Savings account rates we track at CNET haven’t changed much in the past two weeks -- a reflection of the Federal Reserve’s decision to continue its interest rate pause as inflation begins to reverse course.
My Banking Direct is one outlier among banks -- it hiked the annual percentage yield, or APY, on its high-yield savings account to 5.35% last week. How other banks respond to inflation news and the Fed’s rate pause will play out over the next few weeks. If, as many experts predict, interest rates remain at current levels well into next year, a 5% APY or more will boost interest earnings for anyone looking to grow an emergency fund or sinking fund.
Savings accounts with 5% APY or higher
| Bank | APY | Min. deposit to open |
|---|---|---|
| Digital Federal Credit Union | 6.17% (on balances up to $1,000) | $5 |
| TAB Bank | 5.27% | $0 |
| Newtek Bank | 5.25% | $0 |
| UFB Direct | 5.25% | $0 |
| Bread Savings | 5.15% | $100 |
| EverBank | 5.15% | $0 |
| Bask Bank | 5.10% | $0 |
| BMO Alto | 5.10% | $0 |
| CIT Bank | 5.05% | $100 |
| DollarSavingsDirect | 5.00% | $0 |
| Laurel Road | 5.00% | $0 |
| My Banking Direct | 5.00% | $500 |
| Varo Bank | 3.00% to 5.00% | $0 |
Digital Federal Credit Union
Primary Savings- APY APY = Annual Percentage Yield.
- 6.17% (on balances up to $1,000)
- Min. deposit to open
- $5
The DCU Primary Savings account’s 6.17% APY tops our list of high-yield savings accounts. However, this APY only applies to balances up to $1,000. Any balance above that earns a 0.15% APY, which is less than the national average of 0.46%. We like that DCU offers mobile check deposits and has plenty of fee-free ATMs, but it doesn’t offer many perks beyond that.
The credit union has 24 branches in New Hampshire and Massachusetts, but it serves members nationwide through a network of more than 5,900 co-op shared branches. Membership is available to employees or members of partner organizations or people who live in specific communities in Massachusetts. Visit its website for eligibility requirements.
Aside from the Primary Savings account, DCU also offers several other savings accounts that may have different APYs and features. These include an Advantage Savings account and a Member Described Savings account.
- No monthly fees or minimum balance requirements
- $5 deposit required
- Mobile check deposits via app
- 80,000 fee-free ATMs nationwide
- Highest APY is limited to balances up to $1,000
The DCU Primary Savings account’s 6.17% APY tops our list of high-yield savings accounts. However, this APY only applies to balances up to $1,000. Any balance above that earns a 0.15% APY, which is less than the national average of 0.46%. We like that DCU offers mobile check deposits and has plenty of fee-free ATMs, but it doesn’t offer many perks beyond that.
The credit union has 24 branches in New Hampshire and Massachusetts, but it serves members nationwide through a network of more than 5,900 co-op shared branches. Membership is available to employees or members of partner organizations or people who live in specific communities in Massachusetts. Visit its website for eligibility requirements.
Aside from the Primary Savings account, DCU also offers several other savings accounts that may have different APYs and features. These include an Advantage Savings account and a Member Described Savings account.
- No monthly fees or minimum balance requirements
- $5 deposit required
- Mobile check deposits via app
- 80,000 fee-free ATMs nationwide
- Highest APY is limited to balances up to $1,000
TAB Bank
High Yield Savings- APY APY = Annual Percentage Yield.
- 5.27%
- Min. deposit to open
- $0
TAB Bank, an online-only bank, offers a highly competitive APY for its high-yield savings account. There’s no minimum balance or deposit required, and you only need 1 cent in your account to start earning interest.
We also like that you can receive mobile alerts and text messages. For example, you can receive alerts about withdrawals when your account falls below a certain limit. Another benefit is that TAB has extended customer service hours -- Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays.
- No monthly fees, minimum deposit or balance requirements
- $5 monthly fee for paper statements
- Full suite of deposit accounts available
- Mobile check deposits via app, plus text alerts
- Extended customer service hours
TAB Bank, an online-only bank, offers a highly competitive APY for its high-yield savings account. There’s no minimum balance or deposit required, and you only need 1 cent in your account to start earning interest.
We also like that you can receive mobile alerts and text messages. For example, you can receive alerts about withdrawals when your account falls below a certain limit. Another benefit is that TAB has extended customer service hours -- Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays.
- No monthly fees, minimum deposit or balance requirements
- $5 monthly fee for paper statements
- Full suite of deposit accounts available
- Mobile check deposits via app, plus text alerts
- Extended customer service hours
Newtek Bank
Personal High-Yield Savings- APY APY = Annual Percentage Yield.
