The Best Savings Accounts of September 2023
The Best Savings Accounts of September 2023
If you’re keeping your savings in an account earning less than 1% interest, you’re missing out on an incredible opportunity to earn up to 5% APY on your money.
After years of almost 0% interest being paid on savings accounts, interest rates are up. While the national average rate is still below .5%, the best banks offer much higher rates.
We’ve analyzed dozens of banks and credit unions to find the best savings accounts available. The accounts featured here offer top-tier interest rates and don’t sneak in extra fees.
Which Banks Have the Best Savings Account Rates?
Savings rates are higher than they’ve been in 15 years, but if you’re using a traditional, big-name bank, you’re missing out on these rates.
Here are our top picks for those who want to earn the highest interest on their savings.
Best Savings Accounts At a Glance
Best Savings Account Reviews
When you compare savings accounts, the two most important factors are the interest rate and the annual percentage yield (APY).
The interest rate is the percentage of your deposited funds that the bank will pay you over a year.
The APY is the interest rate as well as any compound interest earned. Savings accounts with higher APYs will grow faster than those with lower APYs.
Rates are subject to change, but the best banks for savings accounts tend to offer consistently higher rates on savings accounts.
Earn the Best Savings Account Interest Rates
Most bank customers can easily earn more interest on their savings just by opening an account at one of the banks with consistently high rates.
The following select banks are a good place to start because you can earn up to five times more interest with a high-yield savings account from one of these banks than with the average savings account.
American Express®, Member FDIC, High Yield Savings Account
Most people know American Express for its personal and business credit cards, but it also has the American Express® High Yield Savings from American Express National Bank, which offers savers a dependable solid return.
Type of account: Online high-yield savings account
About the bank
American Express National Bank (Member FDIC) was established in 1989 and has one domestic branch at its headquarters in Salt Lake City, Utah.
Key features
The American Express High-Yield Savings Account serves its savings account customers with a high interest rate and no fees.
The high-yield savings account can be linked to up to three external accounts to facilitate transfers in and out of your savings.
Pros
- Competitive annual percentage yield on all balances, no tiered rates
- No monthly maintenance or minimum balance fees
- Link up to three external accounts to transfer funds
Cons
- No ATM or debit card to withdraw cash
Read Our American Express High Yield Savings Account Review
Barclays Savings Account
Barclays Bank is another large bank that keeps its online high-interest savings account in the competitive range. It offers the Barclays Online Savings Account, which maintains a low fee structure in addition to its higher interest rates.
Type of account: Online high-yield savings account
About the bank
Barclays Bank is headquartered in Wilmington, Delaware, with roots back to London that go back more than 300 years. It was established in 2001 in the U.S.
Key features
The Barclays Online Savings Account consistently offers one of the most competitive rates combined with no fees, and it’s also easy to open and manage your account.
Adding to your high-interest savings account is easy to do with online mobile apps and mobile deposits.
Pros
- Competitive APY on balances
- No monthly maintenance or minimum balance fees
- Mobile deposit and convenient mobile apps
Cons
- No ATM access is available
Read Our Barclays Online Savings Account Review
CIT Savings Connect
CIT Savings Connect is a good choice for consumers who are comfortable banking online and want to do their banking in one place.
Type of Account: CIT Savings Connect
About the bank
CIT Bank was founded in 2000 in Pasadena, California. It offers commercial and personal banking. It is a division of First Citizens Bank.
Key features
CIT offers a full range of banking products to go along with its savings accounts, including money market accounts and CDs. CIT has raised APYs on its base and tiered savings, which puts CIT savings account rates much higher than the national average.
Pros
- Interest rate increases with qualifying deposits
- Low minimum balance
Cons
- No ATM deposit availability
- Online banking only
Read Our CIT Savings Connect Review
SoFi Savings & Checking
SoFi offers an entire package of banking products and services to consumers.
About the bank
SoFi Bank was started by Stanford business students in 2011 as Social Finance. It was started as an alumni-funded lending service. It soon started offering other types of loans and now offers a wide range of banking products and services.
Key features
SoFi brings a holistic approach to banking. Customers have access to loans, mortgages, credit cards, insurance, and investing, along with deposit products such as savings and checking.
The SoFi high-yield savings account consistently offers a highly competitive APY.
Pros
- Interest rate increases with qualifying deposits
- Low minimum balance
Cons
- No ATM deposit availability
- Online banking only
Read Our SoFi Savings Account Review
Synchrony High-Yield Savings Account
Synchrony Bank USA offers another option for savers with its competitive interest rates.
