The 5 Best High-Yield Savings Accounts for August 2023
From getting $0.30/month to over $30/month in interest. Here are the top FDIC-insured high-yield savings accounts to maximize your savings.
Read time: 10 minutes
Unlock the power of your savings with high-yield savings accounts.
Before I had opened my first high-yield savings account, I was getting anywhere from $0.01 to $0.30 per month in a normal checking or savings account.
That was fine because it was the only thing that I knew existed.
That was until I heard about high-yield savings accounts and now getting over $30 per month interest!
In this article, I’ve compiled some of the top high-yield savings accounts that I’ve found are safely FDIC-insured and provide consistent rates.
One thing to keep in mind is that the rates do rise and fall based on a variety of economic factors, so these rates may be different when you select a specific one.
Whether you’re just getting started or financially well-versed, I hope that you find the list helpful in optimizing earnings and making the most out of your savings.
What is a high-yield savings account?
A high-yield savings account (commonly abbreviated as “HYSA”) is like a regular savings account, but it’s a bit fancier because it offers you a better interest rate on your money.
When you put your money into a regular savings account, the bank gives you a small amount of extra money called interest.
A high-yield savings account gives you even more interest, which means your money can grow faster over time.
This past year, I was able to make over $450 in interest just for having my money sitting in a high-yield savings account!
Best high-yield savings accounts
| Pick | Institution | APY |
|---|---|---|
| Best of the Crowd Favorites | Marcus by Goldman Sachs | 4.30% |
| Best For Simple Account Management | American Express High Yield Savings | 4.15% |
| Best Uniquely Fun Approach | Yotta Savings | 2.70% |
| Best Checking & Savings Combo | Ally Savings Account | 4.25% |
| Best APY Savings Rate | UFB High Yield Savings | 5.25% |
Best of the Crowd Favorites: Marcus by Goldman Sachs
Why this pick?
After speaking to a number of individuals about their high-yield savings account, Marcus by Goldman Sachs was one of the more popular options. Goldman Sachs has a strong, premium brand. I have found that some individuals open a Marcus account as an alternative to the AmEx High-Yield Savings Account to separate their investment and spending (credit card, liabilities) accounts.
Aug 2023 Interest Rate: 4.30% APY
Benefits (Pros):
- Competitive Interest Rates: Marcus offers attractive interest rates, helping your savings grow faster compared to traditional savings accounts.
- No Monthly Fees: You won’t face monthly maintenance fees, ensuring that more of your earnings remain in your account.
- Easy Online Access: Manage your account effortlessly through Marcus’ user-friendly online platform.
- FDIC Insurance: Marcus high-yield savings accounts are FDIC insured up to the maximum limit.
- No Minimum Deposit: You’re not required to make a large initial deposit to open a Marcus account.
Cons:
- No Physical Branches: Marcus operates solely online.
- Limited ATM Access: Marcus doesn’t provide ATM cards for direct access to funds.
- Variable Interest Rates: Interest rates can change over time.
Takeaway
Marcus by Goldman Sachs is a solid option if you’re looking for a high-yield savings account with no frills. Simple with minimal complexity. Personally, that is exactly what I strive to have with my finances.
Best For Simple Account Management: American Express High Yield Savings
Why this pick?
This is the institution that I opened an account with for a number of factors. In 2018, when I first opened the account, American Express was offering a high-yield savings account with one of the highest interest rates that I could find. I also didn’t need to worry about managing another account login because I already had an Amex credit card.
Aug 2023 Interest Rate: 4.15% APY
Benefits (Pros):
- Competitive Interest Rates: AmEx High Yield Savings accounts often offer higher interest rates compared to traditional savings accounts.
- No Monthly Fees: These accounts typically don’t have monthly maintenance fees.
- Easy Online Access: Manage your account conveniently online, including making transfers and checking balances.
- FDIC Insurance: AmEx High Yield Savings accounts are FDIC insured up to the maximum limit.
- Automatic Savings Options: Set up automatic transfers from your checking account.
Cons:
- Limited Physical Presence: American Express is primarily an online financial institution.
- Limited Account Options: AmEx focuses mainly on savings accounts.
- Variable Interest Rates: Interest rates can change over time.
Takeaway
If you already have an American Express credit card like myself, this might be an option to consider. I find it helpful to minimize the amount of account logins when possible.