- 5.25%
- Min. deposit to open
- $0
Newtek Bank is an online-only subsidiary of Newtek One, a financial services company. Its savings account APY applies to all balance levels, but you’re limited to six withdrawals per statement cycle. Also, the account doesn’t come with an ATM card.
You can open as many personal banking accounts as needed and manage them all through an online banking account or mobile app. But if you don’t want to manage your account online or will need to make more than six monthly withdrawals, it’s best to consider other options.
- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- No service or transaction fees
- Limit of six withdrawals per statement cycle
- Live customer support available 24/7
Newtek Bank is an online-only subsidiary of Newtek One, a financial services company. Its savings account APY applies to all balance levels, but you’re limited to six withdrawals per statement cycle. Also, the account doesn’t come with an ATM card.
You can open as many personal banking accounts as needed and manage them all through an online banking account or mobile app. But if you don’t want to manage your account online or will need to make more than six monthly withdrawals, it’s best to consider other options.
- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- No service or transaction fees
- Limit of six withdrawals per statement cycle
- Live customer support available 24/7
UFB Direct
UFB Premiere Savings- APY APY = Annual Percentage Yield.
- 5.25%
- Min. deposit to open
- $0
UFB’s premier savings account has a highly competitive APY that applies to all balances -- unlike some banks highlighted above that reserve top APYs for specific balance tiers.
In addition to great rates, we like that UFB Direct’s savings account comes with a free ATM card and unlimited free transfers between accounts. However, there’s a limit of six withdrawals a month -- after that, there’s a $10 excessive transaction fee. That doesn’t apply to ATM transactions, though.
As an online-only bank, UFB Direct doesn’t have physical branches, but you can make deposits and transfers through its mobile banking app, online platform and SMS mobile banking. This can come in handy if you don’t have access to Wi-Fi or mobile data to manage your account.
- No monthly fees, minimum deposit or balance requirements
- Premier Money Market account also earns the same high-yield APY
- Mobile check deposits via mobile app
- Expanded insurance protection available up to $150 million
- ATM card available
UFB’s premier savings account has a highly competitive APY that applies to all balances -- unlike some banks highlighted above that reserve top APYs for specific balance tiers.
In addition to great rates, we like that UFB Direct’s savings account comes with a free ATM card and unlimited free transfers between accounts. However, there’s a limit of six withdrawals a month -- after that, there’s a $10 excessive transaction fee. That doesn’t apply to ATM transactions, though.
As an online-only bank, UFB Direct doesn’t have physical branches, but you can make deposits and transfers through its mobile banking app, online platform and SMS mobile banking. This can come in handy if you don’t have access to Wi-Fi or mobile data to manage your account.
- No monthly fees, minimum deposit or balance requirements
- Premier Money Market account also earns the same high-yield APY
- Mobile check deposits via mobile app
- Expanded insurance protection available up to $150 million
- ATM card available
Bread Savings
High-Yield Savings Account- APY APY = Annual Percentage Yield.
- 5.15%
- Min. deposit to open
- $100
Formerly Comenity Direct, Bread Financial offers high-yield savings and certificate of deposit accounts through its consumer banking arm, Bread Savings. The bank requires a $100 minimum to open a savings account, but there are no monthly maintenance fees. You can make unlimited free deposits via mobile check, ACH transfer and wire transfer. Outgoing wire transfers cost $25, official check requests are $15 and paper statements are $5 per statement.
- No monthly fees
- Monitors and adjusts APYs based on market conditions to remain competitive
- Doesn’t offer ATM or debit cards with savings account
- Banking app supports mobile check deposits
Formerly Comenity Direct, Bread Financial offers high-yield savings and certificate of deposit accounts through its consumer banking arm, Bread Savings. The bank requires a $100 minimum to open a savings account, but there are no monthly maintenance fees. You can make unlimited free deposits via mobile check, ACH transfer and wire transfer. Outgoing wire transfers cost $25, official check requests are $15 and paper statements are $5 per statement.
- No monthly fees
- Monitors and adjusts APYs based on market conditions to remain competitive
- Doesn’t offer ATM or debit cards with savings account
- Banking app supports mobile check deposits
- APY APY = Annual Percentage Yield.
- 5.15%
- Min. deposit to open
- $0
EverBank, formerly TIAA, offers a high-yield savings account with an introductory 5.15% APY available for the first year on all balances. The bank operates several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 surcharge-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees.