The Synchrony High-Yield Savings Account also keeps fees low, even refunding up to $5 in domestic ATM fees every month.
Type of account: Online high-yield savings account
About the bank
Synchrony Bank is based out of Draper, Utah, and has one full-service, brick-and-mortar branch at that location. It was established in 1988.
Key features
The Synchrony High-Yield Savings Account offers all of the common best features of those listed here – a competitive interest rate, no fees, and it’s easy to open and manage your high-interest savings account.
One feature that isn’t common among these banks is you can get an ATM card that charges no ATM fees, although fees may be charged by the bank that owns the ATM machine you use.
But even then, Synchrony refunds up to $5 in ATM fees every statement cycle for eligible Synchrony savers.
Pros
- Competitive APY on balances
- No monthly maintenance or minimum balance fees
- ATM access to your savings
Cons
- Checking accounts are not available
More about Synchrony High-Yield Savings Account Review
Laurel Road Savings
Laurel Road is an online banking platform and part of KeyBank dedicated to offering personalized solutions that bolster the financial wellness of people working in the healthcare and business sectors.
Along with a high-yield savings account, its services include student loan refinancing, mortgages, personal loans, and a student loan cashback credit card.
Type of account: Online high-yield savings account
About the bank
Starting in 2013, Laurel Road has assisted many people in consolidating and refinancing their private student loans. In 2019, Laurel Road joined forces with KeyBank, a major financial services institution under FDIC membership, and now offers other financial services, including savings accounts.
Key features
The Laurel Road high-yield savings account pays one of the highest APYs out there. Interest is compounded daily and paid monthly.
The account comes with no monthly fees and no minimum initial deposit. Start saving and earning interest right away on your money.
Pros
- Interest is compounded daily and paid monthly
- No monthly maintenance or minimum balance fees
- Other banking services, including mortgages, offered
Cons
- No ATM or debit card to withdraw cash
- Live customer service is not available on the weekends
Bread Savings™
Bread™ offers interest rates higher than the national average on its savings accounts and is good for people who want a simple savings account with a great rate.
Type of account: Bread Savings™
About the bank
Bread™ was formerly Comenity Bank, which was founded in Utah in 1989.
Key features
Bread makes saving money easy. Along with a savings account paying higher than average rates, customers can also open CD accounts.
Pros
- Easy online and app use
- No monthly fees
- Low minimum opening balance
Cons
- Limited availability of banking products
- ATM cards are not offered
Read Our Bread Savings™ Account Review
Marcus Goldman Sachs High-Yield Savings Account
Goldman Sachs Bank USA offers the Marcus High-Yield Savings Account, which is consistently among the best of the online high-interest savings account offerings.
Type of account: Online high-yield savings account
About the bank
Goldman Sachs Bank USA was established in 1990. The FDIC reports six branches for the bank, but only three are full-service, brick-and-mortar branches.
Key features
The Marcus High-Yield Savings Account features a competitive interest rate and no fees, and it’s easy to open and manage your account.
Electronic funds transfer and direct deposit are available too.
Read Our Marcus High-Yield Savings Account Review
Citi Accelerate Savings Account
Citi has two different savings accounts tailored to a variety of consumers, the Citi Savings and the Citi Accelerate Savings Account.
Type of Account: Citi Accelerate Savings
About the bank
Citi is the consumer banking division of Citigroup. It was founded in New York City in 1812 as the City Bank of New York.
Key features
Citi has a strong banking network in the U.S., with branches cropping up in many communities.
Pros
- $1 minimum balance to earn interest
- Easy to transfer between Citi accounts
- Access to branches and free ATMs
Cons
- Interest rates can be lower compared to online banks
- Monthly fee
Read Our Citi Accelerate Savings Account Review
UFB Direct Savings Account
If you’ve got at least $10,000 to deposit, UFB Direct offers a high-interest savings account that could keep you quite happy over the long haul.
But until you reach that threshold, it’s best to look at other options.
About the bank
UFB Direct is a division of Axos Bank, which was founded in 2000 and is located in San Diego, California. It is FDIC-insured.
Key features
Even though rates have dropped significantly, the UFB Direct Savings Account offered the highest APY in America’s Best Rates survey over the entire quarter.
It offers the convenience of online banking, including access wherever you can go online and 24/7 service.
Pros
- Competitive APY on balances of $10,000 or more
- No monthly maintenance or service fees
- Complimentary ATM card
Cons
- Competitive APY on balances of $10,000 or more
- ATM fees from other banks may apply
More about UFB Direct Savings Account Review
Are Savings Accounts Worth It?
