• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • How To Find The Best Student Loans And Rates
        • Best Private Student Loans Of May 2022
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Places To Refinance Student Loans In May 2022
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2022: Still One Of The Best Online Brokers
        • M1 Finance Review
        • TD Ameritrade Review
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 15 Best Side Hustles You Can Start Earning With Now
        • Side Hustle Ideas: 50+ Ways To Make Money Fast
        • 100+ Real And Honest Ways To Make Money In College
        • 80 Ways To Make Money From Home (In Your Pajamas)
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 35 Passive Income Ideas You Can Use to Build Real Wealth
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • How to Create Streams of Passive Income on a Limited Budget
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • Best High Yield Savings Accounts Of May 2022
        • Best Money Market Accounts Of May 2022
        • 10 Best Free Checking Accounts In May 2022
        • The Best Bank CD Rates Of May 2022
        • 10 Best Business Checking Accounts In May 2022
        • The Best Online Banks Of May 2022
        • 5 Best Credit Unions Nationwide of May 2022
        • Best College Student Checking Accounts In May 2022
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • The Best Credit Monitoring Services
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Banking » Savings » Best High Yield Savings Accounts Of May 2022

Best High Yield Savings Accounts Of May 2022

Updated: May 11, 2022 By Robert Farrington

Tweet
Share235
Share
Pin78
Email

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

High Yield Savings Account

If you're looking to get a better interest rate on your savings, you need to find the best high yield savings account out there. High yield savings accounts are popular because they typically pay more than a traditional account.

You usually find the best high yield savings accounts at online banks, since their overhead is lower. They then pass that savings on to you in the form of higher interest on your money!

We break down our favorite high yield savings accounts, as well as provide a list of the best savings accounts everyday in our table that updates daily. Given that interest rates change daily, make sure you check the table to get the best rates.

Plus, several of the banks on our list have awesome bonus offers. When you combine the bonus with an already high APY, you win!

Promo: CIT Bank Money Market Account. Right now, you can open a CIT Bank Money Market, earn 0.70% APY on your money, AND get 1 year of FREE Amazon Prime (a $139 value). Check our CIT Bank here >>

10 Best High Yield Savings Accounts
1. CIT Bank
2. Discover Bank
3. UFB Direct
4. Quontic Bank
5. Axos Bank
6. Liberty Savings Bank
7. Barclays Bank
8. PenFed
9. Marcus by Goldman Sachs
10. Capital One

Our Picks Of The Best Savings Accounts

Here's a quick breakdown of the best savings accounts for your money right now.

Note: The savings offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all savings companies or all savings offers available in the marketplace.

Bank Name

APY

Get Started

CIT Bank Logo 2019

0.90%

OPEN AN ACCOUNT

At CIT Bank, Member FDIC

Discover Bank Logo

0.60%

Get Up To A 

$200 Bonus!