Best Uniquely Fun Approach: Yotta Savings
Why this pick?
If you are looking for a savings account that adds a little fun into your savings journey — Yotta might be for you! With a gamified approach to savings, Yotta rewards depositors with a lottery-like experience. For every $25 deposited into your account, you’ll receive a “ticket” that gives you a chance to win cash prizes, including up to $10 million.
Aug 2023 Interest Rate: 2.70% APY
Benefits (Pros):
- Gamified Savings: Yotta adds a fun and engaging twist to saving money by offering a lottery-style experience.
- FDIC Insurance: Yotta partners with Evolve Bank & Trust, which is FDIC insured.
- Higher Interest Rates: Yotta offers the potential for your savings to grow faster compared to traditional savings accounts.
Cons:
- Risk of Not Winning: While the lottery aspect is fun, there’s no guaranteed reward.
- Limited Banking Services: Yotta focuses primarily on the gamified savings model.
Takeaway
If you are someone that enjoys gamifying your life or an alternative to your weekly lottery plays, Yotta Savings might be an option to consider.
Best Checking & Savings Combo: Ally Savings Account
Why this pick?
Ally Bank is one of the most popular online banking options. With one of the highest available high-yield savings accounts, that is actually only one of the reasons why Ally Savings made this list.
A unique feature of the Ally Savings account is the ability to create “Buckets.” As explained on the Ally Savings website, “Buckets allow you to dedicate parts of your savings to whatever you want. Think of them as digital envelopes. You can create up to 10 savings buckets, plus you’ll still earn interest on the total balance of your account.”
Aug 2023 Interest Rate: 4.25% APY
Benefits (Pros):
- Competitive Interest Rates: Ally Savings accounts offer attractive interest rates.
- No Monthly Fees: Ally doesn’t charge monthly maintenance fees.
- Easy Online Access: With Ally’s user-friendly online platform and mobile app, managing your savings becomes convenient.
- Buckets Feature: Organize your savings into different goals without opening multiple accounts.
Cons:
- No Physical Branches: Ally operates exclusively online.
- Variable Interest Rates: Interest rates can change over time.
Takeaway
Ally Savings is a great option if you organize your finances using the envelope method. With many of the traditional banks requiring minimum deposits to avoid maintenance fees, it is often hard to organize your spending across different accounts.
Best APY Savings Rate: UFB High Yield Savings
Why this pick?
Put simply, UFB High-yield savings has the highest Annual Yield Percentage (APY) of any of the financial institutions that I’ve researched.
Aug 2023 Interest Rate: 5.25% APY
Benefits (Pros):
- Competitive Interest Rates: UFB Direct Savings accounts offer the highest interest rates on this list.
- No Monthly Fees: You won’t encounter monthly maintenance fees with UFB Direct.
- Online Convenience: UFB Direct provides a straightforward platform for managing your savings.
Cons:
- Limited Account Options: UFB Direct mainly focuses on savings accounts and CDs.
- No Physical Branches: UFB Direct operates entirely online.
- Variable Interest Rates: Interest rates can change over time.
Takeaway
If you are looking for the financial institution that offers the most generous high-yield savings account, UFB Direct Savings may be worth considering. Currently offering a 5.25% APY, this is almost 1.00% more than most of the others on this list.
Frequently Asked Questions
How do I choose the best high-yield savings account?
To select the best high-yield savings account, consider factors such as the offered interest rates, any associated fees, minimum balance requirements, and whether the account aligns with your financial goals.
What is the difference between a traditional savings account and high-yield savings account?
A traditional savings account offers lower interest rates and fewer requirements, while a high-yield savings account provides higher interest rates, allowing savings to grow faster. However, high-yield accounts might have stricter conditions and limited access compared to traditional accounts.
What should I use a high-yield savings account for?
When aiming to establish an emergency fund or gather funds for significant expenses like a home down payment or a car, opting for a high-yield savings account can accelerate your progress towards achieving these objectives.
Summary
High-yield savings accounts offer a remarkable opportunity to boost your savings like never before. Shifting from minimal earning pennies to dollars per month can significantly add up over time.
Whether you’re a novice or a seasoned saver, these accounts can prove instrumental in maximizing your savings potential.
This article is for educational purposes and not financial advice. Please consider consulting with a licensed professional before making any financial decisions.
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