6 Best High-Yield Savings Accounts of December 2023

*Rates and APYs are subject to change. All information provided here is accurate as of November 30, 2023.

Money has been a leader in personal finance news for over four decades. Our expertise in banking is extensive, and includes the analysis of nearly 300 financial institutions for our recent list of the Best Banks in America. We’ve also dedicated thousands of hours to evaluating high-yield savings accounts from more than 50 banks, credit unions, online banks and other FDIC or NCUA-insured financial institutions.

Based on our research, we spotlighted the six best high-yield savings accounts, plus five more accounts that almost made the cut.

Money’s Main Takeaways

• The best high-yield savings account rates for December are at Popular Direct (5.40% APY), BrioDirect (5.35% APY) and My Banking Direct (5.35% APY).

• Varo is our choice for combining a high-yield savings and checking account at one bank.

• There are no monthly fees for any of the high-yield savings accounts in our top picks.

• Currently, the best high-yield savings accounts offer 5.00% APY or more.

Our Top Picks for the 6 Best High-Yield Savings Accounts of November 2023

• Valley Direct - Best Online Bank for High-Yield Savings Accounts (5.25% APY)
• UFB Direct - Best High-Yield Savings with ATM Card (5.25% APY)
• Popular Direct - Best High-Yield Savings Account with a Minimum Deposit (5.40% APY)
• My Banking Direct - Best Regional Bank for High-Yield Savings Accounts (5.35% APY)
• Varo - Best High-Yield Savings Account and Checking Combination (up to 5.00% APY)
• BrioDirect - Best High-Yield Account for Serious Savers (5.35% APY)

Best High-Yield Savings Accounts Reviews

Each company’s annual percentage yield (APY) is accurate at the time of this publication, but they may vary according to the rates set by the Federal Reserve.

Why we chose it: Valley Direct takes the top spot for the best online bank for high-yield savings accounts because of its above-average annual percentage yield and unlimited number of outgoing transfers, which include Zelle payments.

Valley Direct’s high-yield online savings account stands out not only for offering one of the leading annual percentage yields available today, but also for its integration of Zelle — a feature typically only seen with checking accounts. Using Zelle, customers can send and receive payments within minutes and there are no limits on the number of transactions.

Customers can also request a check by mail by contacting Valley Direct customer support. However, there is a maximum withdrawal limit of up to $3,500 per day or $12,500 per month total. Still, Valley Direct’s withdrawal protocol is far more generous compared to HYSAs from other financial institutions.

There is no fee for transactions declined due to insufficient funds, but if the transaction processes and is returned, you’ll be charged $5. Additionally, overdraft fees are high at $30 per item. Valley Bank also adds 5.5% interest annually on unpaid overdrafts.

There are multiple ways to add funds to your account: mobile deposit on the Valley Direct app, direct deposit, electronic transfer from an external account and Zelle payments. While Valley Direct is an online bank, your account can be serviced in person by its parent company, Valley Bank. Branches are located throughout Alabama, Florida, New Jersey and New York.

Why we chose it: UFB Direct is our choice for Best High-Yield Savings with ATM Card because it includes a debit card with its high-yield savings account and doesn’t limit the number of withdrawals you can make.

UFB Direct, a division of the digital financial institution Axos Bank, currently offers one of the highest APYs in the high-yield savings account market. Additionally, the UFB High Yield Savings account comes with a debit card, which isn’t standard for accounts of this kind. Plus, there’s no cap on how many withdrawals you can make.

However, it’s worth noting that UFB charges a $25 fee for each charge that exceeds your account balance. (The maximum fee you can pay in a single day is $75.) The only overdraft protection UFB offers is coverage of negative balances through linked UFB checking accounts.

Still, with no monthly fees and no minimum deposit or balance requirements, UFB’s high-yield savings account is a solid choice — especially considering its competitive annual percentage rates.

Why we chose it: Popular Direct is our choice for the best high-yield savings account with a minimum deposit because of the high APY rates of both of its savings account options.

