High Yield Savings Account Rates

Shawn Plummer

CEO, The Annuity Expert

Saving money is important for everyone. In fact, you should be saving for retirement starting as early as possible! One of the best ways to save money is by using a high yield savings account. These accounts offer great interest rates, which can help your money grow over time. In this guide, we will discuss the best high yield savings accounts available right now. We will also provide tips on how to find the right account for you! Compare the best High Yield Savings Account rates from 423 banks and credit unions across the United States.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income. Why settle for less than 1% on your money when you can earn 3% and liquidity?

TermInsurance CompanyInterest Rate
24 MonthsOceanview Annuity2.85%
36 MonthsCanvas Annuity3.80%
48 MonthsOceanview Annuity3.35%
60 MonthsCanvas Annuity3.80%
72 MonthsOceanview4.30%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. Our goal is to help you find the highest interest rates for your retirement savings.

The Best High Yield Savings Account Rates

The best savings account rates across the United States.

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: 2.85%
  • 3-YEAR TERM: 3.80%
  • 4-YEAR TERM: 3.70%
  • 5-YEAR TERM: 3.80%
  • 6-YEAR TERM: 4.30%
  • 7-YEAR TERM: 3.85%
  • Grow your money as fast as possible
  • Principal protection
  • The 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 a 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%
Triple CompoundingYesNo
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.

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).

A high yield savings account is a bank account that offers a higher interest rate than a traditional savings account. The interest rate on a high yield savings account can be as much as 0.50% higher than the interest rate on a traditional savings account.

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 for up to $250,000 at the FDIC banks and NCUA credit unions.

How do savings accounts work?

A high yield savings account works just like a traditional savings account, with one key difference: the interest rate is higher. This means that you will earn more money on your deposited funds over time. High yield accounts typically have a minimum deposit requirement and may require you to maintain a certain balance in order to avoid monthly fees.

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.

How to calculate interest on a savings account

The interest rate on a savings account is typically expressed as an Annual Percentage Yield (APY). To calculate the interest, you will earn on your balance, simply multiply the APY by your account balance. For example, if you have a $1000 balance in a savings account with an APY of 0.06%, you will earn $0.60 in interest over the course of a year. To calculate the interest you will earn over a shorter period of time, simply divide the APY by 365 (the number of days in a year). For example, if you have a $1000 balance in a savings account with an APY of 0.06%, you will earn $0.16 in interest over the course of a month.

What Does APY Mean?

APY stands for Annual Percentage Yield. It is the amount of interest you will earn on your deposited funds over the course of one year. For example, if you have $1000 in a savings account with a 0.50% APY, you will earn $0.50 in interest over the course of one year.

What Are The Benefits Of Using A High Yield Savings Account?

There are several benefits of using a high yield savings account, including:

  • The ability to earn more money on your deposited funds.
  • A higher interest rate means that your money will grow faster over time.
  • You can use it for short-term or long-term savings goals.
  • Most accounts are FDIC insured, meaning your deposited funds are backed by the government.

What Are The Drawbacks Of Using A High Yield Savings Account?

  • There are a few drawbacks to using a high yield savings account, including:
  • The interest rate can change at any time.
  • You may have to pay taxes on the interest you earn if your account balance is above a certain amount.
  • Some accounts have higher monthly fees than traditional savings.
  • Rates are lower than money market accounts rates and CD rates.

What Are Online Savings Accounts?

An online savings account is a type of high yield savings account that you can open and manage entirely online. Online savings accounts typically have some of the highest interest rates available, making them a great option for savers looking to grow their money quickly. Many online banks also offer other perks, such as no monthly fees and higher deposit limits.

What’s The Difference Between Traditional Savings Accounts and Online Savings Accounts?

The biggest difference between traditional savings accounts and online savings accounts is the interest rate. Online savings account rates are typically much higher than traditional savings account rates. Other differences include:

  • Minimum deposit requirements: Traditional savings accounts often have minimum deposit requirements, while online savings accounts typically do not.
  • FDIC insurance: All traditional banks are FDIC insured, while not all online banks are.
  • Access to funds: With a traditional savings account, you may be able to make withdrawals at a physical bank branch or ATM. With an online savings account, you will typically only be able to access your funds through the online interface.

How Do I Choose The Best High Yield Savings Account?

There are a few things to consider when choosing the best high yield savings account for you, including:

  • Interest rate: Look for an account with a high interest rate. This will help your money grow faster over time.
  • Minimum deposit requirements: Make sure you can meet the minimum deposit requirements for the account.
  • FDIC insurance: Choose an account that is FDIC insured to protect your deposited funds.
  • Access to funds: Consider how you will need to access your deposited funds. If you need easy access, look for an account that offers ATM withdrawals or branch access. If you don’t need immediate access, an online savings account may be a better option.

How Do I Open A High Yield Savings Account?

