The 10 best high-yield savings accounts for June 2023

BYIvana Pino

It can be difficult to choose a high-yield savings account, especially since there are so many options out there and rates change over time. Right now, the national average APY on savings accounts is currently 0.40% as of May 15, 2023, according to the Federal Deposit Insurance Corporation (FDIC).

So which one should you choose? According to our research, the best high-yield savings account is currently offered by Varo Bank, where you can earn an APY of 5.00%, over 12 times the national average.

However, APY is not the only factor by which to choose an account that meets your needs. The Fortune Recommends editorial team curated a list of the top 10 high-yield savings accounts based on APY, account fees, minimum deposits and balances, and customer support options. In addition, all accounts listed below are insured by the FDIC. (Read here for our full methodology.)

Current APYs for the accounts that made our top 10*

*Last updated June 1, 2023

The 10 best high-yield savings accounts overall

The high-yield savings account you choose can make a huge difference in how much you’re able to save in a given time and how quickly you’ll hit your bigger financial goals. (Note: APYs in our top-10 list below are up to date as of May 4, 2023, but are subject to change.)

1. Varo Bank: For the saver who carries a small balance but still wants the highest APY available

About: Varo Bank is an FDIC-insured, online-only bank that provides services online or via mobile app, with zero physical branches. Varo offers a savings account, cash advances, a credit-builder card, and more. Varo also has an expansive ATM network with more than 55,000 Allpoint ATMs worldwide. You can find them in stores like CVS, Walgreens and Target.

Key numbers

APY: 5.00%

Fees: $0

Minimum amount needed to earn APY: $0

Minimum opening deposit required: $0

Customer support

Varo offers chat support seven days a week, from 8:00 a.m. to 4:30 p.m. MT. Representatives are not available on Thanksgiving, Christmas, and New Year’s Day. You can also reach Varo by sending an email to support@varomoney.com. Support by phone and email is available Monday through Friday, from 8:00 a.m. to 4:30 p.m. MT, as well as on federal holidays from 8:00 a.m. to 4:30 p.m. MT. Services by phone and email are not available on Thanksgiving, Christmas, and New Year’s Day.

Why we picked it

Varo’s high-yield savings account took the top spot on our list for boasting the highest APY at 5.00%—over 12 times the national average. Savers should be aware that this APY only applies up to the first $5,000 in your account, you can expect to earn a 3.00% APY on higher balances. This account doesn’t charge any fees or tie savers to minimum balance requirements.

Related banking products at Varo Bank

Online bank account: 0% APY
Varo Believe Credit-Builder Card: 0% APR
Varo Cash Advance: $20–$250

2. UFB Direct: For the saver who wants the highest APY available

About: UFB Direct is a division of Axos Bank. While it is an online bank, customers have access to free ATM withdrawals at approximately 91,000 locations across the nation. Account holders can also make unlimited external bank transfers.

Key numbers

APY: 4.81%

Fees: $0

Minimum amount needed to earn APY: $0

Minimum opening deposit required: $0

Customer support

UFB Direct offers 24/7 live support via phone, plus mail, email, and chat support.

Why we picked it

UFB Direct’s high-yield savings account took the second spot on our list for its competitive APY of 4.81% with no fees or account minimums. The UFB preferred savings account also comes with a complimentary ATM card and digital tools for remote banking. What’s more, the account’s high APY extends to savers with balances of $0 and those with balances higher than $100,000. This bank also offers expansive customer support features—beyond the traditional lines of communication, customers can use SMS messaging to access account features and information.

Related Banking Products at UFB Direct

Money market account: 4.81% APY
Expanded FDIC coverage: Up to $150 million in deposits

3. Primis Bank: For the saver who wants a competitive APY without hidden costs or fees

About: Primis Bank is a tech-first financial institution with all of the security and insurance of a big bank and the digital-first approach of a tech company. It currently offers a personal checking account, savings account, and CDs, as well as business checking and savings options.

Key numbers

APY: 4.77%

Fees: $0

Minimum amount needed to earn APY: $0

Minimum opening deposit required: $1

Customer support

Customer support representatives are available 24/7/365 via phone, chat, and email.

Why we picked it

Primis Bank’s personal savings account took a spot on our list for its 4.77% APY, which is more than 12 times the national average. Savers can take advantage of this APY by opening an account with just $1. This account doesn’t charge any service fees, incoming wire fees, and there are no transaction limits. Interest on your balance is compounded monthly. Beware: This account isn’t available for savers who are located in Puerto Rico or other US territories.

