The best interest-earning bank accounts today: 6-month CDs paying up to 4.20% APY

by William

Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Looking for a place to store your short-term savings? High-yield savings accounts pay much higher interest rates than traditional savings accounts.

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The most competitive high-yield savings accounts earn at least 3.25% APY (Annual Percentage Yield) right now. We update our guide on a weekly basis to find the most well-rounded options. Here are our top picks for high-yield savings accounts right now.

The best online savings accounts

UFB High Rate Savings

Why it stands out: UFB Best Savings doesn’t charge monthly service fees. It also comes with a complimentary ATM card, so you’ll have easy access to your bank account.

The Better Business Bureau also gave UFB Direct an A+ rating. The BBB looks at a company’s responses to customer complaints, honesty in advertising, and transparency about business practices to determine ratings. UFB Direct also hasn’t been involved in any recent public scandals.

What to look out for: UFB Best Savings doesn’t have robust savings and budgeting tools like some other competitors. If you’re looking for ways to save for individual goals and stay motivated, you might prefer one of our other top picks.

It also may not be easy to deposit cash at UFB Direct. You’ll have to see if there are cash-accepting ATMs in your area.

Bask Bank Interest Savings Account

Why it stands out: Bask Bank doesn’t require an opening deposit or minimum account balance. It also doesn’t charge monthly maintenance fees. 

What to look out for: The main downside to the Bask Bank Interest Savings Account is that you’ll have limited access to your account. To deposit or withdraw money, you’ll need to link an external bank account and initiate a bank transfer.

You’ll also want to bank with another institution if you’d like to open a joint bank account. Bask Bank only offers individual bank accounts.

We use ratings from the Better Business Bureau so you can see how a bank addresses customer issues.

Bask Bank received a D- rating from the BBB because it has received numerous customer complaints on the BBB website and it hasn’t responded to a customer complaint. However, its parent company Texas Capital Bank has an A+ rating from the BBB. Bask Bank hasn’t been involved in any recent public settlements.

BrioDirect High-Yield Savings Account

Why it stands out: BrioDirect is an online-only division of Webster Bank. The BrioDirect High-Yield Savings Account could be a good option if you’d like a savings account with zero monthly service fees and a competitive interest rate.

What to look out for: You’ll need a minimum of $500 to open an account, which is steep compared to other online banks.

The BBB gave BrioDirect’s parent company Webster Bank a B- rating because it received numerous customer complaints filed against the bank and hasn’t resolved a complaint. On the bright side, the bank hasn’t been involved in any recent public controversies.

TAB Bank High Yield Savings Account

Why it stands out: TAB Bank is an online-only financial institution. The TAB High-Yield Savings Account may be a good choice if you’d like a savings account that doesn’t charge monthly service fees and offers a high interest rate.

The Better Business Bureau gives TAB Bank an A+ rating. The BBB measures trustworthiness by looking at a company’s responses to customer complaints, honesty in advertising, and transparency about business practices.

What to look out for: TAB Bank doesn’t have an ATM network. If you use ATMs from an out-of-network ATM provider, TAB charges a $2 fee for a withdrawal and $1 fee for an inquiry. The ATM provider may charge a fee, too.

Bread Savings High-Yield Savings Account

Why it stands out: Bread Savings is a great choice if you have at least $100 to open an account. There are zero monthly services fees, and you’ll earn a competitive interest rate that’s higher than what many traditional and high-yield savings accounts currently pay. 

What to look out for: The main drawback to the Bread Savings High-Yield Savings Account is you’ll have limited access to your account. If you’d like to take out money, you’ll have to transfer funds to an external bank account. Other banks may offer an ATM card with a savings account so you’ll have direct access to your account.

The Better Business Bureau is currently updating its rating for Bread Savings. In July 2022, the BBB also opened an investigation into Bread Financial because it received customer complaints stating they could not access Comenity credit card accounts. According to the BBB website, Bread Financial said that due to its rebranding and software system, an upgrade was preventing customers from accessing their accounts. Bread Savings posted an FAQ on their website to explain the situation. 

Salem Five Direct eOne Savings

Why it stands out: Salem Five Direct eOne Savings stands out because it doesn’t charge monthly service fees and has a $10 minimum opening deposit. 

Salem Five has an A+ rating from the Better Business Bureau and it hasn’t been involved in any recent public controversies. 

What to look out for: You’ll earn a competitive interest rate as long as you maintain less than $1 million in your account. If you have more than $1 million, Salem Five Direct may transfer your money to a Statement Savings Account, which only pays 0.01% APY.

CIT Bank Savings Connect

Why it stands out: The CIT Bank Savings Connect Account is a solid online savings account. This is a good option if you want to avoid monthly service fees. 

What to look out for: You’ll need a minimum of $100 to open the savings account. Some of our other top picks may let you open an account with $0.

The Better Business Bureau (BBB) measures businesses by looking at customer complaints, honesty in advertising, and transparency about business practices. The BBB gives CIT Bank an A- rating because it hasn’t responded to a customer complaint.

LendingClub High-Yield Savings Account

Why it stands out: The LendingClub High-Yield Savings Account stands out because it charges zero monthly service fees and comes with an ATM card. 

What to look out for: You’ll need at least $100 to open the savings account. Some of the other options on our list have lower minimum opening deposits.

LendingClub received an A rating from the Better Business Bureau due to government action against the company. In July 2021, LendingClub Corporation paid $18 million in a settlement with the Federal Trade Commission when accused of deceptive lending practices that charged consumers hidden fees and told them they were approved for a loan even when they weren’t.