OPEN AN ACCOUNT

At Discover Bank, Member FDIC

UFB Direct

0.81%

OPEN AN ACCOUNT

At AXOS Bank, Member FDIC

Quontic Bank

1.01%

$100

Minimum Deposit

OPEN AN ACCOUNT

At Quontic Bank, Member FDIC

Axos Bank Logo

0.61%

OPEN AN ACCOUNT

At AXOS Bank, Member FDIC

Liberty Savings Bank Logo

1.06%

OPEN AN ACCOUNT

At Liberty Savings Bank, FSB

0.70%

No

Minimum Deposit

OPEN AN ACCOUNT

At Barclays, Member FDIC

PenFed Credit Union Logo

0.70%

OPEN AN ACCOUNT

At Pentagon Federal Credit Union

0.70%

No

Minimum Deposit

LEARN MORE

At Goldman Sachs Bank USA,

Member FDIC

Capital One Logo

0.70%

LEARN MORE

At Capital One Bank, Member FDIC

Bank Name

APY

CIT Bank Logo 2019
OPEN AN ACCOUNT

At CIT Bank, Member FDIC

0.90%

Discover Bank Logo
OPEN AN ACCOUNT

At Discover Bank, Member FDIC

0.60%

Get Up To A

$200 Bonus

UFB Direct
OPEN AN ACCOUNT

At AXOS Bank, Member FDIC

0.81%

No

Minimum Deposit

Quontic Bank
OPEN AN ACCOUNT

At Quontic Bank, Member FDIC

1.01%

$100

Minimum Deposit

Axos Bank Logo
OPEN AN ACCOUNT

At Axos Bank, Member FDIC

0.61%

Liberty Savings Bank Logo
OPEN AN ACCOUNT

At Liberty Savings Bank, FSB

1.06%

OPEN AN ACCOUNT

At Barclays, Member FDIC

0.70%

No

Minimum Deposit

PenFed Credit Union Logo
OPEN AN ACCOUNT

At Pentagon Federal Credit Union

0.70%

LEARN MORE

At Goldman Sachs Bank USA,

Member FDIC

0.70%

No

Minimum Deposit

Capital One Logo
LEARN MORE

At Capital One Bank, Member FDIC

0.70%

The Full List Of Top Savings Account Options

We evaluate savings accounts based on their annual percentage rate (the interest you receive), the minimum balance requirements, locations available, and the terms and conditions of having the account. We may receive compensation from some or all of the companies listed below. Here are our recommendations of the best high yield savings accounts.

1. CIT Bank

The CIT Bank Savings Connect is one of our top accounts because they consistently have one of the highest interest rates offered to consumers. Also, their platform in incredibly easy to use, with the ability to sign up and get started in minutes.

This account is a combination checking and savings account - when you link them together (which is done automatically), and you get to earn the highest interest rate: 0.90% APY.

Right now you can earn up to 0.90% APY. 

There are no gimmicks with CIT Bank - you earn interest on your entire balance, and you have a low minimum to get started. Read our full CIT Bank review here.

Open an account here >>

CIT Bank Logo 2019
OPEN AN ACCOUNT

2. Discover Bank

Discover Bank has been around for a long time online, but not many people realize they have a bank beyond their credit cards. In fact, Discover is an incredibly robust bank with a great high yield savings account as well!

Right now, you can earn 0.60% APY.

Their account has no minimum balance requirements, and no fees!

Bonus Offer: You can get a bonus of up to $200 when you apply for your first Discover Online Savings Account, online, by phone, or via the Discover App using the code TCI222. You must apply by June 15, 2022, fund the account within 30 days of opening it, and complete the qualifying activities within 30 days of opening. See advertiser website for full details.

To qualify, you must do the following to earn one of the bonus offers:

  • $150 Bonus: Deposit into your account a total of at least $15,000
  • $200 Bonus: Deposit a total of at least $25,000

Remember, deposit must be posted within 30 days of account open date. Maximum bonus eligibility is $200.

Open an Account here >>

What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 6/15/22, 11:59 PM ET. Offer may be modified or withdrawn without notice.

Read our full Discover Bank review here.

Open an account here >>

Discover Bank Logo
OPEN AN ACCOUNT

Earn up to a $200 bonus!

3. UFB Direct

UFB Direct has recently come out with the current market leader for high yield savings. It used to be a tiered savings and have a high minimum, but they've moved away from that and now have a solid savings account!

Their savings account has no minimum deposit or balance required and $0 monthly maintenance fees.

Right now they offer one of the highest rates at 0.81% APY! And, of course, it's FDIC Insured. 

Read the full UFB Direct review here.

UFB Direct
OPEN AN ACCOUNT

4. Quontic Bank

The Quontic High Yield Savings Account is a top pick because of their awesome rate and the fact that they are one of the only FDIC-insured banks with a CDFI designation. 

Right now you can earn up to 1.01% APY with no monthly maintenance fees. You also get a great mobile app and mobile check deposit.

This account requires just $100 to open, and has no minimum balance requirements or monthly maintenance fees.

Read our full Quontic Bank review here.

Open an account here >>

Quontic Bank
OPEN AN ACCOUNT

5. Axos Bank

The Axos High Yield Savings Account is currently one of the top picks, with just a $250 minimum to get started. Axos consistently has one of the highest rates available at an online bank!

