Best savings accounts for October 2023

That said, not all savings accounts are created equal, and interest rates are just one piece of the puzzle. You also want to put your money where you won’t incur any unnecessary fees or have to maintain a huge balance to earn the advertised rate. 

So if you’re looking for the right place to keep your savings but aren’t sure where to start, don’t worry: we’ve got your back. The Fortune Recommends team regularly reviews more than 50 high-yield savings accounts to bring you our top picks based on annual percentage yield (APY), deposit requirements, fees, and more.

You can read our full methodology here.

Best savings account rates

1. Popular Direct: 5.40% APY
2. Cloudbank 24/7: 5.26% APY
3. Western Alliance Bank: 5.26%
4. Evergreen Bank Group: 5.25% APY
5. Milli: 5.25% APY
6. Newtek Bank: 5.25% APY
7. UFB Direct: 5.25% APY
8. Valley Direct: 5.25%
9. FNBO Direct: 5.15% APY
10. Bread Savings: 5.15% APY

*Last updated October 18, 2023

10 savings accounts with the highest yields today

We rounded up accounts currently offering APYs of more than 5% to help you choose the best account for your savings. Here’s a quick look at 10 high-yield savings accounts available today with rates of 5.15% APY and up.

1. Popular Direct 

Popular Direct is an online banking platform offered by Popular Bank, a subsidiary of Popular, Inc., a national full-service bank that has been serving customers for over 120 years. Popular Direct offers a variety of deposit products, including high-yield savings accounts and CDs to customers across the U.S., Puerto Rico, and Caribbean.

The high-yield savings account from Popular Direct has the highest rate among the banks on our list with 5.40% APY. You’ll need at least $100 to open an account. 

2. Cloudbank 24/7

You may have never heard of Cloudbank 24/7 before, but rest assured that they’re a legitimate financial institution offering some of the most competitive online deposit accounts today. Cloudbank 24/7 is a digital bank that’s backed by Third Coast Bank SSB, a community bank that operates in Texas. It specalizes in providing online banking products with competitive interest rates.

The high-yield savings account from Cloudbank 24/7 offers a market-leading 5.26% APY. It’s accessible through Raisin, a free digital savings marketplace that connects individuals to banks and credit unions offering their best digital-only rates and products (all financial institutions on Raisin are federally insured). In other words, you’ll need to open an account with Raisin in order to secure this great rate, and Raisin will handle everything from deposits and withdrawals, statements, and customer service (rather than Cloudbank 24/7).

3. Western Alliance Bank

Western Alliance Bank is a regional bank headquartered in Phoenix, Arizona. It was established in 2009 and primarily offers commercial banking products and services. It operates in key markets across the U.S. and offers services such as commercial loans, treasury management, international banking, and more.

That said, Western Alliance Bank also offers and opportunity for individuals nationwide to take advantage of its high-yield savings account through the Raisin platform. It offers a whopping 5.25% APY and a minimum opening deposit of only $1. In order to open this savings account, you must create a Raisin account (you can’t open one directly with the bank).

4. Evergreen Bank Group

Founded in 2006, Evergreen Bank Group is a locally owned and managed, full-service commercial bank with over $1 billion in assets. It operates three branches in the Chicago suburbs of Evergreen Park, Oak Brook, and Hinsdale. Even so, you can take advantage of the bank’s high-yield savings account from anywhere in the country.

The online savings account from Evergreen Bank Group requires just $100 to open and earn a competitive 5.25% APY, with no monthly fees. Accounts can be managed from anywhere and any time thanks to a robust online and mobile banking platform.

5. Milli

Milli is a mobile-only bank, meaning managing your Milli accounts is done from a mobile device, as there are no physical branch locations. But don’t worry, Milli isn’t some fly-by-night app; it’s a division of the First National Bank of Omaha (FNBO), a subsidiary of First National of Nebraska and among the largest privately-owned banks in the country.

