• Mon. May 27th, 2024

The 9 best high-yield savings accounts of October 2023

The 9 best high-yield savings accounts of October 2023

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Compared to regular savings accounts, high-yield savings accounts let you grow your money quicker. In these uncertain economic times, a high-yield savings account could be a good place to store money safely while earning interest.

According to the Federal Deposit Insurance Corporation (FDIC), the typical savings account pays an annual percentage yield (APY) of just 0.37% as of April 2023. Notwithstanding this average, several respectable banks provide rates of 4% or more on high-yield savings accounts at the time of writing. Many of these savings accounts also have customer-friendly features like sophisticated mobile apps, included ATM cards and no monthly maintenance fees.

Whether you’re saving money for a rainy day or a down payment on a home, a high-yield savings account is a good choice. These accounts can also be a good place to store your tax refund if you just filed your taxes and are looking for a place to store the funds.

But it can be hard to figure out which high-yield savings account to open since offerings change frequently and interest rates fluctuate. So, let’s take a look at 9 of the best high-yield savings accounts of October 2023.

You’ll notice a pattern with the list of our top ten best high-yield savings accounts: none of the country’s largest banks made the cut. This is because — at the time of writing — the big-name banks lack competitive rates and tack on hefty fees and minimum deposit requirements.

The banks on our list, on the other hand, entice customers and their deposits by offering high-interest rates and strong customer service. And as you’d expect, the FDIC backs them up for up to $250,000 in deposit insurance per depositor, per bank and per ownership category.

Before we take a closer look at some of the best high-yield savings accounts, note that the APY these accounts charge can fluctuate. These interest rates are current at the time of publishing and we’ll do our best to keep them updated. Regardless, check the bank’s website for the most current APY.

A photo of piggy banks in multiple colors on a multi-colored checkered background

Overview: The Betterment Cash Reserve account is a no-frills, fee-free cash management account that offers a promotional 5.50% APY for new members through the end of the year.

Things to know: What we like about Betterment Cash ReserveThis cash management account offers a high 5.50% APY to new members through the end of the year. This rate takes includes the account’s standard 4.75% APY plus a 0.75% APY new member bonus. Note that new members’ rate will drop by 0.75% APY after Dec. 31, 2023.

  • New members earn 5.50% APY through the end of the year; existing members earn 4.75% APY.
  • You must make a deposit within 14 days of account opening to be eligible for the 0.75% bonus APY.
  • 0.75% APY new member bonus ends Dec. 31, 2023.
  • $10 minimum deposit required to open an account.
  • No monthly fees.

What we like about Betterment Cash ReserveThis cash management account offers a high 5.50% APY to new members through the end of the year. This rate takes includes the account’s standard 4.75% APY plus a 0.75% APY new member bonus. The promotional new member rate is valid through Dec. 31, 2023.

That said, the Betterment Cash Reserve account can be a good option for someone who needs a short-term savings solution or someone who already uses Betterment’s suite of financial products and wants to streamline their finances. There are no monthly fees, but a $10 minimum deposit is required to open an account.

Note that Betterment Cash Reserve is a cash management account, not a traditional high-yield savings account. This means funds are stored in Betterment’s partner banks. Because of this, funds are insured up to $2 million ($4 million for joint accounts) via Betterment’s program banks.

Learn more about and open the Betterment Cash Reserve account.

Two hands holding four $100 US dollar bills

Overview: The UFB High Yield Savings account, which is at the top of our ranking thanks to its high 5.25% APY, is perfect if you want to grow your money while still having easy access to it.

Things to know:

  • Earn up to 5.25% APY.
  • No maintenance or service fees.
  • No minimum deposit requirement.
  • Complimentary ATM card.

What we like about the UFB High Yield Savings account: Not only does this account top the field with an impressive annual percentage yield (APY) of up to 5.25%, but it is also a great choice for those who have animosity towards fees of any type from their savings accounts.