Popular Direct, an online bank owned by Popular Bank, provides a high-earning savings option with its Select Savings account. An initial deposit of $100 is required to open the account, but there are no ongoing minimum balance requirements. There are no balance caps on APY, either. All balances of at least $0.01 qualify to earn the highest available annual percentage yield.

You can fund your account via mobile deposit or by transferring funds online from an external bank account. Note that you must use the external bank account designated at account sign up for at least 70 days. You cannot change the account until after this time has passed, and any subsequent swaps must be initiated 70 days apart. Additionally, you can only link one external bank account at a time.

Popular Direct does not charge any monthly fees for its high-yield savings account. However, if you overdraft your account for more than $50, you’ll be charged $10 per transaction (with a max of three fees per business day). Additionally, there’s a $25 fee if you close your account within 180 days of opening it.

Why we chose it: My Banking Direct is our pick for the best regional bank for high-yield savings accounts because, after an initial $500 deposit, all of its accounts qualify for the highest APY, so long as you maintain a balance of $1 or more.

My Banking Direct high-yield savings account offers a competitive annual percentage yield and no monthly fees. You need to make an initial deposit of $500 to open an account, but after that, the required minimum balance is only $1. All of My Banking Direct's high-yield savings accounts are eligible for the highest annual percentage yield available, regardless of the user's balance.

Mobile deposits can be made using the app, and you can easily transfer funds from other accounts or set up recurring deposits. Still, you can't withdraw funds from your high-yield savings account through an ATM, since My Banking Direct doesn’t offer a debit card for this product. Checks aren’t available either, but you can transfer funds to other accounts or contact the bank to process a withdrawal.

Read our full review of My Banking Direct high-yield savings accounts here.

Why we chose it: Varo is our choice for the best high-yield savings and checking combination because its high-yield account offers a strong APY, and its checking account includes perks, such as early direct deposit and cash advances.

Varo, a digital-only bank, offers several extras for customers who bundle a high-yield savings account with a checking account. There is no monthly fee, minimum balance requirement or minimum deposit for either of these accounts.

When you receive at least $1,000 each month in direct deposits to your savings account, you get the highest APY available on balances up to $5,000. Checking account holders have access to a fee-free cash advance of $20 and, with consistent on-time payments, access to advances of up to $500 with minimal fees.

Varo also offers two automated savings tools:

• Save Your Change - Varo automatically rounds up your checking transactions to the nearest dollar and transfers the difference to your HYSA.

• Save Your Pay - You can designate a percentage of your pay for automatic transfer to your high-yield savings account.

Read our full review of Varo high-yield savings accounts here.

Why we chose it: BrioDirect is our top choice for the best high-yield savings account for serious savers due to its high returns after an initial $5,000 deposit.

If you’re ready to invest at least $5,000, BrioDirect — an online banking brand by the longstanding, Connecticut-based Webster Bank — is an ideal account for making the most of your savings. Its high-yield savings account boasts a strong annual percentage yield and no monthly maintenance fees. Plus, the ongoing minimum balance required after the initial $5,000 deposit is only $25.

You can fund your account via transfer from an external bank; BrioDirect allows customers to link up to five accounts at one time. Unfortunately, there is no mobile check deposit feature currently, and there are no physical branches for in-person deposits — but BrioDirect does accept checks for deposit by mail, as well as wire transfers.

One major bonus, as compared to other high-yield savings accounts with withdrawal limits: BioDirect does not impose any cap on the number of outgoing transfers you can make per cycle. Note, though, that outgoing transfers to external accounts are capped at $25,000 per three days (or as soon as the transfer is processed), or $100,000 in a given cycle. To transfer more, you’ll have to speak to a customer service representative.

Other high-yield savings accounts we considered

Mph.bank

Mph.bank’s savings account — the Future account — pays competitive interest on your balance. No matter how high or low, any balance qualifies for the highest APY. There are no overdraft fees, no monthly fees and no minimum balance required to open a new account.

Why mph.bank didn’t make the cut: Mph.bank was formerly our favorite online bank for high-yield savings accounts, but another bank (Valley Direct) has bumped it out of the top spot by offering a higher annual percentage yield.