Related Banking Products at Primis Bank

Primis Perks Checking: 0% APY, earn 50 cents per purchase
Primis Premium Checking: 4.77% APY
Certificates of deposit: Up to 1.80% APY

4. Salem Five Direct: For savers who prefer around-the-clock service

About: Salem Five Direct is a subsidiary of Salem Five Bank, based in Salem, Mass., and has local branches across Boston. For online customers hoping to access their funds, Salem Five offers fee-free ATM access at 55,000 Allpoint ATMs worldwide. It offers checking accounts, savings accounts, money market accounts, and more.

Key numbers

APY: 4.61%

Fees: $0

Minimum amount needed to earn APY: $0

Minimum opening deposit required: $10

Customer support

Salem Five Direct customers can contact a customer service representative via telephone 24 hours a day, 365 days a year, or via chat or email.

Why we picked it

Salem Five’s high-yield savings account boasts a competitive APY at 4.61% and zero monthly fees. There is a minimum deposit of $10 required to open an account, but after that there is no minimum balance requirement to start benefiting from the high APY. While physical branches are limited, Salem Five offers a wide range of customer service options with 24/7 service.

Related Banking Products at Salem Five Direct

Free checking account: 0.01% APY
Checking and savings account combo: 0.01% and 4.61% APY
High-yield certificates of deposit (CDs): Up to 5.00% APY

5. Bask Bank: For the saver who prefers a human touch

About: Bask Bank is an online-only division of Texas Capital Bank, an established FDIC-insured bank headquartered in Dallas. The bank does not provide savings account holders with an ATM card or debit card. To withdraw or move funds you’ll need to send money via ACH transfer to an external bank account. Bask Bank offers two types of savings accounts: One is a high-yield savings account; the other is a partnership with American Airlines that offers account holders the opportunity to earn Airlines AAdvantage® miles.

Key numbers

APY: 4.75%

Fees: $0

Minimum amount needed to earn APY: $0

Minimum opening deposit required: $0

Customer support

Bask Bank offers its customers support via telephone or email. Representatives are available Monday through Friday from 7:00 a.m. to 7:00 p.m. CST and Saturday from 9:00 a.m. to 4:00 p.m. CST.

Why we picked it

The Bask Bank high-yield savings account offers a competitive rate at 4.75%—just over 12 times the national average. Despite its lack of ATMs and physical branches, customers can contact customer service representatives, even later than normal business hours and on weekends. Account holders are not required to pay any fees or meet minimum balance requirements, though they must fund their account within the first 15 days of opening their account.

Related Banking Products at Bask Bank

Bask Mileage Savings: This account earns 2 American Airlines AAdvantage^® Miles per $1 saved annually instead of interest
Certificates of deposit: Up to 4.85% APY

6. Bread Savings: For savers who don’t plan on letting their balance dip below $100

About: Bread Savings is an online-only bank that’s part of the Ohio-based financial services company Bread Financial. The bank offers just two types of deposit accounts: high-yield savings and certificates of deposit.

Key numbers

APY: 4.65%

Fees: $0

Minimum amount needed to earn APY: $100

Minimum opening deposit required: $100

Customer support

Customer service representatives can be reached seven days a week via phone. They are available weekdays from 7 a.m. CST to 9 p.m. CST. Representatives can also be reached on weekends between 9 a.m. CST and 5 p.m. CST. Messages can also be sent to the bank through its secure online platform or mailed to its Columbus, Ohio offices.

Why we picked it

Bread Savings’ high-yield savings account made our list for its zero-dollar fee structure and competitive APY. What’s more—interest on this account accrues and is compounded daily, giving your account balance even more opportunities to grow.

Related Banking Products at Bread Savings

Certificates of deposit: Up to 5.20% APY

7. TAB Bank: For the saver who cares more about a high APY than ATM fees

About: TAB Bank is an online bank headquartered in Utah that offers a number of banking products, including savings, checking, money market, and certificates of deposit (CDs) accounts. TAB Bank doesn’t offer any free ATM access, and customers will have to pay a fee for using an out-of-network ATM if that’s how they choose to withdraw funds from their savings account.

