With rising interest rates in 2023, now is a great time to open or switch to a high-yield savings account to maximize your returns. In this article, we will discuss the top banks and credit unions offering the best savings account rates as of October 2023.
What to Look for in a High-Yield Savings Account
When searching for the best savings account, there are a few key factors to consider:
- Interest Rate – This is the annual percentage yield (APY) you earn on your deposits. Look for the highest rates within your deposit range.
- Minimum Deposit – Many accounts require a minimum opening deposit, usually ranging from $0 to $500. Make sure you meet the requirement.
- Fees – Watch out for monthly maintenance fees, fall below fees, and overdraft fees. The best savings accounts are free of fees.
- Accessibility – Look for an institution with robust online banking, ATM access, and mobile features for convenience.
- FDIC Insured – Make sure your deposits are FDIC insured up to $250,000 per depositor, per bank. This protects your money.
As you compare options, pay attention to any rate caps, tiered rates based on your balance, and other fine print details.
Top National Banks for Savings Accounts
Here are some of the top national brick-and-mortar banks offering competitive high-yield savings options:
CIT Bank – Up to 2.20% APY
CIT Bank consistently offers some of the highest published rates available nationwide. Their Savings Connect account stands out with a 2.20% APY on all balances. There is a $100 minimum to open, no monthly fees, and free transfers.
Marcus by Goldman Sachs – Up to 2.15% APY
Marcus joined the high-yield savings scene in 2016 and frequently appears at the top of the rate boards. Their Online Savings account offers a 2.15% APY with no minimums or fees. Deposits are FDIC insured.
Ally Bank – Up to 2.10% APY
Ally Bank is an established online bank with a strong reputation for value and transparency. Their Online Savings account carries a 2.10% APY with no minimum balance and no monthly fees. You can open an account online in minutes.
Capital One – Up to 2.00% APY
Capital One 360 offers an easy way to start saving with their Capital One 360 Savings. It consistently offers rates among the national leaders, currently at 2.00% APY with no minimums or fees.
Discover Bank – Up to 2.15% APY
Discover is best known for credit cards but also offers competitive deposit products like its Online Savings Account. It matches many of the top rates at 2.15% APY with $0 minimum balance and no monthly fees.
Best Online Banks for High Savings Rates
If you’re comfortable banking primarily online, the following digital banks often offer high yields:
CFG Bank – Up to 4.00% APY
CFG Bank broke rate ceilings when they launched their Premier Money Market account earning up to 4.00% APY. You need $1,000 to open the account and earn the top rate on balances up to $250,000 when you meet account terms.
Quontic Bank – Up to 2.51% APY
Quontic Bank’s High Yield Savings maxes at an exceptional 2.51% APY on balances of $5 million or more. No minimum balance is required to open an account and start earning a competitive interest yield.
BrioDirect – Up to 2.25% APY
BrioDirect offers accounts with innovative features and technology. Their BrioDirect Savings earns 2.25% APY with no monthly fees and a low $25 minimum balance.
CIBC Agility – Up to 2.80% APY
CIBC Agility brings savings rates normally seen at credit unions. Their Savvy Savings account offers 2.80% APY on balances up to $250,000 when you meet monthly requirements.
Axos Bank – Up to 1.81% APY
Axos Bank stands out for its high-yield savings paired with robust online and mobile tools. The Axos Bank High Yield Savings account offers 1.81% APY with no minimum balance.
Best Credit Unions for High Savings Rates
If you qualify for credit union membership, check out these options:
Consumers Credit Union – Up to 6.00% APY
Consumers Credit Union offers an unbeatable 6.00% APY on balances up to $10,000. You need a minimum $5 deposit to become a member and open a Free Rewards Checking account, which unlocks the savings deal.
Digital Federal Credit Union – Up to 6.17% APY
Digital Federal Credit Union pays 6.17% on deposits up to $1,000 when account terms are met. You’ll need to open a Checking account and maintain a monthly direct deposit for membership eligibility.
HAPO Community Credit Union – Up to 5.00% APY
HAPO Community Credit Union offers premium rates, like 5.00% APY on the first $10,000 in their Loyalty Savings account. You’ll need a $5 savings deposit to become a member if you live or work in eligible areas.
Affinity Plus Federal Credit Union – Up to 2.02% APY
Affinity Plus Federal Credit Union offers a Premium Savings account with competitive rates. Members can currently earn up to 2.02% APY on balances when meeting monthly requirements.
Georgetown Kraft Credit Union – Up to 5.00% APY
Georgetown Kraft Credit Union offers 5.00% APY on the first $2,000 in their Value Savings account when you maintain a checking account and enroll in eStatements. Membership eligibility is fairly broad.
What Does the Fed Interest Rate Hike Mean for Savers?
The Federal Reserve has aggressively raised its benchmark Federal Funds rate over the past year, including another 0.75% increase in September 2022. This is driving up deposit rates across the board as banks and credit unions compete for new customer funds. The national average savings still lags at only 0.17% APY, so it pays to shop around.
As the Fed continues rate hike efforts to slow inflation, savings yields are projected to continue rising through at least the end of 2022. Moving your money into an account with higher return potential means you can maximize savings growth. Just a few basis points of extra interest can add up substantially over time.
Shop Around for the Best Savings Account Rates
The banks and accounts highlighted here represent some of the best savings account interest rates available as of October 2023. However, rates change frequently based on federal rate moves, market competition, and individual institution needs.
Be sure to periodically review current rates and terms from your local institutions as well as nationally available options. Opening an account is quick and easy online, so don’t settle for anything less than the highest rate your money can earn.