Best High-yield Savings Account in August 2023

Gaining financial means to cover the costs of a down payment on a home, a new car, or a solid backup plan for when you retire or are unable to work can be immensely valuable to many.

But how to get there in a shorter time? Granted, there are no real, reliable shortcuts, but putting your money in a high-yield savings account can be a great step in the right direction.

What makes this type of savings account so beneficial? Just like the name itself suggests, a high-interest savings account offers investors the option to save money with much higher interest rates than it is in the case of traditional savings accounts.

With time, your deposit grows substantially, offering you a considerable return on investment, with the Annual Percentage Yield (APY) reaching 5.00%.

Below you’ll find the list of the best high-yield savings accounts in 2023, analyzed with regard to APYs, minimal deposits, potential bonuses, and advantages that are awaiting you with various banks.

Best High-yield Savings Accounts for 2023

• LendingClub High-Yield Savings

• Varo Savings Account

• SoFi Checking and Savings

• CIT Bank Platinum Savings

• Bask Interest Savings Account

• UFB Premier Savings

• Ally Online Savings Account

• Citizens Access Savings

• Sallie Mae Bank SmartyPig Account

• Marcus By Goldman Sachs High-Yield Online Savings Account

Brief Introduction to High-yield Savings Accounts

Although the topic of investments and finances can be intimidating, to say the least, it’s not really all that complicated when you have the knowledge of the basic terms. And with that, explaining high-yield savings accounts can be short and sweet.

High-interest accounts, as they are also referred to, are saving accounts that offer better-than-average interest rates on deposits. For example, while according to the Federal Deposit Insurance Corporation (FDIC), the national APY (Annual Percentage Yield) average for 2023 for traditional savings accounts oscillates around 0.42%, high-yield savings accounts come with significantly higher rates, reaching 5.00% and more.

The biggest advantage of high-interest accounts is that they allow you to grow your savings at a much quicker rate, making it a solid option for when you want to build your safety net in a shorter span of time.

LendingClub High-Yield Savings

• Annual Percentage Yield (APY): 4.25%

• Minimum balance requirement: $100 minimum opening deposit

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Available

LendingClub High-Yield Savings account is one of the best accounts of this type available on the market today. It offers an advantageous balance between high APY and low maintenance costs. There is a minimum deposit of $100 required to open the account, but after that, there are no obligations to deposit a set amount.

Additionally, LendingClub offers its clients free ATM cards (there are no ATM transactions related fees), and many customer-friendly options to deposit money (one can do it via ATM, their mobile app, transfer from a different bank or credit union, or a wire transfer).

One thing worth noting is the fact that this bank does not have physical locations. Still, they make the process of opening and running the account really easy, and with such favorable terms, this high-yield savings account presents great value for anyone who’s interested in an affordable, complication-free savings account.

Varo Savings Account

• Annual Percentage Yield (APY): first 3.00%, and 5.00% after meeting some requirements

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Available

Varo is another bank that caters to clients who don’t mind running their accounts fully online. With Varo, there are no expensive fees, you also don’t need to cash in a minimum deposit to open the account. It’s a flexible option, as you can start saving with even small amounts.

What’s unique about Varo’s high-yield savings account is its APY structure that rewards those who want to save up more. Most clients start with 3.00% APY, but by meeting certain requirements, they can advance to 5.00% APY.

These criteria include placing a minimum of $1000 in total in deposits each month, making a minimum of five transactions using Varo Visa® Debit Card, and keeping the account’s balance to no higher than $5,000, all within the same month.

The bank also offers special saving programs that can automatically transfer funds to your savings account if you choose to. Overall, it’s a very solid choice for those who would like some extra assistance with establishing their saving habits and benefiting the most from them.

SoFi Checking and Savings

• Annual Percentage Yield (APY): 4.30% with direct deposits and 1.20% without them

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Available

SoFi’s high-interest savings account comes with no monthly fees, no minimum balance or deposit, access to ATMs for free, as well as a checking account. And, what many clients value about LoFi is their bonuses that can help you save up to 15% on purchases with various merchants and welcome you with a bonus of $250 (there are some limits to this incentive, though).