Right now you can earn up to 0.61% APY. However, the APY is tiered - and you can only earn the max rate up to $24,999.99. After that, it drops down to 0.25% APY until $100,000, and then down to 0.10% APY after that.

There are no monthly account minimums, maintenance fees, and more.

Read our full AXOS Bank review here.

Open an account here >>

Axos Bank Logo
OPEN AN ACCOUNT

6. Liberty Savings Bank

Liberty Savings Bank was founded in 1889, and is a family-owned community bank in Ohio. It's a great option if you're looking for a high yield savings account that isn't run by a huge corporation! And, of course, your funds are FDIC insured.

Right now you can earn up to 1.06% APY with no monthly maintenance fees.

This account requires just $1 to open, and has no minimum balance requirements or monthly maintenance fees.

Read our full Liberty Savings Bank review here.

Open an account here >>

Liberty Savings Bank Logo
OPEN AN ACCOUNT

7. Barclays Bank

Barclays Bank has a fairly standard online savings account that's highly comparable to other high yield online savings accounts on this list. 

Unlike others on this list, there is no minimum balance required to open an account with Barclays. They are about as traditional a bank as you get. Plus, they also don't charge any monthly fees as well.

Right now you can earn 0.70% APY. 

Read our full Barclay's Bank review here.

Open an account here >>

Barclays Logo
OPEN AN ACCOUNT

8. PenFed

PenFed (which stands for Pentagon Federal Credit Union) is a nationwide credit union that originally was focused on military members and their families. However, today you don't have to be in the military to join - and there are multiple ways you can do it.

But given they are a credit union, you can get great rates and accounts!

Right now, you can earn 0.70% APY.

Their account has just a $5 minimum to open, and no monthly maintenance fees!

Read our full PenFed Credit Union review here.

Open an account here >>

PenFed Credit Union Logo
OPEN AN ACCOUNT

9. Marcus by Goldman Sachs

Marcus by Goldman Sachs is a great choice for people looking for a top notch high yield savings account. With consistently high interest rates, no fees, and no minimums, we love Marcus by Goldman Sachs.

They do have generous transfer limits to get money in and out of the account, but they don't offer mobile check deposit, which could make it difficult if you have an "old fashioned" check to deposit.

Right now you can earn 0.70% APY.

Otherwise, check out Marcus to earn top rates. Read out full Marcus by Goldman Sachs review here.

10. Capital One

Capital One is credit card company that has also become known for having top notch banking products. This includes having an extremely competitive online savings account.

Plus, if you already use Capital One 360 for other products, it could be an easy fit.

Right now you can earn 0.70% APY. 

They only have $0 minimum to open, and no monthly account maintenance fees.

Read our full Capital One 360 Bank Review here.

Capital One Logo

More Accounts To Consider

These accounts are still great choices to consider for your money, and as interest rates, fees, and minimums change, you might see them in our top ten choices!

Other High Yield Savings Accounts
Ponce Bank
American Express
Synchrony
HSBC
Citizens Access
CIBC
Ally
Comenity Direct
Betterment
Varo
FNBO Direct
Vio Bank

Ponce Bank

Ponce Bank is a smaller bank located in New York and New Jersey that has been expanding its online presence. They offer a solid high yield savings account that rivals some of the best online banks.

Right now you can earn 0.75% APY on your high yield savings.

The great thing is that you can earn this on your full balance, and there is only a $1 minimum to open an account.

Open an account here >>

Ponce Bank Logo
OPEN AN ACCOUNT

American Express

American Express is more than a credit card company. American Express has Amex Savings, which consistently pays a top rate. It may not always be the best on this list, but it consistently is near the top, and that doesn't change much.

Plus, if you already use American Express for other products, it could be an easy fit.

Right now you can earn 0.65% APY. 

They only have $1 minimum to open, and no monthly account maintenance fees.

Read our full American Express Bank Review here.
Amex Savings Logo 2022

Synchrony

Synchrony Bank is one of the "old guard" on this list - one of the original online high yield savings account offerings. It consistently has a high APY, and a solid account.