Key numbers

APY: 4.40%

Fees: $0

Minimum amount needed to earn APY: $1

Minimum opening deposit required: $0

Customer support

TAB Bank offers phone, chat, and email support to its customers. The customer service hours of operation are 6 a.m. to 7 p.m. MST, Monday through Friday, and 9 a.m. to 3 p.m. MST on Saturday. Federal holidays are excluded.

Why we picked it

The TAB Bank high-yield savings account offers a higher APY than many other high-yield savings accounts without tacking on numerous fees. With no balance caps or minimums on how much of your money you can earn interest on, this is a decent option for big savers, as well as those who are just getting started. Interest on these accounts compounds daily, meaning that you’ll start earning interest on the first dollar you deposit—and the earnings will grow from there.

Related Banking Products at Tab Bank

Money market account: 0.25% APY
Free rewards checking account: 0.10% APY
Certificates of deposit: Up to 4.50% APY

8. Upgrade: For savers who prefer a fintech with all of the big bank perks

About: Upgrade is a younger fintech company that was founded in the late 2010s and offers consumer credit cards, checking and savings options, personal loans, credit monitoring and education tools, and more.

Key numbers

APY: 4.56%

Fees: $0

Minimum amount needed to earn APY: $1,000

Minimum opening deposit required: $0

Customer support

Upgrade customer support representatives are available via phone, email, and an upcoming live chat feature on weekdays from 5:00 a.m. to 7:00 p.m. PT, and weekends from 6:00 a.m. to 5:00 p.m. PT.

Why we picked it

Upgrade’s Premier Savings account made our list for its stellar customer service avenues and its competitive 4.56% APY on balances of $1,000 or more. This account also spares savers from monthly service fees and transfer fees that could make it harder to hit their savings goals. This fintech also has an average mobile app rating of 4.7 on the App Store and Google Play, making it a solid option for mobile-first savers.

Related Banking Products at Upgrade

Rewards checking account: 2% cash back on everyday expenses, 1% on all other purchases

9. Citizens Bank: For savers who are looking for other products in addition to a high-yield savings account

About: Citizens Bank is headquartered in Providence, and is one of the oldest banks in the U.S. Its product offerings include savings accounts, checking accounts, credit cards, student loans, home loans, auto loans, and investment management services. It also offers small business and corporate banking products. Customers can enjoy free withdrawals at any Citizens Bank ATM, plus access to a network of over 2,700 surcharge-free ATMs.

Key numbers

APY: 4.50%

Fees: $0

Minimum amount needed to earn APY: $0.01

Minimum opening deposit required: $0.01

Customer support

For questions related to your account, representatives are available Monday through Friday 7:00 a.m. to 10:00 p.m. ET, as well as Saturday and Sunday 9:00 a.m. to 6:00 p.m. ET. The bank’s website also offers an automated chat feature.

Why we picked it

Citizens’ high-yield online savings account scored a spot on our list for its high APY, paired with zero fees and low minimums. What’s more—this bank also offers extended customer service hours on late nights and weekends for customers who need assistance.

Related banking products at Citizens Bank

One Deposit Checking: 0% APY
Citizens EverValue Checking: 0% APY
Student Checking: 0% APY
Citizens Quest Checking: 0.05% APY
Money market accounts: Up to 2.00% APY
Online certificate of deposit: Up to 2.75% APY

10. CIT Bank: For savers who don’t mind an online-only bank

About: CIT bank is a division of First Citizens Bank and has a network of more than 600 branches in 22 states. The bank offers savings and checking accounts, lending products, and more.

Key numbers

APY: 4.50%

Fees: $0

Minimum amount needed to earn APY: $100

Minimum opening deposit required: $100

Customer support

CIT representatives can be reached by phone Monday through Friday from 9:00 a.m. to 9:00 p.m. ET, Saturday 10:00 a.m. to 6:00 p.m. ET. The bank also offers 24/7 automated telephone support, and secure emailing within the mobile app.

Why we picked it

CIT’s Savings Connect account made our list for its 4.50% APY and zero-fee structure. The bank also offers online and mobile banking, as well as remote check deposit. This bank is an online-only bank, so savers who prefer the in-person experience may want to consider other options on our list. However, CIT does offer extended customer service hours during the week.

