Best High-Yield Savings Accounts Of July 2022

We’ve compared 73 online savings accounts at 53 nationally available banks and credit unions to find some of the best high-yield savings accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of July 1, 2022.

The best high-yield savings accounts are typically the ones offering the highest interest rates and meeting other customer needs. In addition to the APY you’ll earn, here are factors to consider when choosing a high-yield savings account:

• Fees. Paying fees for banking services can nullify interest earnings on your savings. Look for banks that don’t charge monthly maintenance fees and other fees for common features and services.
• Fine print. Some banks require you to meet specific monthly requirements to earn interest or achieve a higher interest tier. Determine whether you can meet these account requirements or minimums before opening a savings account.
• Convenience. The best interest rates are typically found at online banks. Also, make sure your bank offers convenient ways to deposit and access funds when you need them.
• Customer service. Customer service varies from bank to bank. The best banks offer multiple ways to receive customer support. Support options may include secure messages, chat, phone and email.

The accounts on this list have some of the best APYs available. They also rank well according to the overall criteria we’ve set for the Best Online Savings Accounts Of 2022.

To create a list of the best savings accounts, Forbes Advisor analyzed 73 online savings accounts at 53 financial institutions, including a mix of traditional brick-and-mortar banks, online banks, and credit unions. We ranked each account on 12 data points within the categories of APY, fees, minimum requirements, customer experience and digital experience. All of the accounts on our list are online-based accounts.

Here’s the weighting assigned to each category for high-yield savings accounts:

• APY: 70%
• Fees: 10%
• Minimums: 10%
• Customer experience: 5%
• Digital experience: 5%

We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. To appear on this list, the online savings account must be nationally available.

A high-yield savings account is a savings account that offers an interest rate several times the national average, which is 0.06% APY, according to the Federal Deposit Insurance Corporation (FDIC). The best high-yield savings accounts are often found among the best online savings accounts.

High-yield savings accounts are considered safe places to keep funds. Savings accounts at FDIC-insured banks are protected up to $250,000 per depositor for each account ownership category. Savings accounts at credit unions insured by the National Credit Union Administration (NCUA) get the same protection.

Can You Lose Money in a High-Yield Savings Account?

So long as your savings account is held at an FDIC-insured bank or NCUA-insured credit union, and you stay within the insurance limits ($250,000 per depositor for each ownership category), there’s no risk of losing money in a high-yield savings account. With government-backed insurance, your money is safe.

But inflation currently outpaces any yield you can hope to earn at a bank or credit union with a high-yield savings account. If you want to maintain your money’s buying power, you’ll need to be comfortable with risk—i.e., investing in stocks.

High-yield savings accounts work like traditional savings accounts but tend to offer much higher interest rates. When you deposit money into a savings account, the deposited funds earn interest based on account terms set forth by the financial institution.

You’ll generally find high-yield savings accounts at online banks or credit unions, not traditional brick-and-mortar banks.

Because of the increased savings potential, high-yield savings accounts can be a good place to keep funds you don’t plan to touch for a while but still want to keep accessible.

Here are terms to be aware of when shopping for a high-yield savings account.

• Savings account. A savings account is an interest-bearing account held at a bank or other financial institution.
• Money market account. A money market account is an interest-bearing account that operates like a high-yield savings account, but often with the addition of checking account functions, like check-writing capabilities and a debit card.
• Interest. Interest is the money a bank or other financial institution pays you for holding your money in a deposit account.
• Compound interest. Compound interest is interest earned on your interest. As interest is added to your principal balance, compound interest allows you to earn on the principal and added interest.
• APY. Annual percentage yield (APY) is a way to measure the total amount of interest earned on an interest-bearing account, expressed as a percentage, annualized over a year. The frequency that interest or dividends compound is included in the calculation.

Here’s what to consider when choosing a high-yield savings account:

• Annual percentage yield (APY). The best way to maximize your savings is to find an account offering a competitive APY.
• Fees. Some banks and credit unions charge monthly maintenance and other fees on deposit accounts. Fees can cut into the return on your savings investment. Look for a bank or credit union that charges few fees, or make sure there are ways to avoid being charged.
• Minimum deposit. Banks and credit unions may require you to deposit a minimum amount to open an account. Consider deposit requirements and whether you have funds available to meet the minimum.
• Minimum balance. Some banks and credit unions require you to maintain a minimum amount of money in your account to keep it open, earn interest or avoid monthly fees. Make sure you can meet this minimum requirement.
• Liquidity. Pay attention to the bank or credit union’s withdrawal and transfer options so you can access your money when you need it, whether that’s by transfer or ATM.

Opening a high-yield savings account is a relatively straightforward process. In many cases, you can open an account online or via your mobile device, although some banks and credit unions may require an in-person visit. The process can vary depending on the institution, but these are the general steps to open a high-yield savings account:

1. Shop around

Determine your banking needs and shop around to find a high-yield savings account that best fits your needs. Pay attention to APY, fee structure, minimums and compounding schedule.

2. Apply for an account

Once you’ve found a savings account at a bank or credit union, fill out an application to open an account, either online or in person. The bank will likely ask you to provide personal and financial information to verify your identity, including a government-issued photo ID, Social Security number, physical address and date of birth.

3. Fund your account

If your account is approved, you can fund your account. You can do this through the institution’s approved sources: generally, a linked bank account at another institution, wire transfer, check or cash.

Because of their increased earning potential, high-yield savings accounts are often a top choice for individuals who want to park their money for short- and long-term goals. Below are some ways you might choose to use a high-yield savings account.

Saving for a Down Payment

A high-yield savings account is a good option for saving for a down payment on a home. It provides enough savings potential without the higher risks associated with a taxable investment account.

Saving to Buy a Car

If you plan to buy a new or used car, you can set aside funds each month in a high-yield savings account to maximize your savings. Keeping your car fund separate from your everyday spending account makes it less likely you’ll use it before it’s needed.

Saving for a Family Vacation

A high-yield savings account can be a good place to stash your vacation fund. Calculate trip costs and set aside money each month to reach your goal.

Emergency Fund

Having an emergency fund can be a useful, often essential, part of your financial plan. Keeping your emergency fund in a high-yield savings account can help you make the most of your savings. It also keeps funds accessible if you need to cover an emergency, such as medical expenses, unexpected car repairs or a job loss.

Bottom Line

A high-yield savings account could be just the ticket if you have an upcoming short- or long-term savings goal, like saving for a vacation or a new car. You’ll likely maximize your savings more than you could at a traditional brick-and-mortar bank while still keeping your money accessible.
Shop around banks and other financial institutions to find a high-yield savings account that matches your specific banking needs.

• What Is A Savings Account And How Does It Work?
• Using Multiple Savings Accounts For Different Savings Goals
• Best Places To Keep Your Emergency Fund
• 3 Ways To Make Saving Money A Habit
• Get Your Children Saving: A Guide To Kids’ Savings Accounts
• Should You Switch Banks To Get A Better Interest Rate On Your Savings Account?