Read our full review of mph.bank high-yield savings accounts here.

Bask Bank

Bask Bank is the digital bank of the Texas Capital Bank, a brick-and-mortar bank founded in 1998. Its Interest Savings Account debuted this year. Previously, Bask only offered a savings product that accrued American Airlines mileage, not cash.

Why Bask Bank didn’t make the cut: While Bask Bank offers a high APY savings account with no fees, it doesn’t include the extras (e.g. savings tools) that other banks with the same rate offer.

Read our full review of Bask Bank high-yield savings accounts here.

Discover

Discover is best known for its credit cards, but the company also offers banking products. This includes an online savings account with no monthly fee and no initial deposit requirement. You aren’t required to maintain a minimum balance, either.

Why Discover didn’t make the cut: The APY for Discover’s online savings account is currently lower than what’s offered by the best high-yield savings accounts available today.

Read our full review of Discover high-yield savings accounts here.

Milli

Milli offers a no-fee HYSA with a competitive annual percentage yield. The online-only bank also has savings tools, such as the goal-setting jars to set aside funds and an automatic round-up feature for use with a Milli checking account. However, reviews on third-party sites reveal deposit delays and unexpected account freezes.

Why Milli didn’t make the cut: Despite the account’s high APY, overwhelmingly negative customer reviews across several review sites kept Milli out of our top picks.

Synchrony High Yield Savings

Synchrony Bank, an online-only bank, offers a high-yield savings option. No minimum deposit to open the account and no monthly fees are charged. The bank also offers an online savings calculator to help you set financial goals.

Why Synchrony Bank didn’t make the cut: The APY Synchrony offers is on par with what’s currently available elsewhere, but other financial institutions offer higher APYs.

Read our full review of Synchrony Bank high-yield savings accounts here.

High-Yield Savings Accounts Guide

High-yield savings accounts are relatively easy to understand but share many characteristics with other bank products. Read on to learn about high-yield savings accounts, from how they work to which features to look for when choosing an account.

What is a high-yield savings account?

High-yield savings accounts, also known as high-interest rate savings accounts, are bank accounts that earn a higher APY than a traditional savings account. For many, saving money is critical to their personal finance goals — and high-yield savings accounts offer the best rates when compared to many other types of savings accounts.

Additionally, high-yield savings accounts allow unlimited access to funds through various withdrawal methods. This is unlike other high-interest-bearing savings products, such as certificates of deposits (CDs), which are offered in set term lengths. Customers who withdraw funds early from CDs are typically penalized.

How does a high-yield savings account work?

A high-yield savings account works by offering a higher interest rate than traditional savings accounts, helping savers grow their money in a shorter span of time. High-yield savings accounts also limit the ways in which you can access your money, so you’re less likely to stray from your savings goals.

However, these limitations are not the same for every high-yield savings account. Some online banks and traditional banks allow you to order checks or request a debit card to allow easier access to your funds.

How to open a high-yield savings account

• Apply online, over the phone, or if the bank has brick-and-mortar branches, go there in person

• Enter personal information, such as full name, address, driver’s license or government-issued ID, phone number, Social Security number and where your deposits will come from (e.g., transfers from other accounts, direct deposits, mobile deposits) as requested

• Agree to terms and conditions after reviewing; check for fees and specifics on rates

• Receive instant approval or, in some cases, wait for confirmation from the bank via email or regular mail

• Consider setting up direct deposit if required to earn the highest APY. You can also transfer funds into your account from another institution through online transfer. With brick-and-mortar banks, you can deposit funds in person.

How to pick a high-yield savings account

Follow these steps to pick a high-yield savings account that fits your needs.

1. Evaluate your savings goals: If you’re looking for fast but small gains on your savings, a high-yield savings account may be right for you. However, if you’re looking to turn a greater profit, you may want to consider other savings or investment options.

2. Compare APYs across HYSAs: Given that the main selling point of a high-yield savings account is its higher interest rate, a high APY should be the main factor to consider when shopping around.