This account has no monthly fee or minimum balance requirements. It also offers an ATM card with ATM reimbursements (which is rare for a savings account - much more common on a checking account). 

Right now, you can earn 0.85% APY. 

Read our full Synchrony Bank review here.

Synchrony
LEARN MORE

HSBC

HSBC is a bank that has been around for a long time - but only recently making big strides in the United States. They are one of the largest and most robust banks on this list, and they have a great savings account with a competitive high yield.

Combine their high yield savings account with the fact that they have $0 monthly maintenance fees and great online banking, this should be a top choice!

Right now they offer one of the highest rates at 0.15% APY, with no minimum balance requirements! FDIC Insured. 

Read our full HSBC Online Banking Review here.

Plus, combine it with a Premier checking account, and you can get up to a $700 welcome bonus!

HSBC Logo
LEARN MORE

Citizens Access

Citizens Access is an online savings account offered by Citizens Bank (who you may recognize from their Citizens Bank student loans). 

While this account does offer a high APY, you do need $5,000 to open an account. And if you drop below that minimum, your interest rate drops as well. This account has no monthly fees.

Right now, you can earn 0.50% APY.

Read our full Citizens Access bank review here.

Citizens Access Logo
LEARN MORE

CIBC

CIBC is a Canadian Bank that has started making in-roads to the United States. It's online savings account offering is top-notch, but it does have a higher minimum to open than most.

The account has no monthly maintenance fees, but does require at least $1,000 to open.

Right now, you can earn 0.72% APY.

Check out our full CIBC review here.

CIBC Logo
LEARN MORE

Ally

Ally Bank has always been a popular online savings option. They were one of the first truly friendly online banks. However, their rate isn't always at the top of the pack.

With rates declining, they are finally a bit competitive.

This account has no monthly fee or minimum balance requirements. 

Right now, you can earn 0.60% APY. 

Read our full Ally Bank review here.

Ally Bank
LEARN MORE

Comenity Direct

Comenity Direct has an online high yield savings account that rivals most well-known banks. Plus, this bank has no hidden fees and they make accessing your money easy!

Right now they offer a great rate at 1.00% APY, with just a $100 minimum balance and no monthly maintenance fees fees! 

You can also earn interest on up to $10,000,000 - which is extremely generous compared to most accounts.

Read our full Comenity Direct review here.

Comenity Direct Logo
LEARN MORE

Betterment

Betterment Everyday™ is the newest player in the high yield savings account space. They are one of the largest robo-advisors, and now they have a great savings account (and checking account coming soon).

Combine their high yield savings account with the fact that they have $0 monthly maintenance fees and great online banking, this should be a top choice! Plus, they advertise faster withdrawals than other banks!

Right now they offer one of the highest rates at 0.35% APY, with no minimum balance requirements and no fees! FDIC Insured up to $1,000,000.

Open An Account Here >>

Betterment Logo
OPEN AN ACCOUNT

Varo

Varo is an online bank that offers a high yielding savings account. While this bank is online, it offers a lot of the same features you'd expect from a traditional bank.

Plus, you don’t pay monthly fees and there are no account minimums.

Right now you can earn 0.50% APY. APY Variable and Subject to Change.

Check out our full Varo Money review here.

Open An Account Here >>

Varo Bank logo
OPEN AN ACCOUNT

FNBO Direct

FNBO Direct is the online banking branch of First National Bank of Omaha. If you've never heard of them, you've definitely seen them populate the lists of online savings accounts.

They consistently offer top rates, and only have a $1 minimum to open an account. 

Right now you can earn 0.45% APY. 

FNBO Direct
OPEN AN ACCOUNT

Vio Bank

Vio Bank is another extremely popular online savings account that typically has a top notch rate. 

Their savings account has no monthly fees and only a $100 minimum to open.

Right now you can earn 0.50% APY. 

Read our full Vio Bank review here.

Vio Bank Logo
OPEN AN ACCOUNT

What To Consider When Comparing Bank Savings Accounts?