Milli’s high-yielding savings account not only comes with zero fees or minimum deposit requirements, but also pays an impressive 5.25% APY. To help you better manage your savings, Milli also offers a “jars” feature, which lets you separate out your savings by goal.

6. Newtek Bank

Newtek Bank might sound like a futuristic business, but this financial institution was originally established more than six decades ago. It’s a subsidiary of NewtekOne, a leading provider of financial and business solutions. However, Newtek Bank specializes in providing savings and CD accounts to individuals. It operates exclusively online, which means customers manage their accounts from their computers and mobile devices.

The personal high-yield savings account from Newtek Bank offers an impressive 5.25% APY. There is no minimum deposit required to open an account or earn the advertised rate, and there are no monthly fees. Accounts can be opened in as little as two minutes.

7. UFB Direct

UFB Direct is the online banking division of San Diego-based Axos Bank. It’s known for offering competitive interest rates and fee structures due to lower overhead costs compared to traditional brick-and-mortar banks. UFB Direct a handful of banking products, including high-yield deposit accounts and mortgages.

You can earn an impressive 5.25% APY with the Priority Savings account from UFB Direct. The account boast no fees or minimum deposit requirements, and comes with a complimentary ATM card. 

8. Valley Direct

Valley Direct was launched in 2020 as the online division of Valley Bank, a regional bank headquartered in Wayne, New Jersey that was established in 1927. Valley Direct offers high-yield savings and CD accounts that are available nationwide. Valley Direct accounts are opened and managed online (there are no physical branch locations).

It only takes $1 to open the high-yield savings account from Valley Direct, which offers a competitive 5.25% APY. There are no monthly fees and no minimum balance requirement. However, accounts may be closed if the balance remains at $0 for 60 days or more.

9. FNBO Direct 

FNBO Direct is an online-only division of the First National Bank of Omaha. It provides customers with the convenience of online banking, combined with the reputation and reliability of a well-established financial institution. FNBO Direct offers two deposit account options: a checking account and a savings account, both of which are available nationwide.

The high-yield savings account from FNBO Direct offers a competitive 5.15% APY and can be opened with as little as $1. There are no monthly fees or minimum balance requirements.

10. Bread Savings

Bread Savings is another relative newcomers to the online banking scene. Even so, it stands out among the competition for its simple but lucrative bank account offerings. Bread Savings is product of Comenity Capital Bank, which is part of Bread Financial, a digital financial services company. 

The high-yield savings account from Bread Savings currently offers an impressive 5.15% APY with no monthly fees and just $100 required to open. Deposits are insured by the FDIC up to federal limits.

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Our picks for high-yield savings accounts in October 2023

When evaluating the best high-interest savings accounts available today, we considered which ones offer high interest rates, low (or no) fees, ATM access, online and mobile banking, and more. Further, each account is backed by the Federal Deposit Insurance Corporation (FDIC) and insured up to $250,000 per depositor, per account, giving you peace of mind that your savings are protected no matter what

Note: APYs in our list below are up to date as of October 18, 2023, but are subject to change.

Western Alliance Bank: Best overall

Western Alliance Bank is one of the top commercial banks in the U.S. This savings account, however, is available to individuals exclusively through Raisin, a free digital platform that connects savers with high-yield online accounts available nationwide. 

The high-yield savings account from Western Alliance Bank won best overall savings account thanks, in part, to it’s impressive rate of 5.26% APY. There are also no minimum deposit or minimum balance requirements to get this rate and no monthly maintenance fees associated with the account. 

To open this high-yield savings account, you’ll need to first sign up for Raisin, which handles all aspects of account management (you can’t open the account directly through Western Alliance Bank).

Ally Bank: Best for maximizing savings

Ally Bank is the direct banking subsidiary of Ally Financial Inc., a leading digital financial services company. It offers a wide variety of banking products, including checking and savings accounts, loans, and more.