Their baseline APY is not as high as with some other banks on our lists, as it amounts to 1.20% APY, but by placing direct deposits, you can increase it to 4.30%, which is a strong number when it comes to high-yield savings rates.

SoFi makes it easier for their clients to sustain saving habits, offering the option to set saving goals and automatically save the change. If you’re not a huge fan of running your accounts solely online, this bank has around 55,000 physical locations for your disposal. They do, however, lack the option to open a standalone checking account or savings account, which may not be suitable for some clients.

CIT Bank Platinum Savings

• Annual Percentage Yield (APY): 4.95% for balances over $5,000, 0.25% for less

• Minimum balance requirement: $100

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Available

CIT Bank Platinum Savings account presents many benefits for those interested in a solid and reliable savings bank account. They offer a really strong APY of 4.95%, although it’s worth noting that this is reserved for clients with balances of $5,000 or more. If you’re set on saving larger sums, you can gain a lot with such a high-interest rate.

The bank does not charge a monthly fee for running the account, but they don’t offer free access to an ATM network. They also have a higher minimum opening deposit than some other banks presented in this article, which is something worth accounting for.

Still, CIT Bank makes it easy to run an account, both online and in person. While many of their products are relatively basic, their high-yield savings account allows clients to save and gain a considerable amount of money with low operational costs, making them one of the best high-yield savings accounts in 2023.

Bask Interest Savings Account

• Annual Percentage Yield (APY): 4.85%

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Not Available

Another example of a high-yield savings account with a really high APY is Bask Interest Savings Account. The 4.85% APY is extended to all savings account holders with no additional requirements. They do not have minimum balance requirements as well, making their product one of the best when it comes to striking a balance between high-rate interests and minimal additional terms.

One of the most interesting bonuses you can gain when opening an account with the Bask Bank is the option to choose to earn American Airlines AAdvantage® miles instead of the interest rate. If you’re a frequent traveler, this solution might be a traffic choice. You have the chance to earn 2.5 miles for every $1 saved annually.

As far as high-interest savings accounts go, Bask Bank offers their clients a sweet deal. They do not offer a checking account, though, and the bank can close your savings account if it stays unfunded for 15 business days, which we would consider the biggest drawback to this product.

UFB Premier Savings

• Annual Percentage Yield (APY): 4.81%

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Not Available

There are many things to like about the UFB Premier Savings account, starting from the most prominent, which of course, is their high APY rate. With up to 4.81% APY, clients of this bank have the opportunity to build considerable savings. Additionally, UFB doesn’t require minimum deposits or charge monthly maintenance fees.

As for the potential disadvantages, there is no option to add a checking account. The bank doesn’t have physical branches, so all the banking has to be done online. But account holders don’t have to pay for ATM services and can benefit from the quality online savings account services, so despite these cons, many people will be more than content with what UFB has prepared for their clients.

Ally Online Savings Account

• Annual Percentage Yield (APY): 4.00%

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: $10 per transaction

• Checking account: Available

If you’re looking for more comprehensive banking services with your savings account, you might find Ally Bank an interesting choice. With a respectable APY of 4.00%, no monthly service fees and minimum deposit requirements, and free access to more than 40,000 free Allpoint® ATMs, running your account and withdrawing your money anytime you need to are easy and headache free.

While Ally charges some hefty transactional fees, which is less than ideal, it’s important to mention that you won’t have to pay a transactional fee when you’re using an ATM outside of the Allpoint® network. The bank will reimburse you for those services for up to $10 per month.

Additionally, clients can withdraw money or transfer funds online up to six times a month with no additional fees. As in the case of most online banks, clients can deposit their money via a mobile app, which can be more convenient than traditional banking.

And with various saving tools, like “buckets,” that can help you organize your finances in a way that makes the most sense for you, Ally Online Savings Account can be considered one of the best high-yield savings accounts on the market right now.

Citizens Access Savings

• Annual Percentage Yield (APY): 4.50%

• Minimum balance requirement: $0.01

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Not Available

Another online bank with substantial APY is Citizens Access, which is an online division of Citizen Bank. As such, it doesn’t offer a checking account, but with APY as high as 4.50%, it is still a valid choice for those who want to build their savings.

The minimum deposit amounts to $0.01, and there are no additional service fees. Clients can access their accounts through the Citizens Access mobile app. You can place a direct deposit and recurring transfers, and the bank gives you the option to link your Citizens Access Savings account with your accounts in other financial institutions for even easier access to your money (albeit, some restrictions apply, so it’s important to familiarize yourself with them).

All and all, a Citizens Access account is easy to manage and can help you gain a considerable interest from the high-interest rates. Even if you want to start small, this bank gives you rather favorable terms.

Sallie Mae Bank SmartyPig Account

• Annual Percentage Yield (APY): 3.85%

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Not Available

Sallie Mae Bank offers a high-yield savings account with some interesting tools for setting and tracking your savings goals. This account allows you to set specific savings goals and dealines, so you can stay on track and benefit the most out of your account.

Bank gives their clients an option to set up automatic monthly or biweekly deposits from their other bank accounts and make withdrawals and deposits any time they want. This flexibility, combined with minimal maintenance costs, is why an online savings account in Sallie Mae Bank is a viable option for clients who have limited needs when it comes to banking services but want to save as much as possible, both in the short and long term perspective.

Marcus By Goldman Sachs High-Yield Online Savings Account

• Annual Percentage Yield (APY): 4.15%

• Minimum balance requirement: None

• Monthly fees: None

• Excessive transactions fee: None

• Checking account: Not Available

Who would be content with the Marcus By Goldman Sachs High-Yield Online Savings Account? This product is a great option if you’re looking for an account with solid APY, no additional costs, and easy-to-use online banking services.

This account was created for those who want to save their money and avoid any unnecessary complications along the way. As with most online savings accounts that are featured in this article, Goldman Sachs Bank offers a mobile banking app that allows you to set up recurring deposits, and access all the important information about your savings, for example, how far along you are with your savings goals.

Withdrawals are possible through various means, including an online account, the app, via phone through ACH, or free wire transfers, among others. In addition to that, the bank doesn’t charge their clients fees for transferring money from or to your other accounts.

Some drawbacks regarding this product include the fact that there are no ATM cards available with this account, so getting access to the money on the account is somewhat restricted. Still, Marcus By Goldman Sachs account can be a valuable option for setting up a high-yield savings account.

Why Choose a High-yield Savings Account?

There are a few good reasons why high-yield savings accounts offer great value to those who want to save money and earn interest at the same time. What are the biggest benefits of this product?

• Your money gains value with time. Of course, it’s possible to make savings on your checking accounts or set aside a certain amount of cash in your sock drawer (a method that we wouldn’t recommend), but it’s not the most productive strategy when it comes to saving money in a world where inflation exists. With the high-interest rates these savings accounts offer, you get to not only accumulate savings but also gain more value in the process.

• High APY with no risks attached. Admittedly, there are potentially more profitable methods of saving money and getting a respectable return on investment (like investing in the stock market or real estate), but these come with significant risks. You can gain a lot, but the potential for loss is also substantial. This is not the case with high-yield savings accounts that offer guaranteed interest rates. Most of these products are FDIC-insured and don’t introduce many additional costs, like maintenance fees or transactional fees.

• Anyone can start saving on a high-yield savings account. You don’t have to have stacks of cash lying around to start saving money with great interest rates. Most accounts we showcased don’t require a minimum deposit to open the account. No matter if you have $100, $50, or $5 worth of savings — this product is for you.

• Saving can become easier with the account. Having money you can set aside is one thing. Actually setting it aside is a whole different step. A high-interest saving account can be a great help in creating some crucial saving habits. You can set your accounts to make automatic transfers, or to transfer your change, etc, de facto saving money without you doing anything or even noticing. You also get a nice overview of your savings and savings goals, which can help you stay motivated and informed about your financial standing.

• You can still access the money freely. Some investment and saving opportunities make it very difficult or even impossible to access your money before a certain time. In the majority of cases, you have easy access to your high-yield savings account and can withdraw money in cases of emergency or if you change your mind at any point without facing any financial consequences. This, of course, may differ from bank to bank, so it’s always crucial to check the terms of your high-interest saving account to know whether or not you’ll face any penalties when making early withdrawals.