Our Guide to Finding the Best Savings Account Interest Rates at Banks
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Sabrina Karl has over two decades of experience writing about savings, CDs, and other banking topics. She is currently a staff writer at Investopedia and one of the country's top experts on how to earn as much as possible on the money you hold in the bank. She previously wrote for Bankrate.com, CreditCards.com, DepositAccounts.com, and RateSeeker.
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Updated December 18, 2023
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We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. The annual percentage yields (APYs) listed below are up to date as of the date of publication on this article. Our methodology consists of reviewing savings account rates every weekday morning and updating the information below accordingly. The top rate you currently can earn from a nationally available savings account is 5.50% APY, offered by Milli. That's nearly 12 times the FDIC's national average for savings accounts of 0.46% APY, and it's just one of the top rates you can find in our rankings below. Culled from our weekly rate research on about 100 banks and credit unions that offer nationwide high-yield savings accounts, even the 10th-best rate on the list pays 5.25% APY. Below you'll find featured savings account rates available from our partners, followed by our complete ranking of the best savings account rates nationwide. Savings account rates reached higher in 2023 than we’d seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. For its last three meetings, however, the Fed has held the federal funds rate steady, and in its Dec. 13 rate announcement, Fed Chair Jerome Powell indicated the committee’s rate-hike cycle ismost likely complete. Further, most Fed members project that two to four rate cuts will occur by the end of 2024. Because savings account yields closely follow the fed funds rate, the Fed’s current holding pattern has caused savings rates to plateau, and declines should be expected once it appears the Fed is ready to make its first cut. This week's top nationally-available savings account rates are listed below in order of APY. Where more than one institution has the same rate, we've ranked accounts by those requiring the smallest ongoing balance. Note that some banks call their savings accounts "money market" accounts. Money market accounts traditionally offer the ability to write checks, while savings accounts do not. The accounts listed here all lack check-writing privileges, even if the name might suggest otherwise. It's smart to also check our ranking of the best money market accounts, many of which pay comparable interest rates while also offering the ability to write checks. *This savings account is accessible only via a mobile app. *Not available to residents of Kansas and Missouri Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: TotalDirectBank is available to customers nationwide except for Florida residents. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Pays interest on your balance Allows you to add or withdraw funds at any time Extremely safe, with virtually no risk When rates are rising, your savings APY could increase Scoring a high yield may require opening the account at another bank Earnings will be lower than on riskier investments Easy access to your money could make it tempting to spend it When rates are falling, your APY could drop Instead of a bank savings account, you have other liquid options that still provide ready access to your funds. Another product that's offered by some banks is a money market account. These work almost exactly the same way as savings accounts, but with the added feature of allowing you to write paper checks. And if you shop around, you can find money market accounts pay rates that are competitive with high-yield savings accounts. Another liquid option is a cash reserve account at a brokerage firm. If you have an investment account at Fidelity, Vanguard, or any other brokerage, you can hold cash that's not invested in either a cash reserve account or a money market fund (not to be confused with a bank money market account). Though withdrawing funds will require an electronic transfer to your bank, it is easy to do and will only take one to three days before you can access the money. If you can live without some of your savings for months, a year, or even much longer, you can sometimes earn substantially more by putting some of your savings into a certificate of deposit (CD). These bank and credit union accounts allow you to lock in a fixed rate for the full duration of the CD term, making them great options when rates are high but likely to fall in the near future, as you can prolong the amount of time you earn the current high rates. But in exchange, you'll be charged an early withdrawal penalty if you withdraw the funds before maturity. The most common CD terms range from 3 months to 5 years, and you can always find the top nationwide rates for any term in our daily ranking of the best-paying CDs. Various types of bond options exist as well, from those issued by the U.S. government to those issued by corporations. I Series savings bonds, known as I bonds, are issued by the U.S. Treasury, with a yield that is indexed to current inflation rates. Though I bonds can sometimes offer very attractive rates, your return is unpredictable because the interest rate is recalculated every May and November. You can also lend money to the U.S. government by purchasing a T-bill, which is a Treasury note with a duration of one year or less. Treasuries are considered one of the safest investments in the world, but their rates are not always as high as the best high-yield savings accounts. You can also put savings into bond exchange-traded funds (ETFs), which are available in brokerage accounts and represent a bundle of various types and durations of bonds. Though you can easily enter and exit a bond ETF, bond returns are not guaranteed, and losses in value could erode your principal investment. Opening a savings account helps you maximize what you earn from the money you keep at a bank or credit union. While it's true that some checking accounts pay interest, the vast majority don't, and even many of the ones that do pay only pay a pittance. If you have more money in the bank than needed to cover the daily transactions that go on in your checking account, a savings account lets you earn interest on that surplus cash. Another benefit of opening a savings account is that it can help you organize your money according to your needs and goals. For instance, you can use a savings account to hold your emergency fund or to collect money you're accumulating for a large financial goal, like a home purchase or future vacation. By keeping these funds separate in a savings account, you can easily distinguish them from what's available for monthly bills and day-to-day spending in your checking account. You can see in our ranking of the top savings account rates that many of the best APYs come from online banks, whether those are online operations of brick-and-mortar banks or outright internet-only banks. You also may notice an absence of the biggest bank names you know. Chase Bank, Bank of America, and Wells Fargo—three