Ally Bank’s high-yield savings account ranked best for maximizing savings because it offers plenty of value beyond the impressive 4.25% APY. There are no account minimums or fees. Plus, if you open a new account by October 26, 2023 and fund it with at least $1,000 from a non-Ally account by November 4, 2023, you’ll be eligible for a welcome bonus. You must keep your funds on deposit through January 15, 2024. And on February 15, 2024, you’ll receive a bonus of 1% on the cash you funded your account with, up to a maximum of $500.

Ally also belongs to a network of more than 43,000 surcharge-free ATMs and offers reimbursements for out-of-network ATM fees.

UFB Direct: Best for convenience

UFB Direct is a division of Axos Bank that specializes in providing high-yield, low-cost banking products, including savings accounts, money market accounts, and mortgages.

The high-yield savings account from UFB Direct ranks as best when it comes to convenience. For one, it includes a complimentary ATM card and a huge ATM network that allows you to access your money across the country. UFB Direct also provides 24/7 phone support, as well as a highly rated mobile app and robust digital tools. 

FNBO Direct: Best for security features

FNBO Direct is an online-only bank and division of First National Bank of Omaha (which has been around for more than 165 years). It specializes in offering fee-free high-yield checking and savings accounts.

The high-yield savings account from FNBO Direct came in first in our rankings for the best security features. As an online bank, it leads the pack in terms of its security. With FNBO Direct, you can rest assured that your money and identity is protected by robust security features, including fraud protection measures, multi-factor authentication, website encryption, and more. Oh, and it comes with an impressive 5.15% APY.

SoFi Bank: Best for flexibility 

SoFi is an online bank that offers a wide variety of banking, lending, and investing products and services to its members. In addition to being FDIC-insured, SoFi is one of the few banks offering extra FDIC coverage of up to $2 million per depositor at no additional cost.

Banking with SoFi means banking on your terms, whether you want the flexibility to boost your earnings or let the occasional overdraft slip through without fearing excessive fees. That’s why it came in first place in our rankings for flexibility.

SoFi offers a whopping 4.50% APY on your savings—plus an additional 0.50% APY on your checking balance—when you open both a SoFi checking and savings account and set up direct deposit. Setting up direct deposit also makes you eligible for a welcome bonus of up to $250.

This SoFi checking-savings combo comes with a debit card and access to 55,000 surcharge-free ATMs across the country. Members also get access to exclusive rewards, like up to 15% off at qualifying local retailers and cash back on spending.

CIBC Bank Agility Digital Banking: Best for customer service

Headquartered in Chicago, CIBC Bank is backed by a 150-year-old global financial institution. It’s online-only banking division, Agility Digital Banking, provides a small suite of high-yield products, including savings and CD account.

CIBC is a great choice for those who want a high yield on their savings and appreciate a personal touch, which is why we named it No. 1 for customer service. Not only does Agility savings account provide 4.76% APY with no minimum balance required, it also offers extensive customer service hours, including evening and weekend access, in a time zone that’s convenient no matter where in the U.S. you’re located.

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High-yield savings accounts: Everything you need to know

What is a high-yield savings account (HYSA) and how does it work?  

A high-yield savings account isn’t that much different from a traditional savings account. Both are deposit accounts offered by financial institutions that allow you to set aside money and earn interest on the balance. The primary difference is that a high-yield savings account offers a much higher annual percentage yield (APY) on your funds than a typical savings account. And through the power of compound interest, you’ll earn interest on the principal balance and any interest you earned previously. That means you’ll essentially earn interest on your interest, allowing your savings to grow that much faster.

