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The Best High-Yield Savings Account in 2023

What is a high yield savings account?

A high yield savings account works like a regular savings account except it pays a higher interest rate. This allows you to earn more on your money. Check out our article from last year for more information about HYSAs.

Show me how a HYSA works

In a “traditional” savings account, your $1000 is likely earning an annual percentage yield (APY) of .33%. That comes to be about 30 pennies every month, or about $3 per year. In a “high-yield” savings account, you’ll have a much higher APY (right now they are earning over 3%-4%). Your $1000 could be earning anywhere from $34 - 40 per year for every $1,000. That’s 10x the earnings!

What will I need to open an HYSA

It takes just a few minutes to open a high-yield savings account and all you need to provide is your basic personal information and link your checking account.

Where can you open an HYSA

Many banks and financial institutions offer high yield savings accounts. The key is to do your research and make sure the bank or financial institution is a good fit for you personally. You also want to make sure that the bank or financial institution is FDIC insured.

Let’s take a look at two of the many offers that are available right now:

Marcus also offers their account with no minimum deposit and no fees.

Ally also offers their account with no minimum deposit and no fees.

The minimum to open an account is $100. However CIT doesn’t charge any monthly fees.

Things to be aware of with high-yield savings account

  1. Shop around: Compare interest rates and fees from different banks and credit unions. Online banks often offer higher interest rates than traditional brick-and-mortar banks.
  2. Read the fine print: Be sure to review the terms and conditions of the account, including any fees or restrictions on withdrawals, to make sure it meets your needs.
  3. Keep an eye on interest rate changes: Interest rates can change over time, so be sure to monitor the interest rate on your savings account and consider switching to a different account if a better rate becomes available.

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