Once your introductory period expires, the Yield Pledge promise guarantees that EverBank’s savings account APYs will remain competitive with the top 5% of savings accounts available. Currently, the ongoing rate beyond the introductory period is 4.75%.
- No monthly fees, minimum balance or balance requirements
- 5.00% introductory rate last for one year
- Yield Pledge promise guarantees APYs remain competitive
- Supports mobile check deposits via app
EverBank, formerly TIAA, offers a high-yield savings account with an introductory 5.15% APY available for the first year on all balances. The bank operates several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 surcharge-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees.
Once your introductory period expires, the Yield Pledge promise guarantees that EverBank’s savings account APYs will remain competitive with the top 5% of savings accounts available. Currently, the ongoing rate beyond the introductory period is 4.75%.
- No monthly fees, minimum balance or balance requirements
- 5.00% introductory rate last for one year
- Yield Pledge promise guarantees APYs remain competitive
- Supports mobile check deposits via app
Bask Bank
Bask Interest Savings Account- APY APY = Annual Percentage Yield.
- 5.10%
- Min. deposit to open
- $0
Bask Bank, an online subsidiary of Texas Capital Bank, has two different types of savings accounts. Its interest savings account offers a competitive APY on all balances, with no monthly fees or minimum deposit requirements. But if you’re looking to open a joint account, look elsewhere. Bask Bank doesn’t offer joint savings account options.
This bank also has a Mileage Savings Account you can explore if you like to earn American Airline miles you can redeem for free flights. Instead of earning a cash APY on your balance, you’ll earn 2.5 AAdvantage miles for every dollar you save annually. You can open one savings account of each type.
- No monthly fees, minimum deposit or balance requirements
- Two savings account options available -- Miles Savings and Interest Savings
- Doesn’t offer ATM or debit cards with savings account
- Mobile check deposits via app
Bask Bank, an online subsidiary of Texas Capital Bank, has two different types of savings accounts. Its interest savings account offers a competitive APY on all balances, with no monthly fees or minimum deposit requirements. But if you’re looking to open a joint account, look elsewhere. Bask Bank doesn’t offer joint savings account options.
This bank also has a Mileage Savings Account you can explore if you like to earn American Airline miles you can redeem for free flights. Instead of earning a cash APY on your balance, you’ll earn 2.5 AAdvantage miles for every dollar you save annually. You can open one savings account of each type.
- No monthly fees, minimum deposit or balance requirements
- Two savings account options available -- Miles Savings and Interest Savings
- Doesn’t offer ATM or debit cards with savings account
- Mobile check deposits via app
BMO Alto
Online Savings- APY APY = Annual Percentage Yield.
- 5.10%
- Min. deposit to open
- $0
BMO Alto is the online-only arm of BMO Financial Group. It offers two deposit accounts: a high-yield savings account and a CD. Its savings account boasts a competitive APY and has no monthly fees, minimum deposits requirements or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit.
This savings account is best paired with a checking account at another bank, since BMO Alto doesn’t provide a debit card or ATM access. It also doesn’t have a mobile app. You can only manage your money in this account through the online banking website and access or deposit cash through externally linked bank accounts.
- No monthly fees, minimum deposit or balance requirements
- Account access available only through website
- No mobile app
- No excessive transaction fees
BMO Alto is the online-only arm of BMO Financial Group. It offers two deposit accounts: a high-yield savings account and a CD. Its savings account boasts a competitive APY and has no monthly fees, minimum deposits requirements or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit.
This savings account is best paired with a checking account at another bank, since BMO Alto doesn’t provide a debit card or ATM access. It also doesn’t have a mobile app. You can only manage your money in this account through the online banking website and access or deposit cash through externally linked bank accounts.
- No monthly fees, minimum deposit or balance requirements
- Account access available only through website
- No mobile app
- No excessive transaction fees
CIT Bank
Platinum Savings- APY APY = Annual Percentage Yield.
- 5.05%
- Min. deposit to open
- $100
CIT Bank is the online division of First Citizens Bank, and it may make sense for you if you have $5,000 or more to deposit. It offers three types of savings accounts, but its highest-yielding one is its platinum savings account. There’s no monthly maintenance fee, but it does require a $100 minimum deposit to open an account.
You’ll earn 5.05% APY on balances of $5,000 or more -- but balances below this amount earn a paltry 0.25% APY. You can deposit checks and transfer money via its mobile app, and you can receive up to $30 per month in reimbursements for out-of-network ATM fees.
- No monthly fees
- Three savings account options available
- $5,000 balance required to earn the highest APY with the Platinum Savings account
- Rebates up to $30 per month in out-of-network ATM fees
CIT Bank is the online division of First Citizens Bank, and it may make sense for you if you have $5,000 or more to deposit. It offers three types of savings accounts, but its highest-yielding one is its platinum savings account. There’s no monthly maintenance fee, but it does require a $100 minimum deposit to open an account.
You’ll earn 5.05% APY on balances of $5,000 or more -- but balances below this amount earn a paltry 0.25% APY. You can deposit checks and transfer money via its mobile app, and you can receive up to $30 per month in reimbursements for out-of-network ATM fees.
- No monthly fees
- Three savings account options available
- $5,000 balance required to earn the highest APY with the Platinum Savings account
- Rebates up to $30 per month in out-of-network ATM fees
DollarSavingsDirect
Dollar Savings Account- APY APY = Annual Percentage Yield.
- 5.00%
- Min. deposit to open
- $0
DollarSavingsDirect is an online banking arm of Emigrant Bank that offers a savings account with competitive yields and no minimum initial deposit required. There’s no minimum balance required to avoid monthly fees. DollarSavingsDirect also doesn’t charge an excessive withdrawal fee, as some banks do when you exceed six transactions per month, giving you more flexibility to access your money.
- No monthly fees, minimum balance or balance requirements
- Money can only be accessed with a linked account through ACH transfers
- No excess withdrawal fees
- Deposits and withdrawals only permitted via external transfers
DollarSavingsDirect is an online banking arm of Emigrant Bank that offers a savings account with competitive yields and no minimum initial deposit required. There’s no minimum balance required to avoid monthly fees. DollarSavingsDirect also doesn’t charge an excessive withdrawal fee, as some banks do when you exceed six transactions per month, giving you more flexibility to access your money.
- No monthly fees, minimum balance or balance requirements
- Money can only be accessed with a linked account through ACH transfers
- No excess withdrawal fees
- Deposits and withdrawals only permitted via external transfers
Laurel Road
High Yield Savings Account- APY APY = Annual Percentage Yield.
- 5.00%
- Min. deposit to open
- $0
Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like many online banks, Laurel Road doesn’t accept cash deposits, so you’ll need to transfer money electronically to fund your account.
Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance.
- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- Withdrawal transactions limited to seven per month
Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like many online banks, Laurel Road doesn’t accept cash deposits, so you’ll need to transfer money electronically to fund your account.
Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance.
- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- Withdrawal transactions limited to seven per month
My Banking Direct
- APY APY = Annual Percentage Yield.
- 5.00%
- Min. deposit to open
- $500
My Banking Direct is an online service of Flagstar Bank, which is owned by parent company New York Community Bancorp. It recently boosted its high-yield savings account APY, offering the most competitive APY for all balance levels on this list. This online savings account has no maintenance fees, no minimum balance requirements and pays interest on all balances above $1. While we like that this bank offers a high APY, you’ll need at least $500 to open an account.
My Banking Direct doesn’t advertise information about wire transfer fees on its website or in its official account disclosures.
- No monthly fees or balance requirements
- $500 minimum deposit required to open an account
- $1 account balance needed to earn 5.00% APY
My Banking Direct is an online service of Flagstar Bank, which is owned by parent company New York Community Bancorp. It recently boosted its high-yield savings account APY, offering the most competitive APY for all balance levels on this list. This online savings account has no maintenance fees, no minimum balance requirements and pays interest on all balances above $1. While we like that this bank offers a high APY, you’ll need at least $500 to open an account.
My Banking Direct doesn’t advertise information about wire transfer fees on its website or in its official account disclosures.
- No monthly fees or balance requirements
- $500 minimum deposit required to open an account
- $1 account balance needed to earn 5.00% APY
Varo Bank
Online Savings Account- APY APY = Annual Percentage Yield.
- 3.00% to 5.00%
- Min. deposit to open
- $0
Varo Bank has a tiered savings rate that benefits lower balances. You’ll earn 5.00% APY on balances up to $5,000 and 3.00% APY on balances above that. But there are a few catches.
You’ll start off earning 3.00% APY. To qualify for 5.00% APY on balances of $5,000 or less, you must have $1,000 in direct deposits into your account every month, and you must end each month with a positive balance in both your Varo Bank (checking) and savings account. Qualifying direct deposits include paychecks, pensions or other government benefits such as Social Security.
While Varo presents an appealing APY for those with lower balances, any balance amount over $5,000 will earn the lower APY. However, we like that Varo offers more wiggle room to grow your stash with automatic round-ups that move your change from deposits and other transactions to your savings.
- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- Roundup tools to automate savings
- Highest APY available limited to balances up to $5,000
- Minimum of $1,000 in monthly direct deposits required to earn APY
Varo Bank has a tiered savings rate that benefits lower balances. You’ll earn 5.00% APY on balances up to $5,000 and 3.00% APY on balances above that. But there are a few catches.
You’ll start off earning 3.00% APY. To qualify for 5.00% APY on balances of $5,000 or less, you must have $1,000 in direct deposits into your account every month, and you must end each month with a positive balance in both your Varo Bank (checking) and savings account. Qualifying direct deposits include paychecks, pensions or other government benefits such as Social Security.
While Varo presents an appealing APY for those with lower balances, any balance amount over $5,000 will earn the lower APY. However, we like that Varo offers more wiggle room to grow your stash with automatic round-ups that move your change from deposits and other transactions to your savings.
- No monthly fees, minimum deposit or balance requirements
- Mobile check deposits via app
- Roundup tools to automate savings
- Highest APY available limited to balances up to $5,000
- Minimum of $1,000 in monthly direct deposits required to earn APY
How to find the best savings rates
When searching for a savings account that promises ultracompetitive rates, read the fine print. Some accounts advertising exceptional rates have a tiered-balance structure and apply the highest rate available only to a limited balance.
Digital Federal Credit Union, for example, applies a 6.17% APY only to accounts with balances of up to $1,000. Beyond that, your balance earns a mere 0.15% APY. Other banks may offer a competitive rate for a limited time, such as a teaser rate.
How does a 5% interest savings account work?
A high-yield savings account with a 5% APY works like most other savings accounts. You can regularly deposit and withdraw money while earning interest on your balance.
Interest represents the amount of money a financial institution will pay you in exchange for using your money to fund its lending operations. “Banks that need more deposits to feed their lending operations will be a little more aggressive in paying out to bring in deposits,” said Greg McBride, CFA and chief financial analyst for CNET sister site Bankrate.
McBride explained that smaller banks and credit unions without the marketing budget to rival more established banks compete for your dollars by offering better rates on deposit accounts. “How do you compete with the behemoth? You pay a better rate,” he said.
Interest is expressed as a percentage and calculated by multiplying the principal balance by the interest rate by a time period. Compound interest adds the interest earned from the previous period to the principal balance -- thus supercharging your savings growth. The annual percentage yield, or APY, represents the actual rate of return and takes into account the effects of compounding interest.
For example, $1,000 deposited in an account that earns a 5% APY with interest compounded monthly will earn $50 in interest in one year -- assuming the APY doesn’t change.
Interest rates advertised for savings accounts are variable and can change at any time. Your actual annual yield will fluctuate if your APY changes throughout the year.
How to open a high-yield savings account
Most online banks offer high-yield savings accounts. Opening an account is a pretty simple process. Here’s what you should expect:
- Choose an account. Before opening an account, remember to read the fine print to understand account details and any requirements to earn interest.
- Apply. Complete the application process at your chosen bank or credit union. You may also be able to do so online.
- Provide the necessary information. Provide a government-issued form of ID to verify your identity. Most banks will require your Social Security number or Individual Taxpayer Identification Number, phone number, physical address and other personal information.
- Make an initial deposit. Transfer or deposit the amount needed to fund the account.
- Activate online banking. Follow the steps provided to set up your online banking account if one is available. From there, you should be able to manage your account online and possibly via a mobile app or text messages.
The bottom line
A high-yield savings account that earns a 5% APY or more is an ideal option to store and grow your savings, whether to build an emergency savings fund or save for a specific goal. And since savings rates remain high, now’s a good time to maximize your interest-earning potential by switching to a high-yield savings account.
Be aware that some banks advertising the highest rates may have terms or restrictions. Pay attention to the fine print and choose the account that best serves your overall savings goals.
CNET maintains a regularly updated list of the best savings accounts and best high-yield savings accounts. Use these resources as a starting point to compare the most competitive APYs available from banks, credit unions and financial service firms that are insured by the Federal Deposit Insurance Corporation or National Credit Union Administration for up to $250,000 per person, per institution if the bank fails.
Methodology
CNET reviews savings accounts by comparing them across set criteria, including annual percentage yield, monthly fees, minimum deposits or balances, and access to physical branches.
We reviewed more than two dozen leading traditional banks and online financial offerings to determine our best savings accounts. Along with the aforementioned criteria, we also considered sign-up bonuses and other rewards. All savings accounts must also be insured by the FDIC.