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Earn more than 3% interest on your money: The 8 best high-yield savings accounts of December 2022

Select reviewed dozens of high-yield savings accounts. Here are our top accounts with high APY.

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Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. Select will update as changes are made public.

When it comes to building an emergency fund or saving up for a large expense, such as a down payment on a home, putting your money in a high-yield savings account can help you reach your goals quicker.

Unlike traditional savings accounts, high-yield savings accounts reward you with a higher interest rate and your money grows even faster thanks to compound interest — which lets you earn interest on interest. The higher your annual percentage yield (APY), the faster your money grows and you get a better return than you would with a traditional savings account.

The national average APY on savings accounts is just 0.21%, according to the Federal Deposit Insurance Corporation (FDIC). That's over 18 times less than what the highest-yield savings accounts offer. And as the Fed continues to raise interest rates, banks are responding by paying out higher annual percentage yields, or APYs, to their customers.

To determine which high-yield savings accounts are the best overall, Select analyzed and compared dozens of savings accounts offered by online and brick-and-mortar banks, including large credit unions. We found that although most online banks don't have physical branch locations, they typically offer higher APYs, lower fees and overall better benefits than national brick-and-mortar banks.

When rating our top eight, we considered each account's APY, its ease of use, account accessibility, monthly fees and minimum balance requirements.

The savings accounts we selected offer an above-average APY to all customers (no matter your balance), are FDIC-insured, have zero monthly maintenance fees and low (or no) minimum balance requirements (see our methodology for more information on how we choose the best high-yield savings accounts).

Here are Select's picks for the top high-yield savings accounts.

Best high-yield savings accounts

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Best overall

LendingClub High-Yield Savings

LendingClub Bank, N.A., Member FDIC
  • Annual Percentage Yield (APY)

    3.25%

  • Minimum balance

    No minimum balance requirement after $100.00 to open the account

  • Monthly fee

    None

  • Maximum transactions

    None

  • Excessive transactions fee

    None

  • Overdraft fees

    N/A

  • Offer checking account?

    Yes

  • Offer ATM card?

    Yes

See our methodology, terms apply.

Pros

  • Strong APY
  • No minimum balance required
  • No monthly fees
  • Free ATM card and no ATM fees

Cons

  • $100 minimum opening deposit required, though there's no minimum balance after that
  • No physical branch locations

Who's this for? We rated the LendingClub High-Yield Savings as our best overall pick for a few reasons. For starters, it offers one of the highest returns on your money, with a 3.25% APY. Further, it charges no monthly maintenance fee and doesn't have a minimum balance requirement. You just need an initial $100 deposit to open the account.

Unlike many savings accounts, LendingClub provides customers with a free ATM card and never charges any ATM fees. This makes it easy to access your savings account and withdraw money whenever you want. You can also use your funds to pay bills, send money to friends and family and make internal and external transfers.

To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.

Best for no fees

Marcus by Goldman Sachs High Yield Online Savings

Goldman Sachs Bank USA is a Member FDIC.
  • Annual Percentage Yield (APY)

    3.00%

  • Minimum balance

    None to open; $1 to earn interest

  • Monthly fee

    None

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

    None

  • Overdraft fees

    N/A

  • Offer checking account?

    No

  • Offer ATM card?

    No

See our methodology, terms apply.

Pros

  • No minimum balance (just $1 to earn interest)
  • No monthly fees
  • Up to 6 free withdrawals or transfers per statement cycle*
  • Easy-to-use mobile banking app
  • Offers no-fee personal loans

Cons

  • No option to add a checking account
  • No ATM access
  • You can't deposit a check via the mobile app

Who's this for? As the consumer banking arm of Goldman Sachs, Marcus offers a few financial products including the Marcus by Goldman Sachs High Yield Online Savings. Marcus offers no fees whatsoever and easy mobile access. It's the most straightforward savings account to use when all you want to do is grow your money with zero conditions attached.

The account offers 3.00% APY with no monthly fees and no minimum deposits. Users start earning interest with a minimum of $1 in their account. While there are no associated fees, the bank's site says it may close your account if you don't maintain a positive balance for 60 days.

The Marcus account also stands out thanks to its mobile banking app, which is simple to use and allows you to set up recurring deposits, track your savings goals and see how much interest you've earned this year. The bank's U.S.-based contact center is open 24/7 for live customer support over the phone or through online chat.