Related Banking Products at CIT Bank

Platinum Savings: 4.75% APY
Money market account: 1.55% APY
Savings Builder: 1.00% APY
eChecking: Up to 0.25% APY
Term CDs: Up to 5.00% APY
No-penalty CD: 4.80% APY
Jumbo CDs: Up to 0.50% APY
RampUp CDs: 0.25% APY

All high interest savings accounts that currently offer 4% APY or higher

Note: APYs in the list below are up to date as of May 4, 2023, but are subject to change.

Varo: 5.00% APY
UFB Direct: 4.81% APY
Ivy Bank: 4.80% APY
Primis Bank: 4.77% APY
Bask Bank: 4.75% APY
CIT Bank: 4.75% APY
Popular Direct: 4.75% APY
Bread Savings: 4.65% APY
Salem Five Direct: 4.61% APY
Upgrade: 4.56% APY
CIT Bank: 4.50% APY
Citizens Bank: 4.50% APY
First Foundation Bank: 4.50% APY
GO2Bank: 4.50% APY
Tab bank: 4.40% APY
My Banking Direct: 4.38% APY
CIBC bank: 4.37% APY
MySavingsDirect: 4.35% APY
BMO Harris: 4.30% APY
LendingClub: 4.25% APY
Rising Bank: 4.25% APY
TIAA Bank: 4.25% APY
Apple: 4.15% APY
Synchrony: 4.15% APY
Prime Alliance Bank: 4.05% APY
Quontic: 4.05% APY
Barclays: 4.00% APY
Credit Karma Money Save: 4.00% APY
Current: 4.00% APY
HSBC: 4.00% APY
Live Oak Bank: 4.00% APY
SoFi: 4.00% APY

What you should know about high-yield savings accounts

What is a high-yield savings account?

A high-yield savings account works in the same way as a traditional savings account. It’s a deposit account at a credit union or bank that you can use for saving and earning interest on your money.

The main difference between a high-yield savings account and a traditional savings account is that the high-yield savings account will offer a much higher yield—known as the annual percentage yield (APY)—on the money you keep in your account.

The most recent rates from the Federal Deposit Insurance Corporation (FDIC) puts the national savings APY average at 0.39%, while most high-yield savings accounts offer 1.00% APY or higher.

The APY on your account can and likely will fluctuate any time the Fed raises or decreases the federal funds rate. That’s the interest rate banks charge one another to borrow money, and your bank may be inclined to raise or lower rates on its financial products based on these changes.

So how does a high-yield savings account actually work? Your money will grow thanks to the magic of compound interest. This means you’ll earn interest on the principal balance in your account, as well any interest you earned previously. For example, if you deposited $100 in your account and earned $10 in interest over the past few months, you will earn interest on the entire $110.

The rate at which your interest compounds (daily, weekly, monthly, annually) will depend on the financial institution.

Pros and cons of high-yield savings accounts

If you’re considering putting your money in a high-yield savings account, there are a few key benefits and drawbacks to be aware of.

Pros

High-yield savings accounts typically earn a competitive interest rate above national averages. One of the key benefits of a high-yield savings account is the generous APYs that most financial institutions offer savers. Currently, the national average for a traditional savings account sits at 0.39%, whereas some of the high-yield accounts on our list boast APYs as high as 5.00%.
A high-yield savings account offers more security than other investment options. Unlike other investments, most high-yield accounts are FDIC or NCUA-insured, meaning that your deposits are protected in the event of a bank failure.

Cons

There may be a cap on your monthly withdrawals. The goal of a high-yield savings account is to keep your hands off of your savings. As a result, your financial institution may limit the number of withdrawals you’re able to make within a given period.
Your interest rate will likely fluctuate. High-yield savings account APYs are sensitive to changes in the economy, which means that your APY can increase or decrease at a moment’s notice.

Best uses for a high-yield savings account

High-yield savings accounts can be an effective savings vehicle for savers with many different types of goals. A few common uses for high-yield saving accounts include:

Emergency savings: You’ll never know exactly when you’ll need to dip into your emergency savings. A high-yield savings account is a liquid account that makes it easy to access your funds in a pinch.
Savings for major purchases: Say you want to purchase a new home appliance or save for a down payment on a new vehicle that you plan to purchase within the next few months. A high-yield savings account can help you earn interest on your savings until its time to make your purchase.
Short-term financial goals: A high-yield savings account is a great place to stash your cash for a specific goal like saving for a family vacation or home renovation.