3. Look for accounts with zero fees: Many HYSAs are entirely free to use, while some banks set a monthly fee that can be waived by meeting certain requirements, such as a set amount of direct deposits per cycle. Avoid accounts with monthly fees that can’t be waived, as these costs cut into your interest earnings.

4. Make sure your bank notes “member FDIC” or “member NCUA”: You’ll find this information at the bottom of the financial institution’s website. FDIC or NCUA insurance is a must, because it safeguards your money if your bank or credit union should fail due to bankruptcy or insolvency.

High-yield savings account alternatives

High-yield savings accounts are one way to save money and earn interest, but there are additional options to consider. Read on to see how a HYSA measures up to the alternatives.

High-yield savings vs. money market account

While high-yield and money market accounts are both high-interest savings accounts, even some of the best money market accounts don’t offer APYs as high as HYSAs. Find out other ways in which these accounts differ in the table below.

 

High-yield savings account vs. traditional savings account

A traditional savings account is much like a high-yield savings account. While they’ve traditionally offered lower APYs, today’s best savings accounts have undergone rate changes that now compete with HYSAs, making the two accounts more similar than ever before.

 

High-yield savings account vs. certificate of deposit (CD)

Unlike a high-yield savings account, with a Certificate of Deposit (CD) account, you agree to leave your funds in your account for a fixed period of time, usually from six to 72 months. You’ll likely incur a fee if you withdraw funds early. The best CD rates are on par with APYs offered by high-yield savings accounts.

 

High-yield savings vs. money market fund

A high-yield savings deposit account is quite different from a money market fund, which is a type of mutual fund regulated by the U.S. Securities and Exchange Commission (SEC). You earn interest on your money market funds because the bank or financial institution invests those funds on your behalf across several low-risk debt securities, such as Certificates of Deposit (CDs), U.S. Treasury bills and corporate bonds.

 

High-yield savings vs. checking account

A high-yield savings account (HYSA) is a type of account that bears interest, while a checking account typically does not. Generally, checking accounts are not used for saving, but instead for receiving and spending money.

However, some of the best checking accounts do accrue interest, albeit at significantly lower rates than those offered by high-yield savings accounts. Some also offer cash back on purchases and sign-up bonuses.

 

Why open a high-yield savings account?

High-yield savings accounts are a great alternative to traditional savings accounts due to their higher interest rates. They’re particularly useful if you have short- to medium-term savings goals, such as saving for college, a new car, or a new house.

Of course, high-yield savings accounts can also serve as a replacement for a traditional savings account. Considering their higher interest rates, they’re an excellent tool for putting away any surplus cash you might not want in your checking account.

High-Yield Savings Account Glossary

• Annual Percentage Yield (APY) - APY is the effective rate of return on your investment after factoring in the effects of compound interest. The APY is considered in relation to the federal funds rate set by the Federal Reserve, also called the Fed.

• Interest - Simply put, interest is the amount of money that a bank pays its customers to hold their money. It is usually expressed as a percentage of the amount that each individual customer has deposited.

• Compound interest - You can think of compound interest as “interest on your interest.”

• Savings account - A type of bank account with higher interest rates than a checking account. They’re designed to help you put away extra funds for emergencies or short-term purchase goals.

• High-yield savings account - A type of savings account with a higher interest rate than a traditional savings account. They’re meant to help you build funds for short- or medium-term purchase goals, such as a new car, college or even a new home.

• Money market account - Money market accounts are similar to high-yield savings accounts but aimed at businesses. They are more likely to allow for debit cards and checks, particularly for individual employees who need to access business funds regularly.

• Checking account - A type of bank account designed for everyday spending. They allow for checks and ATM cards. The interest rates offered by these accounts are typically the lowest.

• Neobank - This type of bank is an online-only bank with no physical branches. It’s considered a type of fintech (financial technology) company.

• ACH transfer - An ACH transfer is an electronic transfer of funds from one bank to another. The ACH stands for “automated clearing house,” referring to the network that manages these transfers.