Yes, they are. High-interest savings accounts are a great place to park your emergency fund, which is money you can access fairly quickly and easily.
You don’t want to put your emergency fund in an investment because with the daily fluctuations of the market, even in conservative investments, you sometimes must wait to recoup your money when there’s a dip in the market.
A high-interest savings account is also a good place to stash money you’ll need within the next few years for a down payment on a house, a new car, or even a new addition to the family.
Even if not used for an emergency, if it’s money you’ll need within the next five years or so, a savings account is useful.
If you have a hard time saving money, a high-yield savings account separate from your other accounts could help.
An online high-interest savings account can still give you fast and easy access to your money, but you may not be as tempted to spend it.
Here are three reasons why high-interest savings accounts are worth it:
- You can think of a savings account as a safe for your cash.
- A high-yield savings account will earn you money with your money, something you typically won’t see with a checking account.
- Savings accounts are usually free or very low cost. Fees are waived in many instances, and it doesn’t take a lot of money to open one.
Taking Advantage of Savings Account Trends
In the ever-evolving landscape of personal finance, harnessing the power of savings account trends means earning real money on your money.
These dynamic shifts reflect changing economic conditions and offer account holders innovative avenues to optimize their financial strategies like never before.
Trend No. 1: The gap between the average rate and the highest rates widens
A clear trend that MoneyRates has identified is a large gap between the average savings account rate and the rates offered by the best banks for savings accounts.
That gap varies, but it has been as much as 4% in recent months.
This wide gap between the best and average rates means there is plenty of room for most savings account customers to improve their interest rates by putting their money in a high-interest savings account since most savers earn something closer to the average than to the top rate.
If you’re among those whose savings earn next to nothing, this means you could actually raise your rate while most people earn less.
All you have to do is find a high-interest savings account and transfer your funds. It’s one of the simplest ways you can make more money this year.
Trend No. 2: The online-banking trend pays
You can take advantage of another savings account trend by switching from a traditional bank to an online bank.
A good place to find high-interest savings accounts is with online accounts.
Throughout the entire history of the America’s Best Rates study, online savings accounts have earned higher interest rates than traditional, branch-based accounts.
As of the most recent study, online accounts were earning 17 times more than branch-based accounts.
Trend No. 3: Consistency means finding a good bank and sticking with it
While savings account rates change all the time, the list of banks with the highest rates stays remarkably consistent.
This consistency means that shopping for rates doesn’t mean changing banks constantly.
If you switch to one of the high-yield savings accounts, chances are you’ll be near the top for some time to come.
Are Online Savings Accounts a Good Option?
Savings accounts are ideally suited to online banking. Online checking accounts can also be convenient, but given the frequent access to your money you are likely to want with a checking account, you are more likely to need to access your account via a branch or an ATM, which may not be available in your area if your bank is based online.
In contrast, savings accounts generally require less frequent access, and online savings accounts can give you the tools to remain more up-to-date on your finances than if you had to wait for paper statements from a traditional account.
Because of the cost savings that online savings accounts represent to banks, you may find that these accounts offer the most competitive interest rates. That, more than in-person access, is really the key feature of a savings account.
There are some excellent online savings accounts available from banks that do business primarily via the Internet, but more and more traditional banks are also now offering extensive online capabilities.
The bottom line is you should include both Internet banks and traditional banks in your comparison of savings accounts, and this will give you the best chance of finding the best interest rates. Also, broaden out your search to include money market accounts since these are generally very similar in character to savings accounts.
With any form of online banking, remember to use common sense security procedures. Keep sensitive information like account numbers closely guarded, and remember that it is probably much more secure to access your account from home than from a public Internet access point like a Wi-Fi hotspot.
Will You Get a Higher Savings APY at an Online Bank?
If you are concerned with finding the best rates on savings accounts and money market accounts, the answer may well be “yes.”
When it comes to savings accounts or money market accounts, as opposed to a more transactions-oriented checking account or a more judgment-based lending relationship, the notion of old-fashioned personal service might not be as relevant anyway. After all, the idea is to put money in these accounts and largely leave it alone for a while.
So, taking personal service out of the equation to a large degree, the question with online savings accounts and money market accounts is whether they deliver in terms of higher rates. In most cases, the answer seems to be yes.
What to Consider Before Opening a Savings Account
You might find a high-yield savings account either online or at your local bank branch.
Naturally, the idea of a high-interest savings account sounds good, but here are four things you should check on before you open one:
The legitimacy of the financial institution
Is your bank or credit union well-established, and does it have a great reputation for customer service?
The extent of FDIC insurance coverage
Make sure the institution is insured by the FDIC. If you qualify for a high-yield savings account for making a large deposit, make sure the amount does not put you over the FDIC insurance limit, which is currently $250,000 per depositor per institution.
Restrictions on access to your money
A high-interest savings account may limit how often you can access your money. If you can live with those limitations, take advantage of that strong yield.
But if not, look for a savings account that offers looser restrictions.
Should you get an ATM card?
Some accounts offer the option of an ATM card, including online savings accounts. This may sound like a nice perk, but before you opt for one, ask yourself a couple of questions:
Would easier access result in more spending?
If this account is for savings, will having easier access to your money hurt your savings habits?
Are you sacrificing a higher interest rate for the ATM card?
If so, you might be better off with a conventional checking account for your short-term funds while finding a high-interest savings account or money market account for your long-term savings.
3 Savings Account Options and Your Cash Availability
It is important to figure out precisely what you mean when you say you want to keep the money liquid. Is the liquidity need a short-term certainty or just a possibility that could occur sometime in the next few years?
Will your liquidity need to apply to all $40,000 or just a portion of it?
Depending on your answers, here are some options:
1. Savings account or money market account
If you need full liquidity at any time, a savings account or money market account with FDIC insurance coverage is the most appropriate option.
These allow immediate access without penalty, do not fluctuate in value, and offer the security of FDIC insurance limits of up to $250,000 per deposit per covered institution for deposits.
2. A CD with a moderate early withdrawal penalty
The trade-off with certificates of deposit is that they typically offer higher interest rates than savings or money market accounts in exchange for locking your money up for a specified period of time.
If your liquidity need is at least several months in the future and/or is only a slight possibility rather than a high probability, the extra yield you can earn on a CD might be worth risking the early withdrawal penalty, especially if you can find a CD offering a relatively mild penalty.
3. A CD ladder
If your need for liquidity applies to only a portion of your $40,000, you might consider investing just that portion in a savings or money market account while putting the remainder in long-term CDs.
If you anticipate a series of liquidity needs in the months or years to come, a corresponding series of CD terms with a CD ladder might give you the best combination of yield and liquidity.
How We Chose the Best High-Interest Savings Accounts and Banks
MoneyRates regularly updates an extensive list of savings account rates.
The challenge is that savings account rates can also change at any time, and there is no guarantee that the best banks for savings accounts with the best rate on the day you sign up for a bank account will continue to have the best rate in the months ahead.
However, a series of interest-rate studies by MoneyRates has shown over the years that most of the banks near the top in savings account rates tend to stay there quarter after quarter, year after year.
Some newcomers enter the scene, and occasionally, one of the leaders drops back, but most of the strong high-interest savings account performers continue to offer competitive rates consistently.
For this reason, MoneyRates continuously monitors rates from hundreds of banks and tracks banking trends by measuring rates in a representative cross-section of the banking industry through regular rate surveys.
This cross-section includes 50 of the largest deposit institutions in the United States and represents nearly three-quarters of all deposits in U.S. banks.
Our America’s Best Savings and Deposit Rates survey aids us in selecting the best savings accounts with consistently high rates.
Frequently Asked Questions
A savings account is money on deposit that earns interest. Savings accounts may be offered by banks or credit unions. Savings accounts are not designed for frequent transactions like bill payments but represent a way to keep your money safely earning interest and available when you need it.
While you may use a checking account for paying regular expenses, a savings account is a good place to start accumulating money for future needs.
The advantage of having a savings account is that they typically earn more interest than checking accounts. Also, when you are trying to save money, it can help to have your savings kept separate from an account you are accessing regularly for living expenses.
You can take money out of a savings account at any time, but you are limited to six withdrawals per month.
A high-interest savings account is a good place to set aside money for needs you expect to arise within the next year or so, such as buying a car or making a down payment on a house.
For long-term needs, you may want to consider a long-term CD because they typically offer more interest.
For very long-term goals like saving for retirement, an investment account may be more appropriate because the opportunity for investment growth gives you a better chance of staying ahead of inflation.
Because you can access money in a high-yield savings account at any time, they are also a good place to put an emergency fund. An emergency fund is money you have set aside for unexpected needs.
Money market accounts have many of the same features as savings accounts, so it is a good idea to compare interest rates between savings and money market accounts to see which offers the highest rates. Another alternative is a CD, which could pay higher interest if you are confident you won’t need to access your money for a specific period of time.