That said, there are a few other features of high-yield savings accounts that are important to understand:

• APY: Today, the national average savings account interest rate is 0.45%, according to the FDIC. However, most high-yield savings accounts offer at least 1% APY, and many offer rates in the 4% to 5% range. 
• Monthly fees: Some financial institutions charge a monthly fee that’s meant to cover the administrative costs of providing a savings account. However, this fee can easily wipe out any interest you earn. The good news is that monthly maintenance fees can often be waived if you meet certain requirements, such as linking a checking account or maintaining a minimum balance in the savings account. Better yet, many banks and credit unions offer savings accounts with no monthly fees at all. So when shopping around for a high-yield savings account, look for one that makes it easy to avoid fees.
• Minimum deposit requirements: The minimum deposit required to open a savings account and/or earn the specified interest rate varies widely. Some banks and credit unions offer savings accounts with no minimum deposit requirement, allowing customers to open an account with any amount—even just a few dollars. Other institutions might require a minimum deposit ranging from $25 to $100 or even more. (It’s more common for premium or specialty savings accounts to come with higher minimum deposit requirements.) It’s always a good idea to check with the specific financial institution regarding their minimum deposit requirements before opening an account.

How do banks set their savings account interest rates and why do they change?

Financial institutions set their savings account rates loosely based on the federal funds rate. This is the interest rate that banks charge other banks to lend money overnight. When the Fed raises its rates, this can increase the cost of borrowing and push banks to raise their APYs to attract new customers.  

The interest rate on a savings account is typically variable, meaning it can fluctuate over time. These rate changes are influenced by several factors, including monetary policy set by the Federal Reserve, general economic conditions, and competition among banks. It’s a good practice to periodically check the interest rates on your savings accounts and compare them with rates offered by other institutions to ensure you’re maximizing your earnings.

What is considered a good high-yield savings account rate?

What’s considered a “good” interest rate on a savings account somewhat depends. The national average savings account rate is 0.45%, so a rate above that benchmark would be considered above-average. However, many banks offer high-yield savings accounts offering as much as 4% to 5% APY. It pays to shop around to find the highest rates available if you’re looking for a new account.

Interest rate vs. APY: what’s the difference?

The interest rate on a savings account is essentially the base rate. The APY provides a more comprehensive view of your earnings by factoring in the effects of compounding and calculates how much you’ll earn over the course of a year.

What is 5% APY on $1,000?

To determine how much $1,000 will make in a high-yield savings account, you need to know the APY of the account and the length of time you plan to keep the money deposited. Additionally, the frequency of interest compounding (daily, monthly, or annually) can impact your final amount.

For example, if you deposited $1,000 into a high-yield savings account that earns 5% APY and compounds annually, you’d have a total balance of $1,050 at the end of one year (assuming you don’t make any more contributions). If the interest compounds daily, you’d have a bit more: $1,050.01

What is 5% APY on $10,000?

I you deposited $10,000 into a high-yield savings account that earns 5% APY and compounds annually, you’d have a total balance of $10,500 at the end of one year (assuming you don’t make any more contributions). If the interest compounds daily, you’d have $10,512.67.

Are high-yield savings accounts liquid?

In general, HYSAs are highly liquid accounts, meaning it’s fast and easy to access your funds when needed. Federal law used to dictate that account holders could transfer funds out of their accounts up to six times per month. However, this rule was paused in 2020 and you can now make an unlimited number of transfers and withdrawals from savings accounts in many cases. However, some financial institutions still limit the number of withdrawals allowed per month and may impose a fee for excessive transactions.

How safe are high-yield savings accounts?

High-yield savings accounts are generally safe, especially when they are held at banks that are insured by the FDIC or at credit unions insured by the NCUA. Both entities insure deposits up to $250,000 per depositor, per institution, for each account ownership category. 

Are high-yield savings accounts taxable?

The interest you earn in a high-yield savings account is usually subject to income tax. If you earn $10 or more in interest from a savings account in a year, the bank or financial institution will send you a Form 1099-INT, which reports the amount of interest you earned. Even if you don’t receive a Form 1099-INT (e.g., if you earned less than $10), you’re still generally required to report and pay tax on any interest income.

What are the pros and cons of high-yield savings accounts?

Before you open a high-yield savings account, it’s important to consider the pros and cons of putting your money in one.