Account holders can withdraw money from their Marcus savings account online and by phone through ACH or by free wire transfer to a linked account at another bank. You can also request a withdrawal by check mailed to you.

To add money to your account, you can transfer funds, make direct deposit payments, send a check or make a wire transfer. There is no option to deposit checks via the mobile app, which some of the accounts on this list offer.

Marcus doesn't charge a fee if you link other bank accounts for incoming and outgoing transfers, but keep in mind that your other bank might. As required by law, Marcus savings account holders can make up to six free withdrawals or transfers per statement cycle.

While there are no ATM cards or checking account options available through Marcus, the bank does offer a variety of no-fee personal loans as well.

Best for checking/savings combo

Ally Bank Online Savings Account

Ally Bank is a Member FDIC.
  • Annual Percentage Yield (APY)

    2.75%

  • Minimum balance

    None

  • Monthly fee

    No monthly maintenance fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

    $10 per transaction

  • Overdraft fees

    $25

  • Offer checking account?

    Yes

  • Offer ATM card?

    Yes, if have an Ally checking account

See our methodology, terms apply.

Pros

  • Strong annual percentage yield on all balance tiers
  • No minimum balance
  • No monthly maintenance fee
  • Up to 6 free withdrawals or transfers per statement cycle*
  • Option to add a checking account
  • ATM access if you have a checking account

Cons

  • $10 fee per transaction if you make more than 6 in a statement cycle
  • $25 overdraft fee

Who's this for? Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Online Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally checking account.

In addition to earning a solid 2.75% APY, no minimum account balance and no monthly maintenance fees, with an Ally checking and savings account, you also have access to over 43,000 free Allpoint® ATMs, making it easy to withdraw cash when you need to. If you only have an online savings account, you won't have access to a debit card.

If you use an out-of-network ATM, Ally doesn't charge a fee and if the ATM provider does, Ally will reimburse those fees up to $10 per month.

Not all online banks also offer a checking account option. Saving your money with a bank that doesn't offer a checking account means you would have to transfer your money between banks, which could take a couple of days. By law, account holders with Ally can withdraw or transfer money online up to six times per month with no penalty. After, Ally charges $10 per transfer. You can also call the bank to request a mailed check, which doesn't count as one of your six transactions.

You can't deposit cash in your Ally savings account, which is standard for many online banks, but you can deposit checks remotely with eCheck Deposit on the mobile app. Account holders can organize their saving goals by creating up to 10 different "buckets" within the same savings account. For example, you can create a designated fund for a "Future Vacation" and another for "Emergency Savings."

Ally is also a consumer favorite because of its easy-to-use mobile app and 24/7 live customer service that is available over the phone, through online chat or on the Ally mobile app. 

Best for easy access to your cash

Synchrony Bank High Yield Savings

Synchrony Bank is a Member FDIC.
  • Annual Percentage Yield (APY)

    3.00%

  • Minimum balance

    None

  • Monthly fee

    None

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

    None, but may result in account closure

  • Overdraft fees

    N/A

  • Offer checking account?

    No

  • Offer ATM card?

    Yes

See our methodology, terms apply.

Pros

  • Strong APY
  • No minimum balance
  • No monthly fees
  • Up to 6 free withdrawals or transfers per statement cycle*
  • Easy ATM access
  • 1 physical branch (in Bridgewater, New Jersey)

Cons

  • Account could close if you make more than 6 transactions in a statement cycle
  • No option to add a checking account

Who's this for? Withdrawing money is quick and easy when you have a Synchrony Bank High Yield Savings account. There is no minimum balance requirement, no monthly fees and a strong 3.00% APY. But what makes this account stand out is its convenient withdrawal options.

Synchrony Bank offers an optional ATM card to its savings account holders. You can access your money by ATM, wire transfer (up to three free per statement cycle) or through an electronic transfer to or from accounts you have at other banks.

Though you are limited to six free withdrawals or transfers per statement cycle, Synchrony Bank allows you to conduct unlimited transactions at an ATM. The bank won't charge an ATM fee, but the ATM provider may. For these charges, Synchrony Bank refunds ATM fees in the U.S. up to $5 per statement cycle.

Still, you should be wary of how much you withdraw from an ATM because of the fees, even with a $5 refund, can really add up. According to Bankrate, ATM operators charge customers an average fee of $3.09. Just going to the ATM twice in one month would already put you over the refundable amount.

To deposit money into your savings account at Synchrony Bank, you can make an electronic transfer from an external bank account that you've linked, do a direct deposit, make a wire transfer, mail a check or use the bank's mobile app to deposit a check.