How to pick a high-yield savings account

Choosing the right high-yield savings account will require you to think carefully about your financial habits, preferences, and goals so that you can select the account that best suits your needs.

Shop around for a lucrative APY. Your APY is the interest you can expect to earn on the money you keep in your account over the course of a year. While this percentage may fluctuate depending on your bank and the health of the economy, you’ll want to give your savings the greatest chance of growing and earning as much compound interest as possible. The FDIC regularly publishes average national rates for various accounts, including high-yield savings accounts so this is a good resource to use when shopping around for rates. Ideally a lucrative high-yield savings account will offer a savings rate that is 10 times that rate—if not more. Another key stat to pay attention to: compounding frequency, which is the rate at which interest is earned and added to your balance. Ideally you want an account that compounds more frequently.
Consider the requirements for opening an account. Many, but not all, high-yield savings accounts require a minimum deposit to open your account. This figure can vary widely across financial institutions, with some requiring no minimum deposit and others requiring a minimum deposit well into the thousands. If you’re a new saver, you may not be in a position to opt for an account that requires a higher minimum deposit.
Read the fine print on fees. Certain accounts may charge fees for maintaining your account, transferring funds, and more. An excessive fee structure can eat into your balance if you’re not keeping close tabs on your account. Weigh the different fees you could become responsible for and determine if the perks that come with the account outweigh potential penalties down the line.
Ask yourself how important it is to have access to your funds. Not all high-yield savings accounts will come with physical branch access or a large ATM network. If you’re on the hunt for an account that will provide you with face-to-face support and easy access to your funds, double check that the financial institution you’re considering banking with has locations and ATMs in your area.
Review online and mobile platforms for usability. If you prefer to do your banking on your desktop or phone, spend some time exploring the online and mobile platforms for each account you’re considering. Read Apple App Store and Google Play reviews to learn more about the digital platforms and tools that may be available to you and what kinds of features and services are available on those platforms.
Weigh available customer service options. Lastly, it’s important to know how you’d get in contact with a representative should you have any questions or issues related to your account. Some financial institutions take a digital-first approach and don’t offer easy access to a real human. Others prefer a phone call over chat or email options; make sure your account aligns with the route you usually take when an issue crops up.

Taxes: What you need to know

If you choose to park your savings in a high-yield saving account, you should be aware of the tax implications that come with it. Interest earned on the money in your account is considered taxable interest by the IRS. Your financial institution will typically send you a 1099-INT statement for any interest earned over $10, and the amount you’ll owe will depend on how much interest you’ve earned and your tax bracket.

How high-yield savings accounts compare to other savings accounts

High-yield savings accounts differ from other types of deposit accounts in a few key ways.

Access to your savings: High-yield savings accounts are more liquid than other types of accounts like CDs, for example. Withdrawing money from a CD before your maturity date could result in an early withdrawal penalty. With a high-yield savings account, you may still be limited in how many withdrawals you can make within a certain period of time, but you still have some access to your money. Similar to a traditional savings account and money market account, you may also have debit card and/or check privileges.
High-yield savings accounts offer variable APYs: The APY on your high-yield savings account fluctuates, similar to a traditional savings account or money market account. For savers who prefer a fixed rate, a CD may be a better option, but it would mean giving up access to your funds for the duration of your CD term until your account reaches maturity.

High-yield savings accounts vs. CDs

High-yield savings accounts are similar to traditional savings accounts, with the key difference being that high-yield accounts typically offer a more generous APY. They differ from CDs in that high-yield savings accounts preserve access to your funds, while CDs require that you commit to locking up your funds for a set period of time if you hope to avoid a penalty.

High-yield savings accounts vs. money market accounts

High-yield savings accounts are similar to money market accounts in that you’ll earn interest on your balance and have easy access to your funds. One key difference between the two account types is that you may need to deposit and maintain a certain balance to open a money market account, and in some cases, the higher the balance, the higher your rate may be.

Our methodology

To bring you our top picks for the best high-yield savings accounts, the Fortune Recommends™ team compared 52 online savings accounts from a mix 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 featured 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%): In order 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 most highly rated by our team.

The rates and fee structure of high-yield savings accounts are available for limited time 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.

Savings accounts Checking accounts Certificates of deposit APY Money management Fees and interest

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EDITORIAL DISCLOSURE: The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.