High Yield Savings Account Rates

Shawn Plummer

CEO, The Annuity Expert

Compare the best High Yield Savings Account rates from 423 banks and credit unions across the United States.

The Best High Yield Savings Account Rates

High Yield Savings Account

Certificates of Deposit vs. Fixed Annuity

The Top Fixed Annuities

Fixed annuities offer a guaranteed return for a set amount of years, similar to a CD. Guaranteed crediting rates for the terms below:

  • 2 YEAR TERM: 2.15%
  • 3 YEAR TERM: 2.60%
  • 4 YEAR TERM: 2.60%
  • 5 YEAR TERM: 3.05%
  • 7 YEAR TERM: 3.25%
  • Grow your money as fast as possible
  • Principal protection
  • Interest rate is locked for the term you select
  • Tax deferred growth
  • Withdraw annually without penalty
  • Lump sum death benefits
  • Accepts cash, 401(k), and IRA Funds

What’s The Difference Between a Fixed Annuity and CD?

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 3.25%Up to 1.25%
Principal ProtectionYesYes
Can Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401(k)YesNo
Death BenefitLump-SumLump-Sum

Are Annuities FDIC Insured?

Fixed annuities are not FDIC insured, but they have similar protections for your money. An annuity is an insurance policy guaranteed by the insurance company’s claims-paying ability. The insurance companies are members of the state insurance guarantee associations in each state where they do business. Each state insurance guarantee association protects consumers in the unlikely event that their insurance company fails and defaults on their obligations to their consumers (limits vary per state).

For example, Georgia insures up to $250,000 of the annuity’s cash value per insured life if the insurance company becomes insolvent and can not fulfill its obligations to the insured.

Disclaimer: I may receive a small referral fee if you purchase something using a link in this article.

Which Accounts Offers The Best Bank Rates?

  • High yield savings accounts offer higher rates than a checking account.
  • Money market accounts offer higher rates than a high yield savings account.
  • A Certificate of Deposit (CD) offers a higher rate than a money market account.
  • A fixed annuity offers a higher rate than a CD.

What is a High Yield Savings Account?

A savings account is a type of bank account. Banks and credit unions offer them. These accounts often pay interest, but usually at lower rates than certificates of deposit (CDs).

Savings accounts have lower interest rates than other accounts in exchange for liquidity. Savings are good for the money that you might need access to in the event of an emergency.

A savings account is a good place to have money. Unlike CDs, there is no set time for how long you have to keep your money in the account. So, put your emergency fund in a savings account.

You want to save money. It is a good idea to use savings accounts and they are safe too. They are protected up to $250,000 at the FDIC banks and NCUA credit unions.

How do savings accounts work?

A savings account is a type of bank account that usually offers higher interest rates than a checking account. A savings account lets you take your money out any time and it doesn’t charge you for this.

You can take money out of your savings account, but then you will not earn interest. The longer you keep the money in the account, the more interest it will make.

Compound interest is when you get more money on top of the money you already have. That’s why it can be very important to save your money, and not spend it!

To compare how much interest you are earning, you can look at the annual percentage yield (APY). APYs include the compound interest from all the money that is in your account during a year. The APY is good for looking at how much more interest you might make than you are currently making.

CD vs. High Interest Savings Account

Certificates of deposit (CD) are bank accounts with a fixed interest rate for a set term. You have to keep your money invested in the CD until the end of that term, otherwise, you may need to pay a penalty if you withdraw it early.

Savings accounts are a type of bank account that usually earn little interest, while certificates of deposit offer higher rates but have requirements such as a minimum opening balance.

Shawn Plummer

CEO, The Annuity Expert

I’ve sold annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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