There are no hidden monthly service fees, so your money is easy to access online, and the mobile banking app is reliable. Also, the complimentary ATM card may appeal to users who would rather not deal with external bank transfers when they need cash.

Learn more about and open the UFB High Yield Savings account.

Read our full review of the UFB High Yield Savings account.

American Airlines plane taking off.

Overview: The Bask Bank American Airlines Miles Savings Account is popular for those wanting to earn American AAdvantage miles on their savings. But if you’d rather earn cash, the Bask Bank Interest Savings Account provides an excellent 5.10% APY.

Things to know:

  • Strong 5.10% APY.
  • Live support for customers is available 6 days a week.
  • Option to earn American Airlines miles or interest.
  • Minimum deposit of $0.
  • No minimum balance requirement.
  • No monthly service charges.

What we like about the Bask Bank Interest Savings Account: With an annual percentage yield (APY) of 5.10% at the time of writing, it has one of the best rates for saving money in the country.

If you’re saving American AAdvantage miles for a vacation, you might consider opening the Bask Mileage Savings Account instead. This account earns 2.5 miles per dollar per year on your savings, distributed monthly. Travel website The Points Guy values these miles at 1.77 cents apiece, giving you an effective 4.42% APY. That said, it’s possible to get more value from your miles if you redeem for high-end award flights. Run the numbers and see what works best for your needs.

Thankfully, you don’t have to worry about monthly fees or minimum balances with either of the Bask Bank savings accounts. You’ll only have to pay a fee if you need to send a wire transfer out of your account.

Learn more about and open the Bask Bank Interest Savings Account.

Read our full reviews of Bask Bank’s Interest Savings Account and Mileage Savings Account.

A sign that reads

Overview: Not only does First Foundation Bank provide online banking, but it also has physical branches for customers who prefer brick-and-mortar locations for their bank. Its online savings account pays 5.0% APY at the time of publishing.

Things to know:

  • Competitive 5.0% APY.
  • 30+ branches across California, Hawaii, Nevada, Texas and Florida.
  • No geographical restrictions to opening an account.
  • No maintenance fees.
  • ATM card available with up to $20 in ATM fees per visit, with no monthly limit.

What we like about the First Foundation Bank Online Savings account: The First Foundation Bank Online Savings Account is an excellent option if you want to maintain a balance of $1,000 or more. This is one of the most competitive savings accounts due to its simplicity and elevated annual percentage yield (APY) of 5.0%.

It’s also one of the few banks that provides ATM cards and reimburses customers for up to $20 per transaction, with no monthly reimbursement limit. In addition, people living in California, Nevada, Florida, and Hawaii may access their funds at any of the bank’s 30 physical branch locations.

Learn more about and open the First Foundation Bank Online Savings account.

Read our full review of the First Foundation Bank Online Savings account.

A photo of various $100 US Dollar bills on a table

Overview: The Laurel Road High Yield Savings account offers one of the highest yields on the market at 5.0% APY. Plus, the bank offers checking accounts and other financial products if you want to keep your cash in one place.

  • Earn up to 5.0% APY on your funds.
  • No minimum deposit requirement.
  • No monthly maintenance fee.

What we like about the Laurel Road High Yield Savings account: This high yield savings account has one a great yield at 5.0% APY. Like many accounts on this list, it has no fees or minimum balance requirement, which is great for those who want an account they want to keep for the long-term.

Laurel Road doesn’t have any physical branches, but it does have a solid mobile app you can use to deposit funds. Likewise, it offers a variety of other financial products like a rewards checking account and even a credit card that offers cash back rewards. This can be helpful if you want to keep your finances in one place.

Learn more about and open the Laurel Road High Yield Savings account.

Read our full review of the Laurel Road High Yield Savings account.

A sign for a CIBC bank branch

Overview: In terms of high-yield savings accounts, the CIBC Agility Online Savings Account offers an attractive 4.76% APY interest rate and may be an ideal choice if you have at least $1,000 to deposit.