Synchrony Bank's customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go. Additional customer perks include complimentary identity theft assistance, travel discounts and free webinars.

Best for earning high APY

UFB High Rate Savings

UFB High Rate Savings is a Member FDIC.
  • Annual Percentage Yield (APY)

    3.91% APY

  • Minimum balance

    None

  • Monthly fee

    None

  • Maximum transactions

    None

  • Excessive transactions fee

    None

  • Overdraft fees

    N/A

  • Offer checking account?

    No

  • Offer ATM card?

    Yes

See our methodology, terms apply.

Pros

  • Strong APY
  • No minimum balance
  • No monthly fees

Cons

  • No option to add a checking account
  • No physical branch locations

Who's this for? The UFB High Rate Savings account is for anyone who's focused on maximizing their returns. With earning a 3.91% APY, it offers one of the highest interest rates currently available.

The account charges no monthly fees, allows unlimited transfers and has no minimum deposits. Whether you deposit $1 or $1,000, you'll earn the same, high return.

As with the other banks on this list, UFB Direct is an online-only bank, and it is a division of Axos Bank. Although there are no physical branches and you can't add a checking account, customers do get a free ATM card.

Best for earning airline miles

Bask Bank Interest Savings Account

Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.
  • Annual Percentage Yield (APY)

    3.60%

  • Minimum balance

    None

  • Monthly fee

    None

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Overdraft fees

    N/A

  • Offer checking account?

    No

  • Offer ATM card?

    No

See our methodology, terms apply.

Pros

  • Strong APY
  • No minimum balance 
  • No monthly fees
  • Ability to earn American Airlines AAdvantage miles instead

Cons

  • No option to add a checking account
  • No ATM access

Who's this for? If you want to maximize your interest-earning potential, the Bask Bank Interest Savings Account may be for you. It offers a very respectable 3.60% APY to all savings account holders.

Here's the kicker: If you're a frequent traveler, you can opt to earn American Airlines AAvantage miles back instead. With the mileage savings account, you'll earn 1.5 miles for every $1 saved annually. You can use these miles for flights on American Airlines or any of its 20+ partner airlines. So, you can effectively fund your next vacation without any spending.

The accounts offer no monthly fees and no minimum deposits. Just note that the bank may close your account if it remains unfunded for 60 days. Bask Bank is a division of Texas Capital Bank, but operates completely online.

Best for welcome bonus

SoFi Checking and Savings

Information about Sofi Checking and Savings has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication.
  • Monthly maintenance fee

    $0

  • Minimum deposit to open

    $0

  • Minimum balance

    None

  • Annual Percentage Yield (APY)

    Members with direct deposit earn 3.00% APY on savings and Vaults balances, and 2.50% APY on their checking balances. Members without direct deposit will earn 1.20% APY.

  • Free ATM network

    55,000+ fee-free ATMs within the Allpoint® Network

  • ATM fee reimbursement

    None

  • Overdraft fee

    No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it

  • Mobile check deposit

    Yes

See our methodology, terms apply.

Pros

  • No minimum deposit to open an account
  • 1.80% APY with direct deposit
  • 2-day-early-paycheck automatically when you set up direct deposit
  • Save your change automatically with Roundups and set savings goals with Vaults
  • Get up to 15% cash back at local establishments
  • No foreign transaction fees

Cons

  • No reimbursement for out-of-network ATM fees
  • Not a standalone checking or savings account

Who's this for? The SoFi Checkings and Savings stands out for offering a valuable welcome bonus after you setup and receive direct deposit payments. You can earn anywhere from $50 to $300, depending on the amounts of your direct deposits in a 30-day period.

The account also gives you a solid return. The only caveat is that you must opt-in to direct deposit in order to get the maximum interest, which is 3.00% APY. Without direct deposit, it lowers to 1.20% APY.

In addition, the account comes with a debit card that has fee-free ATM access through the Allpoint® Network, which has over 55,000 locations across the country. And while paying with a debit card can sometimes lack rewards, you can get up to 15% cash back when you use your card at specific merchants.

And if you're looking to fully immerse yourself in the fintech/online bank space, SoFi offers a variety of financial products, including student loans, personal loans, mortgage refinancing, auto loans and more.