There are a few important considerations when comparing high yield savings account options. You may not be thinking about these, but we look at them all the time when comparing the best options.

Interest Rate (Or Annual Percentage Yield - APY)

The interest rate (or APY) is typically the most common thing you're going to look at when shopping for a savings account. You want to find the account that pays the highest amount - right? 

In most cases, yes, a higher APY is always better. The higher the APY, the more interest you're going to earn on your deposits. However, if an account requires a high balance to earn the highest rate, and you can't meet that deposit level, you may want to consider another account where you can meet the requirements.

How Often Rates Change

Another factor to consider is how often interest rates change. The simple truth is, most of the banks on our list will move pretty consistently with each other. That could be up or down, depending on the Fed Funds Rate.

However, sometimes banks will change their rates because of their own needs, and that's what you want to avoid. We select banks on our list that are consistently at the top of the rate tables, so even if the rates are changing, you can typically find these banks among the best. 

How Consistent A Bank's Offering Is

Consistency is key when it comes to rates. Rates will change, but you want to find a bank that is consistently near the top.

What you don't want is a bank that offers an amazing introductory rate, then quickly drops it after 6 months. You will find that, overall, this will hurt your returns because the total annual APY will be lower than you'd get with a bank that is consistent.

So, when comparing high yield savings accounts, make sure you're looking for banks that offer consistency, not promotional rates.

Minimum Balance Requirements

When comparing savings account options, you'll quickly notice that there are banks with no minimum balance requirements, and those with high minimum balance requirements. Sometimes, to earn the highest interest rate on your savings account, you need to meet certain deposit minimums. And sometimes those minimums can be really high - upwards of $100,000! 

If you can't meet the minimum balance requirements or minimum opening deposit requirements to get the best APY, then you should consider an account where you can meet it. Yes, you might sacrifice a little bit of interest, but in the long run, you'll be better off!

Account Options

Finally, you'll want to look at the different account options available to you. What this means is:

  • Does the bank offer physical branches or are they online only?
  • How can you deposit cash?
  • ATM access?
  • How easy is it to get your money out of the account? Do they offer ACH or checks?
  • How is the customer service? What are the customer service options - phone, chat, email, etc.?
  • Do they have an online app?

These features aren't necessarily as important as the interest rate and balance requirements, but depending on your needs, they can make a big difference in how happy you are with your online savings account.

Frequently Asked Savings Account Questions

What is a savings account?

A savings account is a type of savings vehicle that is offered by banks, credit unions, and financial services firms (like brokerages). Savings accounts are federally insured, meaning your money is safe. These accounts also typically pay interest, more than you would earn keeping your money in other bank accounts, like a checking account. Savings accounts also typically limit how many withdrawals you can make each month, limiting their ability to be used other than for saving.

How does an online savings account work?

Online savings accounts work just like traditional brick and mortar bank accounts, except that everything is done online or via a mobile app. The benefit of this is that online accounts typically offer higher interest rates to savers – passing on the savings of not having a lot of branches.

What makes a savings account a high yield account?

The designation of a high yield savings account is for accounts that provide above average interest rates to their customers. In 2022, the top savings accounts provide over 0.60% APY, while the average interest rate is just 0.09% APY.

What is the best interest rate on a savings account?

The best interest rate on a savings account is over 0.60% APY, but that may be a promotional interest rate.

What are the fees charged to have a savings account?

The best savings account don’t charge any type of monthly fees to use their account. However, some banks may charge monthly maintenance fees, unless specific balance requirements and/or deposit requirements are met.

How safe is my money in a savings account?

Money in a savings account is FDIC insured up to the FDIC insurance limits (typically $250,000 per person). Some banks may extend higher insurance limits on your account.

What is the limit on withdrawing money from a savings account?

Most savings accounts impose limits on withdrawals each month. Called Reg D, this is a federal rule that limits savings accounts withdrawals to just 6 per month. Some accounts avoid this by classifying themselves as a cash management account.

Can I lose money in a savings account?