Synchrony High-Yield Savings Account

Why it stands out: The Synchrony High-Yield Savings Account could be worthwhile if you’re searching for a savings account that has flexible opening requirements. Synchrony doesn’t require an opening deposit or minimum account balance, and it doesn’t charge monthly fees.

The Better Business Bureau gives Synchrony an A+ rating. A strong BBB rating indicates the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.

What to look out for: Synchrony offers savings, CDs, and money market accounts, but it doesn’t have a checking account. 

What to do when your savings account interest changes

Interest rates on high-yield savings accounts closely follow the federal funds rate. That is to say, rates are variable and can change multiple times per year at the whim of the Federal Reserve. 

If the interest rate on your savings account changes significantly, you might decide to look at other financial institutions to see if you can find a more competitive interest rate elsewhere. However, bear in mind that changing accounts may not be worth the effort, particularly if your new account’s rate drops afterward.

You also might consider other savings account options. For example, buying savings bonds or setting up a CD ladder may be worth considering if you’ve already established your emergency fund.

Typical interest rates

Nationally, the average traditional savings account earns just 0.24% APY.

If you’re more comfortable banking with a brick-and-mortar bank, a traditional savings account may be a better option for you. Just know that you may not be getting the best possible interest rate, because online banks and credit unions usually offer higher rates. 

Savings account basics

A savings account is an interest-earning bank account. Accounts that are backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) are secure. Up to $250,000 per owner is insured in these bank accounts. 

What to look for in a savings account

When you’re looking for a savings account, you’ll want to read through the account disclosures and terms to review the account’s minimum balance requirements and minimum opening deposits. The account disclosure may also specify any fees associated with the account, and whether there are any transaction limits. 

The best savings account interest rates

Generally, you’ll find the best savings interest rates at online banks. The best high-yield savings accounts offer 3.25% APY or more right now. Right now, UFB Direct offers the highest interest rate on our list. UFB Best Savings pays 4.11% (as of 12/14/2022) APY.

Savings account fees

Depending on where you bank, some savings accounts may charge monthly service fees. A monthly service fee is an amount you’ll have to pay each month to maintain an account. Some accounts will allow you to waive a monthly service fee if you meet certain requirements while others cannot be waived.

Bear in mind, some savings accounts do not charge certain fees at all. For example, all the banks on our list do not charge any monthly service fees.

How savings accounts work

A savings account is a type of interest-earning bank account. A savings account rate is variable, which means it can fluctuate after you’ve opened the account. Your bank will usually email you to tell you the rate will go up or down soon.

Savings accounts may also have transfer limits, according to federal rule Regulation D. Generally, if a savings account has a transfer limit, this means that you’ll only be permitted to make six transfers from the account each month. If you exceed the transfer limit, you will have to pay a fee for each additional transfer.

The Board of Governors of the Federal Reserve has recently amended Regulation D, so banks may choose to suspend the monthly transfer limit so customers can make unlimited monthly transactions, or they could enforce a six-per-month limit.

The different types of savings accounts

There are six types of savings accounts: traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts, and specialty savings accounts. The best savings account for you may depend on your banking preference, goals, and when you’ll need to access your money. 

A high-yield savings account, for example, is a strong choice if you’re comfortable with banking digitally and want to earn a high interest rate.

Savings account glossary

Below is an overview of all the terms you may need to know about savings accounts: 

Savings account alternatives and related products

Why trust our recommendations?

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

Methodology: About our experts

There are a lot of high-yield savings accounts out there. Through our research, we’ve found that the best high-yield savings accounts are offered by banks with a strong online presence, robo-advisors, and other internet-only financial companies. 

Each week, we review high-yield savings accounts at nearly two dozen institutions to identify the strongest options. We also cross-reference our list against popular comparison sites like Bankrate and NerdWallet to make sure we don’t miss a thing. 

While interest rates are an important aspect of any high-yield savings account, we also consider minimum deposits and balance requirements, transfer limitations, and any other standout features. Most importantly, we don’t consider any high-yield savings accounts that impose monthly maintenance fees.

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts for your needs.

Here’s what they had to say about high-yield savings. (Some text may be lightly edited for clarity.)

Expert advice on choosing the best high-yield savings account for you

Generally, what makes a high-yield savings account good or not good?

Roger Ma, CFP:

“It might not be as seamless to get your money out of an online savings account as it is a brick-and-mortar, but you don’t want to have so much friction where it’s such a pain to get the money out when you need it.”

Mykail James, CFEI: 

“Anything with a fee is not a good high-yield savings account. Anything that restricts how much you can save is, to me, not very good. If I can’t save more than $10,000 in this account, and then I have to move it over somewhere else — to me, that’s not a really good savings account, because it’s not really prepared to help me expand and grow, which is what a savings account is supposed to do. I also look at interest rates, definitely. I look to see when the interest is paid. Is it quarterly, or is it monthly? How often do they pay out interest, and what are the interest rate stipulations?”

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, CFP:

“So I guess we’ll start off with how much money you want to put in and … the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”

Laura Grace Tarpley, Personal Finance Insider:

“I would use a high-yield savings account or money market account for short-term goals or an emergency fund. You’ll probably want to choose whichever has a higher rate, but money market accounts can be good for emergency savings because they often come with a debit card or paper checks, making it easy to access money quickly. Then use CDs for longer-term goals, like buying a home in a few years.”

Frequently asked questions

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2 comments

Kendrick Emard November 29, 2022 - 12:19 am

Can’t get enough of it 👍

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Zella Schowalter November 29, 2022 - 2:51 am

Thank you:) Cool topic, write more often – you’re doing a great job 🙂

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