Of course, one of the biggest benefits of a high-yield savings account is that you can earn higher interest rates on your balance. For example, the national average savings account rate is just 0.45% APY today, while some of the high-yield accounts on our list have rates above 5.00%. 

You can also rest assured that your money is safe in a high-yield savings account, which unlike some types of investments, will never allow you to lose money. Plus, most high-yield accounts are insured by the FDIC (banks) or NCUA (credit unions) up to $250,000 per depositor, per institution in the event of a bank failure. 

That said, there are some downsides to keeping your money in an HYSA. For one, even high-yield savings accounts don’t offer the same level of earnings as  investing your money in the market. But high-yield savings accounts are still sensitive to market fluctuations, and the APY can go up or down at the discretion of your bank. 

You may also be limited in how many monthly withdrawals you can make. Your financial institution might charge a fee for each additional transaction over the limit.

Is it worth putting money a high-yield savings account?

A high-yield savings account is an important tool that just about anyone should have as part of their larger financial plan. That said, an HYSA can be particularly useful when pursuing certain financial goals. A few common ways to leverage a high-yield saving account include:

• Emergency fund: If there’s one thing financial experts agree on, it’s that you need to have emergency savings set aside. A high-yield savings account is a great place to keep those funds, since you can access your money easily when needed.
• Savings for big ticket expenses: Maybe you’re saving up for a down payment on a car or a dream vacation. A high-yield savings account allows you to earn more interest on your savings in the meantime while keeping your money safe.
• Stashing extra cash short-term: If you’ve sold a significant asset (like a home) or received a windfall and are deciding on your next financial move, a high-yield savings account provides a secure place to keep the funds while you decide.

However, a high-yield savings account isn’t always the best place to put your money. There are other types of deposit accounts to consider as well:

HYSA vs. CD

High-yield savings accounts and CDs are both savings vehicles that offer higher interest rates than traditional savings accounts. However, while high-yield savings accounts provide relatively easy access to funds with a variable interest rate, CDs lock in your money for a specified term (from a few months to several years) at a fixed interest rate. Withdrawing funds from a CD before its maturity date typically incurs a penalty, which can reduce the earned interest. On the other hand, high-yield savings accounts may have limits on the number of monthly withdrawals but offer more liquidity than CDs. When choosing between the two, it’s crucial to weigh the importance of access to funds against potentially higher fixed returns with CDs.

HYSA vs. money market account

High-yield savings accounts work similarly to money market accounts (MMAs) in that you’ll earn interest on your balance and can easily access your funds. While high-yield savings accounts prioritize offering a competitive interest rate, MMAs often combine the features of both savings and checking accounts, providing both interest earnings and more flexible access to funds, such as through checks or debit cards. However, MMAs might require higher minimum balances to avoid fees or to earn the advertised rate. 

Overall, a high-yield savings account would be the best choice in situations where you prioritize earning a competitive interest rate on your money while maintaining relatively easy access to the funds, without exposing the principal to market risk.

How to choose the best high-yield savings account for you

Choosing the right high-yield savings account requires careful consideration of your financial needs, preferences, and goals. Here are a few considerations to keep in mind as you shop around.