In general, you cannot lose money in a savings account. As long as your balance is below the FDIC insurance limit, you cannot lose money. The exception is having money beyond the FDIC insurance limit, and the bank fails. In this rare scenario, you could lose money in a savings account.

How does a savings account compare to a CD?

A savings account is more liquid than a certificate of deposit, but typically provides slightly lower interest rates compared to the shortest duration CDs. With CDs, you must “lock–up” your money for a period of time, usually at least 3 months, but upwards of 6 years. In exchange for locking up your money, you get a higher interest rate than you would with a savings account. If you need the liquidity, then a savings account is the preferred savings vehicle.

What is the average interest rate on a savings account?

According to the FDIC, in 2022, the average savings account pays just 0.09% APY on a savings account.

How do the Fed interest rates affect savings accounts?

When the Fed raises or lowers interest rates, banks adjust their savings account interest rates accordingly. In rising rate environments, banks will offer higher interest rates, and in declining rate environments, banks will lower their interest rates offered on savings accounts.

What is a promotional APY?

A promotional APY is the interest rate you can earn for a specific duration exchange for taking some specific action. For example, many banks offer new customers a promotional APY on their savings account for the first 6 months or one year. Then, after the promotional period, your APY will drop back down to the standard rate offered.

Final Thoughts

A high yield savings account can be a great way to save your money. You typically earn higher interest rates, but there are some restrictions above and beyond what you usually find for normal savings accounts. You can compare the differences between a savings account and money market here.

Just like any account, make sure you're opening the best savings account for your needs so you can reap the rewards.

Methodology

The College Investor is dedicated to helping you make informed decisions around complex financial topics like finding the best savings account. We do this by providing unbiased reviews of the top banks and savings accounts for our readers, and then we aggregate those choices into this list.

We have picked savings accounts based on our opinions of how easy they are to use, their costs and fees, any interest rates and bonuses provided, and a variety of other factors. We believe that our list accurately reflects the best savings accounts in the marketplace for consumers.

Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

Best High Yield Savings Accounts Of May 2022
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
3 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Primary Sidebar

Featured Bank Reviews

>  CIT Bank (recommended)
>  Discover  (recommended)
>  Barclays
>  Chime
>  Chase Bank
>  American Express Savings
>  Axos Bank
>  Quontic Bank

More On Banking

  • 10 Best Free Checking Accounts In May 2022
  • The Best Online Banks Of May 2022
  • The Best Bank CD Rates Of May 2022
  • Best Money Market Accounts Of May 2022
  • Best High Yield Savings Accounts Of May 2022
  • Best High-Yield Checking Accounts Of May 2022
  • The Best Bank Bonus Offers
  • The Best Business Checking Accounts

Footer

Banking

  • 10 Best Free Checking Accounts In May 2022
  • The Best Online Banks Of May 2022
  • The Best Bank CD Rates Of May 2022
  • Best Money Market Accounts Of May 2022
  • Best High Yield Savings Accounts Of May 2022
  • Best High-Yield Checking Accounts Of May 2022
  • The Best Bank Bonus Offers
  • The Best Business Checking Accounts

Investing

  • Best Online Stock Brokers In 2022 (According To Readers)
  • Best Brokerage and Investing Bonus Offers In May 2022
  • The Best Places To Open An HSA (Health Savings Account)
  • 5 Best Investing Apps With Free Stock Trading
  • How To Buy Stocks Online For Free
  • The Best Robo-Advisors Of 2022
  • The Best Self-Directed IRA Providers
  • The Best Traditional And Roth IRA Accounts Of 2022
  • Comparing The Most Popular Solo 401k Options
  • Top 3 Automatic Investment Apps Of 2022

Student Loans

  • Best Places To Refinance Student Loans In May 2022
  • Best Private Student Loans Of May 2022
  • How To Find The Best Student Loans And Rates
  • Best Student Loan Refinancing Bonuses And Promotional Offers

Insurance

  • The Top 10 Online Life Insurance Companies
  • The Ultimate Guide To Renters Insurance – Everything You Need To Know
  • The Cheapest Car Insurance For College Students

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2022 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz