’t have an account minimum balance or charge any domestic ATM fees (international ATM occurs a 1% transaction fee).
10. Bread Savings – 3.50% APY
Bread Savings (formerly Comenity Direct) provides a high yield savings account of Comenity Capital Bank, an FDIC insured bank that gives you a straightforward high yield savings rate of 3.50% APY, more than 16x the national average.
Like others on this list, Bread Savings is an online-only account with no brick-and-mortar locations. This is the main reason that these banks and fintech companies can offer such a high rate compared to banks with branches.
They can offer very competitive interest rates because their operational costs are much lower; no buildings to lease, no branch staff to pay, and no utility bills to cover.
Bread Savings requires just a $100 deposit to open an account.
11. Ponce Bank – 3.25% APY
Ponce Bank is offering one of the best savings rate right now for a Money Market Deposit Account, providing an incredible 3.25% APY with their MMDA product. This is 20.8x higher than the national average.
This FDIC-insured account compounds interest daily and gets credited monthly. With a minimum opening deposit of $1 and no monthly fees or withdrawal fees, it’s easy to move money in and out.
This is an exclusive rate offered via Ponce Bank’s partnership with SaveBetter.com. You need to create an account using the offer button below.
12. Quontic Bank – 3.20% APY
Quontic is a national, digital bank that offers savings, checking, and CD accounts with some of the best APYs in banking. All their accounts feature:
- No Overdraft Fees
- No Wire Transfer Fees
- No Monthly Service Fees
- 90,000+ Fee-Free ATMs
- U.S.-based Customer Service Team
Right now you can get a 3.20% annual percentage yield when you open a Quontic Online Savings account. This high yield savings account compounds interest daily and gets credited to your account monthly.
The minimum deposit is $100 and you can make your initial deposit from an external account via ACH or using Plaid’s technology.
13. BrioDirect High Yield Savings – 3.20% APY
BrioDirect offers a very competitive high-yield savings account. They consistently offer one of the best rates available and besides opening the free savings account, there are no other requirements to enjoy that advertised interest rate.
This is the online brand of Webster Bank and is FDIC insured up to $250,000 per depositor through the parent company.
With no monthly fees and a low opening deposit minimum of $25, the BrioDirect High-Yield Savings Account is best for consumers looking for an online bank that offers an extremely competitive yield.
4 Other High Interest Savings Account Options
While the savings accounts listed here can give you interest rates as high as 4.00% APY, they do come with specific requirements or limitations.
For example, the interest rate may be capped at a certain amount or you may need to have a direct deposit on a regular basis to enjoy the rate.
1. Current.com Checking – 4.00% APY + $50 Bonus
Current.com offers a 4.00% APY on account balances of up to $6,000. Plus, get a $50 bonus when you open a checking account with referral code GLWWNT964 and make a direct deposit of $200 or more.
Current, launched in 2017, is a mobile-only financial technology company that offers banking services. Your deposits are FDIC insured up to $250,000 through Choice Financial Group (FDIC #9423).
This is a really superb interest rate for a bank account and is worth doing. See the Current.com Promotions post for more details or open an account with the button link below.
2. SoFi Checking and Savings – up to 3.25% APY + $275 Bonus
SoFi is offering up to a $275 welcome bonus when you open a new SoFi Checking and Savings account and set up a direct deposit. This is also valid for existing customers that haven’t previously made a direct deposit into their account.
You’ll get a $25 bonus once you open an account and deposit $10. Plus, receive another checking bonus up to $200 based on your total direct deposit amount. The more you deposit, the bigger your sign-up bonus:
|$1,000 – $4,999||$50|
Additionally, earn a 3.25% APY on money in your savings account, which is 62x the national average checking rate. All customers earn a 1.20% APY, while customers that have a direct deposit (even if it’s just $0.01) will earn a 3.25% APY instead.
See this SoFi Promotions post for more details or open an account now with the link below to get the bonus offer.
3. T-Mobile MONEY – up to 4.00% APY
T-Mobile MONEY is an online bank account that everyone earns 2.25% APY on, but T-Mobile wireless customers can earn a crazy high 4.00% APY, just for being a customer.
Besides being a wireless customer, you need to make 10 qualifying purchases per month using the T-Mobile MONEY debit card in order to earn the higher rate.
The 4.00% APY is good for balances up to $3,000. Any amount over $3,000 will earn the standard 2.25% APY.
4. Marcus – up to 4.10% APY
Marcus by Goldman Sachs has a high-yield savings account product that currently earns a base rate of 3.00% APY, but can be boosted all the way up to 4.10% APY.
You earn a 1.00% APY bonus for three months when you open a Marcus Online Savings Account with an invitation link from an existing Marcus customer (here’s mine).
Plus, earn a permanent 0.10% APY bonus if you’re an AARP member, which you can
join for free get paid to join with this Swagbucks promotion.
In total, you’ll earn a 4.10% APY. Keep this rate beyond the initial three months by inviting a friend or family to open a Marcus savings account using your referral link.
Frequently Asked Questions (FAQs)
The short answer is the stock market. It’s the best place to accumulate wealth over the long-term, especially those who are younger with many years to invest.
But the right answer for you depends on your age, risk appetite, and money goals.
For people who want to grow their money risk free, I Bonds and high-yield savings accounts are the best options right now.
Currently, American First Credit Union offers the highest rate for a savings account with no balance limits at 4.00% APY.
The best accounts are UFB High Rate Savings, Bask Bank, Blue Federal Credit Union, and American First Credit Union. All offer a high interest rate with no monthly account fees.
You should open at least two savings accounts.
One should be a “hub” for your money that has high transfer limits and fast transfer times. I recommend SoFi, Ally Bank, or Fidelity. These financial institutions allow a daily transfer amount of at least $100,000. Compare that to most banks that have a limit of $5,000 or $10,000 per day.
The second one should be a bank account that earns you the best interest rate for your money. That could be any of the high-yield savings accounts listed here that best fits your needs.
Check to see if there are any account fees as that could eat up the interest earned. Make sure the bank is FDIC insured (all the banks and fintech companies in this post are).
As you narrow on which bank account to open, check to see if there’s a bank bonus. Some banks offer a bonus for opening an account as an incentive to try them out.
The Bottom Line
Interest rates on savings accounts fluctuate over time so we’ll constantly update this list of the best high yield savings accounts.
While I always advise people to move their money to a bank account with the highest interest rates, the process of “rate chasing” can be time-consuming. Personally, I opened five bank accounts with the best rates and then transfer back and forth between them as the rates adjust.
There’s an advantage to stick with a few banks that has a consistent track record of giving good interest rates since some of the top rates might be bait-and-switch. They reel you in with a high rate and then lower it hoping you don’t make the effort to switch (or even notice).
Banks like Ally, American Express, CIT Bank, Ponce Bank, and UFB Direct have been known to offer competitive interest rates for many years. Their rates will also fluctuate, but will likely always be a good rate.