of the country's four largest banks by assets—offer savings account rates far below the national average. Competing heavily for deposit funds is something they simply don't do, as their business model and size enable them to secure sufficient capital from other sources. What you can count on from our rankings is that these are the very highest savings account rates offered in the country from institutions that are open to customers nationwide. We do not rank them according to advertising or sponsorship relationships, or any criteria other than APY, nationwide availability, and a minimum deposit of $25,000 or less. Though opening an account online can feel less safe than walking into a traditional brick-and-mortar bank to open an account, online banking is just as safe. That's because online banking operations that belong to a physical bank, as well as those that are internet-only banks, carry the same FDIC coverage. If the website for the online bank you're considering says "FDIC member" or carries the FDIC logo, its protections to you as a depositor are identical to the FDIC coverage at a brick-and-mortar bank. When you bank at an FDIC-member bank (or an NCUA-insured credit union), up to $250,000 of your funds are safe even if the bank or credit union fails. Most banks that offer savings accounts allow you to open more than one. Why would you want to do this? Let's say you want to stash $15,000 in an emergency fund, but you're also making monthly deposits from your checking account to save for a big trip. By opening two accounts, you can keep these two different pots of money visually and mentally separate, making it easy to see how much you've accumulated toward your vacation goal. Some banks even let you give each account a nickname of your choosing. It can also be smart to keep different savings accounts at different banks. For instance, you can keep some funds in a savings account at the same bank where you have your primary checking, so that you have some surplus funds on hand if you need to make an instant transfer to checking. But then you can keep a larger portion of your savings in a high-yield account elsewhere, so it can earn a much higher return. Having funds at an outside bank may also help lessen the temptation to spend those funds. Unlike a CD, which has a guaranteed rate that's locked in for the full CD term, interest rates on savings and money market accounts are variable. That means a bank can raise them when the general interest rate environment is rising, or lower them when rates are declining. In fact, the bank can alter the rate it pays you at any time, for any reason. What's more, the bank is not required to give you any advance warning. Every business day, Investopedia tracks the rate data of about 100 banks and credit unions that offer high-yield savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts first and foremost by the annual percentage rate (APY) offered. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the savings account's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the savings account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms. For more about how we choose the best high-yield savings accounts, read our full methodology.In the News
Best Savings Accounts
Milli – 5.50% APY*
Popular Direct, Select Savings – 5.35% APY
My Banking Direct, High Yield Savings Account – 5.35% APY
North American Savings Bank, Interest Savings - 5.35% APY*
BrioDirect, High-Yield Savings Account – 5.35% APY
Vio Bank, Cornerstone Money Market Savings Account – 5.30% APY
Ivy Bank, High-Yield Savings Account – 5.30% APY
TAB Bank, High Yield Savings Bank – 5.27% APY
TotalDirectBank, Money Market Account – 5.26% APY
Newtek Bank, Personal High Yield Savings – 5.25% APY
UFB Direct, Secure Savings Account – 5.25% APY
Valley Direct, High-Yield Savings Account – 5.25% APY
Evergreen Bank Group, High-Yield Online Savings – 5.25% APY
CFG Bank, High Yield Money Market Account – 5.25% APY
EverBank (formerly TIAA Bank), Yield Pledge Online Savings – 5.15% APY
RBMAX, Max Interest Savings – 5.15% APY
Bread Savings, High-Yield Savings Account – 5.15% APY
Western State Bank, Online Money Market Account – 5.15% APY
Pros and Cons of Savings Accounts
Pros Explained
Cons Explained
Alternatives to Savings Accounts
Other Liquid Accounts
Certificates of Deposit
Bond Products
Frequently Asked Questions (FAQs)
What Are the Advantages of a Bank Savings Account?
Why I Don't See My Bank's Name in Your Ranking?
Are Online Savings Accounts Safe?
Can I Open More Than One Savings Accounts?
Are Savings Account Rates Guaranteed?
Rate Collection Methodology
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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
FDIC. "National Rates and Rate Caps."
FDIC. "Deposit Insurance."
Federal Reserve. "Large Commercial Banks-March 2023."
As a seasoned expert in personal finance with a particular focus on savings, CDs, and banking, I bring over two decades of experience to the table. My expertise is not only demonstrated through my extensive writing background but also by my current role as a staff writer at Investopedia. I have previously contributed to reputable platforms such as Bankrate.com, CreditCards.com, DepositAccounts.com, and RateSeeker.
The article in question, authored by Sabrina Karl, provides a comprehensive guide to finding the best savings account interest rates at banks. Sabrina, along with the editorial team, maintains a rigorous methodology for evaluating savings account rates, updating the information regularly to ensure accuracy. The piece is thoroughly fact-checked by financial professionals such as Michael J Boyle and Michael Rosenston.
As of the most recent update on December 18, 2023, the article presents a detailed list of the best savings account interest rates available nationally. Notably, it emphasizes the impact of the Federal Reserve's rate-hike campaign in 2022 on savings account rates, with a subsequent plateau due to the Fed's holding pattern.
The top savings account rates, ranging from Milli's 5.50% APY to EverBank's 5.15% APY, are highlighted, offering readers a snapshot of the current competitive landscape. Each bank's minimum opening deposit, ongoing balance requirements, fees, and additional features are meticulously outlined, providing a comprehensive overview for potential savers.
Furthermore, the article delves into the pros and cons of savings accounts, emphasizing their safety, liquidity, and the potential impact of interest rate fluctuations. It also addresses alternatives to savings accounts, including other liquid accounts, certificates of deposit (CDs), and bond products.
To enhance reader understanding, the piece answers frequently asked questions (FAQs) related to the advantages of bank savings accounts, the absence of certain bank names in the rankings, the safety of online savings accounts, the option to open multiple savings accounts, and the variability of savings account rates.
The article concludes with a transparent disclosure of the rate collection methodology employed by Investopedia, ensuring readers are informed about the criteria used to evaluate and rank high-yield savings accounts. Overall, the information presented is designed to empower readers in making informed decisions about maximizing returns on their savings.