Best if you want extra help saving

Varo Savings Account

Bank Account Services are provided by Varo Bank, N.A., Member FDIC.
  • Annual Percentage Yield (APY)

    Begin earning 2.00% and qualify to earn 5.00% if you meet requirements

  • Minimum balance

    None; $0.01 to earn savings interest

  • Monthly fee

    None

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

    None

  • Overdraft fees

    None

  • Offer checking account?

    Yes

  • Offer ATM card?

    Yes, if have a Varo Bank Account

See our methodology, terms apply.

Pros

  • High APY and option to earn even higher
  • No minimum balance
  • No monthly fees
  • Up to 6 free withdrawals or transfers per statement cycle*
  • ATM access at 55,000 fee-free AllPoint® ATMs with a Varo Bank Account
  • Offers 2 programs to help automate your savings

Cons

  • Cash deposits are only available through third-party services, which charge a fee

Who's this for? Varo Bank is a San Francisco-based online bank that was founded in 2015. It is an all-mobile national bank, so for those looking to save and don't mind banking completely over the phone or online, the Varo Savings Account makes a good option.

Varo offers a 2.00% APY to all savings account holders, as well as a checking account option. Neither accounts require minimum balances to open and neither charges monthly maintenance fees. 

Varo stands out because of its uniquely tiered APY program that encourages you to save more. While you can take advantage of a 2.00% APY regardless of your account balance, you can earn up to 5.00% APY if you meet certain monthly requirements: Account holders must make a minimum of five purchases using their Varo Visa® Debit Card, have direct deposits totaling $1,000 or more each month and keep a savings account balance no higher than $5,000 (there is no minimum balance) all in the same month.

For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings.

Varo also offers an ATM network with no fees (as well as no penalty for overdrafts up to $50). For any cash deposits, note that Varo only makes these available through third-party services, which may charge a fee.

FAQs

How do online savings accounts work?

While online savings accounts offer some of the highest APYs, it's also more tedious to access your money than banking at a brick-and-mortar institution, since you'll usually have to transfer to a checking account to use your money. This is arguably a good thing if you're trying to grow your emergency savings, as you won't have easy access to withdraw from the account.

While it may seem nerve-wracking to have limited access to your savings, one of the big reasons to put your emergency fund into a high-yield account is to watch it grow. The higher your account balance is, the more money you will earn in compound interest over time.

Can you lose money in a high-yield savings account?

There's a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that's no different than a traditional savings account. So, opening a high-yield savings account is definitely worth considering.

Do you pay taxes on a high-yield savings account?

Interest accrued on a high-yield savings account is taxed as ordinary income. You must report the interest on your tax return for any account that earned more than $10 in one year.

Can you withdraw money from a high-yield savings account?

By law, consumers can withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, some accounts let you make more withdrawals for no additional fee.

What are the cons of a high-yield savings account?

The biggest con of a high-yield savings account is that you're usually limited to a certain number of withdrawals each month before you're hit with a fee — just like a traditional savings account. Further, interest rates can fluctuate over time, but that applies to all types of savings accounts. Withdrawing money may also be a slightly slower process as only a few high-yield savings accounts offer ATM cards. Most of the online high-yield savings account banks don't have physical locations.

Common high-yield terms you should know

  • Annual Percentage Yield (APY): The amount of interest an account earns in a year.
  • ACH transfer: When you want to make small and frequent payments electronically (direct deposit, automated bill payments, etc.); typically always free but usually takes at least one business day to complete the transfer.
  • Wire transfer: When you want to move funds from one bank account to another and have the money be available for use in the same business day; banks usually charge a fee.
  • Mobile deposit: Instead of going to the bank to deposit a check, you can use your mobile banking app to scan a photo of the check and have the funds immediately deposited into your account. It can sometimes take a day or two for the funds to be accessible.
  • ATM networks: ATMs can either be in-service or out-of-network, depending on which bank you have. When you make a transaction at an ATM that is outside your bank's network, then a fee will most likely be applied by both the ATM operator and your bank.

Our methodology

To determine which high-yield savings accounts offer the best return on your money, Select analyzed dozens of U.S. savings accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our ranking by only considering those savings accounts that offer an above-average APY, no monthly maintenance fees and low (or no) minimum balance requirements.

While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each savings account on a range of features, including ease of use and account accessibility, as well as factors such as insurance policies and customer reviews when available. We also considered users' deposit options and each account's compound frequency.

All of the accounts included on this list are FDIC-insured up to $250,000. Note that the rates and fee structures for high-yield savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your high-yield savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can't transfer the money you already had in an account at that bank.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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