Things to know:

  • High-interest rate (4.76% APY).
  • No monthly maintenance fees.
  • $1,000 minimum opening deposit.

What we like about the CIBC Agility Online Savings Account: CIBC Bank is a full-service bank with roots in Canada that provides US consumers with a desirable savings account, among other financial services products.

The CIBC Agility Savings Account is a savings account that can only be opened online. There are no monthly fees for keeping the account open. To open your account, you must have a $1,000 minimum deposit. But once the account is set up, it has no minimum balance.

Learn more about and open the CIBC Agility Online Savings Account.

Person depositing a check with their smartphone.

Overview: The CIT Bank Savings Connect account is a great choice for people who want an online-only savings account with prompt customer service.

Things to know:

  • An attractive 4.65% APY.
  • $100 initial deposit.
  • Mobile check deposits.

What we like about CIT Bank Savings Connect: The mobile banking app for CIT Bank lets you do basic things like check your transaction history and move money between your CIT Bank accounts. But if you need to talk to a customer service agent, the bank is known for having helpful agents available 24/7 via live chat on its website and through its app. Better yet, you can talk to a real person live from 9 a.m. to 9 p.m. ET on weekdays and 10 a.m. to 6 p.m. ET on Saturdays.

Note that CIT has other savings accounts with varying interest rates, fees and features. For example, its Platinum Savings account has a higher 5.05% APY. However, you must maintain a balance of $5,000 or more to get this rate. Otherwise, your APY drops to 0.25%.

Read our full review of the CIT Bank Savings Connect account.

Learn more about and open the CIT Bank Savings Connect account.

Person using a bright red ATM.

Overview: The LendingClub High-Yield Savings Account combines a high-interest rate with no monthly fees and a modest opening deposit.

Things to know:

  • Mobile check deposits.
  • High 4.50% APY.
  • No monthly fees.
  • ATM card available with fee reimbursements.

What we like about the LendingClub High-Yield Savings AccountThe APY on the LendingClub High-Yield Savings Account is 4.50%, which is higher than the national average and one of the highest we’ve seen. You won’t be charged any monthly service fees, and customers can make free internal and external transfers online and through mobile banking.

Customers who want an ATM card can request one without cost, and LendingClub will refund them for ATM costs at other banks without restriction.

There are no physical LendingClub branches, but customers can deposit and withdraw money from their accounts using their phones, certain ATMs or via online banking.

Learn more about and open the LendingClub High-Yield Savings Account.

SoFi Checking and Savings

A hand putting a debit card into an ATM

Overview: The SoFi Checking and Savings account keeps your money in one place with two accounts under one roof. Plus, new account holders can earn a $250 bonus by meeting direct deposit requirements.

Things to know:

  • Keeps your checking and savings account in one place.
  • 4.60% APY on savings with qualifying direct deposits.
  • Earn up to a $250 bonus with qualifying direct deposits.
  • Intuitive mobile app.
  • No monthly fees.

What we like about SoFi Checking and Savings: This is SoFi’s all-in-one banking solution, so you can keep your checking account and high-yield savings in one place. The 4.60% APY on savings balances isn’t industry-leading, but it’s better than what you’ll get at most major banks.

Just know you need to keep direct deposits flowing to your SoFi accounts to maintain this high APY. Otherwise, you’ll drop to a 1.20% APY on your savings account. Funds in the checking account earn 0.50% APY.

Plus, the account is currently offering a $250 bonus, so you can your kickstart your savings goals. You can earn this bonus by receiving $5,000 or more in direct deposits to your SoFi Checking and Savings Account within 25 days of account opening. You’ll earn a $50 bonus if you receive between $1,000 and $4,999.99 in direct deposits in the same timeframe.

Read our full review of the SoFi Checking and Savings account.

Learn more about and open the SoFi Checking And Savings account.

Looking for a credit card that earns travel rewards? Check out CNN Underscored’s list of the best travel credit cards currently available.

Get all the latest personal finance deals, news, and advice at CNN Underscored Money.

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