• Interest rates: One of the most important features of a savings account to evaluate is the interest rate, or APY. This dictates how much your money can earn; the higher the rate, the more your money can grow over time. Start by reviewing the national average rates for savings accounts, which are regularly updated by the FDIC. Then look for a high-yield savings account that offers a rate at least 10 times that average. 
• Balance requirements: Some accounts require a minimum balance to avoid fees or to earn the advertised APY. Ensure you’re comfortable with any minimum balance requirements. Or better yet, look for an account that doesn’t have any minimums, especially if you’re just getting started with saving and don’t have a large balance built up yet. 
• Fees: Be wary of monthly maintenance fees, excessive withdrawal fees, and other charges that could eat into your interest earnings. Some accounts may waive fees if you maintain a minimum balance or meet other criteria, while others don’t charge these types of fees at all. Decide what types of fees you’re comfortable with and whether the perks of the account outweigh the potential costs.
• Account access: Many high-yield savings accounts are provided by online banks, which means you may not have physical branch access. If that’s the case, be sure the account offers access in other ways, such as via a large ATM network. Alternatively, you might prefer a financial institution that offers face-to-face support.  
• Digital tools: If you prefer the convenience of digital banking, be sure the account you choose is offered by a bank with robust online features and tools, such as a user-friendly mobile app, free and fast online transfers, digital deposits, and other tech-friendly options.
• Customer service: Finally, it’s important to consider how you’ll get in touch with a representative if you have a question or need help with your account. Some financial institutions take a hands-off approach and don’t offer easy access to a real human. Others are just a phone call or email away. Make sure the bank’s customer service options are aligned with your preferred method of communication. 

How to open a high-yield savings account

When you’re ready to open an account, you’ll follow these general steps:

1. Research financial institutions: Before opening an account, research various financial institutions to compare interest rates, fees, features, and customer reviews. Decide whether you’re comfortable with an online-only bank or prefer a bank or credit union with physical branches.
2. Check the requirements: Find out if you need a minimum deposit to open an account or if you’re expected to maintain a minimum balance to avoid fees. Be sure you understand the terms of the account fully.
3. Visit the bank or apply online: Whether online or in-person, you’ll need to contact the financial institution for an application and be prepared to share the details mentioned below. Online applications often allow you to save and return if needed.
4. Fill out the application: You will need to provide some personal information, including your Social Security number or individual taxpayer identification number, a valid ID (such as a passport or driver’s license), and contact information.
5. Deposit funds: When your application gets approved, all that’s left is to deposit your funds into the account and start earning.  

Our methodology 

To narrow down our top picks for the best high-yield savings accounts, the Fortune Recommends™ team evaluated more than 50 online savings accounts from a variety of traditional brick-and-mortar banks, online banks, and credit unions. 

All the accounts on our list are available to customers in the U.S. no matter where you’re located, subject to the terms of each account. The savings accounts on this list offer an APY at least 10 times the national average. 

We ranked each account in these five core categories: 

• APY (50%): This number represents the real rate of return on your balance; the higher the APY, the better. 
• Monthly fees (15%): Some banks charge monthly maintenance fees. We ranked banks with lower (or zero) monthly fees higher on the list.  
• Minimum amount to earn APY (15%): To earn the high APY, some banks require that you maintain a certain dollar amount in the account, which we view as a limiting factor. 
• Minimum opening deposit (15%): Some financial institutions require a deposit amount when you open your account. We rate a higher opening deposit as less attractive. 
• Customer support (5%): Top picks offer customers various ways to get in contact: chat support, by phone, or even email—phone support was weighted more heavily. 

The rates and fee structures for the accounts mentioned are available for limited periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank accounts and credit unions on this list are insured by the FDIC and NCUA, respectively. To open an account, financial institutions, including banks and credit unions, require a deposit of new money, so you may not be able to transfer money you already had in an account at that bank. 

We measured the same savings accounts and chose our top pick based on the following metrics: 

Category 1: Maximizers 

• APY 
• Monthly fees
• Welcome bonus
• The ability to round-up transactions for extra savings

Category 2: Convenience 

• APY 
• Mobile app rating across both Apple and Google storefronts 
• Physical ATM card or debit card privileges 
• ATM network size 
• Customer service options 

Category 3: Security 

• APY
• Fraud protection 
• Multi-factor authentication (MFA) 
• Website encryption 
• Automatic session timeout 

Category 4: Flexibility

• APY 
• Minimum balance requirement 
• Overdraft protection 
• Rewards 
• Budgeting and/or money management tools 
• Educational resources 

Category 5: Access

• APY 
• Physical branches 
• Extended customer service support during evenings and weekends 
• Customer service options