• FDIC/NCUA insurance - Money in a brick-and-mortar bank, online bank, credit union or any type of financial institution is secure as long as the financial institution is insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). Most high-yield savings accounts are FDIC or NCUA-insured up to $250,000.

How We Chose the 6 Best High-Yield Savings Accounts of December 2023

To identify the best high-yield savings accounts, we evaluated more than 50 banks, credit unions, online banks and other financial institutions. Below you’ll find the methodology behind our choices for the best high-yield savings accounts.

• Competitive annual percentage yield rates: Financial institutions must offer competitive rates as compared to the average among the high-yield savings accounts we evaluated. Some banks were disqualified because of low annual percentage yields.

• Account fees: We looked for accounts with no maintenance fees, no minimum balance fees and free online transfers. We also prioritized banks that do not charge overdraft fees.

• Access to funds: We reviewed each account’s methods for withdrawal and deposits, such as electronic transfers, wire transfers, mailed checks or linking to external checking accounts. ATM withdrawal options are a plus; not all banks offer debit cards with high-yield savings accounts.

• Transparency: Financial institutions must make easily accessible the account terms and conditions, such as monthly fees, overdraft charges and interest rates.

• Ease of use and accessibility: Mobile banking apps and online platforms should be user-friendly and intuitive.

• Customer service: We recognize that direct banking customers should be familiar with online and mobile platforms, but customer support must be readily available when needed. The best online savings accounts offer chat, phone, and email support; some even guarantee 24/7 customer support.

• Strong financial standing: Your financial institution of choice should have a solid financial rating from a reputable credit rating agency. S&P Global Ratings, Moody’s, and Fitch Group are known as The Big Three in the industry, and you can search their databases for information on the bank of your choice.

• Member FDIC or NCUA: We require that any top pick includes “member FDIC” on its site to make it publicly known that it’s an insured bank or financial institution in accordance with the standards of the Federal Deposit Insurance Corporation (FDIC). The FDIC covers up to $250,000 per depositor, per ownership category, per FDIC-insured institution. For credit unions only, insurance by the National Credit Union Administration (NCUA) is acceptable. The NCUA also covers up to $250,000 per depositor, per ownership category, per NCUA-insured institution.

Comparison to other banks and financial institutions

To best evaluate the quality of a high-yield savings account, we researched and compared accounts across a multitude of banks and financial institutions, including Alliant Credit Union, Ally Bank, American Express high-yield savings from American Express National Bank, Apple Savings account, Axos, Bank of America, Barclays Online Savings, Blue Federal Credit Union, BluPeak Credit Union, Bread Savings, Capital One 360 Performance Savings, Chase Savings, CIBC U.S., CIT Bank Savings Builder, Citi Bank, Citizens Bank, Emigrant Bank, Everbank (formerly TIAA Bank), First Citizens Bank, First Foundation Bank, First Internet Bank, FNBO, Ivy Bank, Jovia Financial Credit Union, LendingClub, Marcus by Goldman Sachs, My Savings Direct, Nationwide, Newtek Bank, North American Savings Bank, PayPal Savings, Pentagon Federal Credit Union (PenFed), Primis, RBMAX by Republic Bank, Quontic Bank, Regions Bank, Sallie Mae Bank, SoFi, TotalDirect Bank, U.S. Bank, USAA Bank, Vio Bank, Wealthfront, Wells Fargo and Western State Bank.

Summary of Money’s 6 Best High-Yield Savings Accounts of November 2023

• Valley Direct - Best Online Bank for High-Yield Savings Accounts (5.25% APY)
• UFB Direct - Best High-Yield Savings with ATM Card (5.25% APY)
• Popular Direct - Best High-Yield Savings Account with a Minimum Deposit (5.40% APY)
• My Banking Direct - Best Regional Bank for High-Yield Savings Accounts (5.35% APY)
• Varo - Best High-Yield Savings Account and Checking Combination (up to 5.00% APY)
• BrioDirect - Best High-Yield Account for Serious Savers (5.35% APY)