Opening an account is easy and can be done entirely online. To open an account, you will need to:

  • Choose a bank or credit union: There are many banks and credit unions that offer high yield accounts. Do some research to find the best option for you.
  • Compare interest rates: Once you’ve chosen a few banks or credit unions, compare the interest rates they offer to find the highest rate available.
  • Compare fees: Make sure to compare any monthly fees associated with the account. Some accounts may have higher fees than others.
  • Open an account: Once you’ve chosen the best option for you, open an account by providing some personal information and funding your account with an initial deposit.

To open a savings account, you will need to provide identification and contact information. You may also be required to make an initial deposit. Some banks and credit unions have a minimum balance requirement for savings accounts. Once the account is opened, you will be able to deposit money into the account and earn interest on your balance.

What Is The Best High Yield Savings Account?

The best high yield savings account is the one that meets your unique needs and offers the highest interest rate available. Do some research to compare different options and find the account that’s right for you.

The best savings account for emergency money is a savings account that has 100% liquidity and no minimum balance requirement. The best long-term savings account for pre-retirement is a certificate of deposit. The best retirement savings account is a fixed annuity.

Which bank has the highest yield savings account?

This can change over time, so be sure to compare high-yield savings account interest rates from different banks before choosing an account. Some banks currently offering high yield accounts include:

Each bank offers different interest rates and terms, so be sure to compare your options before choosing an account.

Where Can I Put My Money To Earn The Most Interest?

There are a few different places you can put your money to earn interest, including:

  • High yield savings accounts: As we’ve discussed, high yield savings accounts offer some of the highest interest rates available.
  • CDs: Certificates of deposit (CDs) are another option for earning interest on your deposited funds. CDs typically have higher interest rates than savings accounts, but they also have stricter withdrawal requirements.
  • Money market accounts: Money market accounts are similar to savings accounts but typically have higher interest rates. They may also have higher minimum deposit requirements and stricter withdrawal restrictions.
  • Fixed Annuities: Fixed annuities are insurance products that can offer guaranteed interest rates. However, they also have strict withdrawal restrictions and may be subject to fees.

What is the highest yielding savings account right now? 

Money market accounts earn higher interest than savings accounts, CDs earn higher rates than money markets, and fixed annuities offer higher guaranteed interest rates than all three savings plans.

Will High Yield Savings Go Back Up?

Interest rates have been slowly rising over the past few years. However, they are still relatively low when compared to historical rates. It’s possible that interest rates will continue to rise in the future, but there is no guarantee.

What Are The Risks Of A High Yield Savings Account?

There are a few risks to consider when opening an account, including:

  • Inflation risk: Inflation can erode the value of your deposited funds over time.
  • Market risk: If interest rates rise, the value of your deposited funds may decrease.
  • Liquidity risk: Accounts typically have stricter withdrawal requirements than other types of accounts. This can make it difficult to access your funds in an emergency.

What is the difference between a checking account and a savings account?

A checking account is a type of bank account where you can deposit money and write checks against the balance. A savings account is a type of bank account where you can deposit money and earn interest on the balance. Savings accounts typically have higher interest rates than checking accounts, but there are usually restrictions on how often you can withdraw money from the account. Checking accounts are more flexible when it comes to withdrawals, but the interest rates are usually lower. If you need easy access to your money, a checking account may be the best choice. However, if you’re looking to earn interest on your deposits, a savings account may be a better option.

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.

High-Yield Savings Account Vs. Investing

When you invest in stocks, bonds, or mutual funds, you’re buying a piece of a company or other entity. You hope that the stock price will go up so you can sell it for more than you paid, but there’s always the risk that it could go down and you could lose money.

With a high yield account, you’re essentially lending your money to the bank. The bank pays you interest on that money, and as long as the bank doesn’t default, you will get your money back plus interest. There’s very little risk involved with a high yield savings account.

So which is better? It depends on your goals. If you’re looking for a safe place to park your money where it will grow slowly but steadily, a high yield savings account is a good choice. But if you’re looking for the potential to make more money, investing in stocks, bonds, or mutual funds may be a better option.

Helpful Tip: If you want to earn interest based on the performance of the stock market without the risk, consider a fixed index annuity. A fixed index annuity is a type of annuity that offers the potential for your money to grow at a faster rate than a traditional fixed annuity or savings account. The interest you earn is based on the performance of the stock market with principal protection, meaning you can’t lose money in a stock market crash.

High Yield Savings Account Vs. Fixed Annuity

A fixed annuity is an insurance product that can provide you with a guaranteed interest rate for a set period of time. Annuities can be a good option for people who are looking for a safe and secure way to grow their money.

Like a high yield savings account, there is little to no risk involved with a fixed annuity. Your money is guaranteed to grow at the interest rate set by the insurance company. However, the interest rate on an annuity is often lower than the interest rate you would earn on a high yield savings account.

Conclusion

If you are looking for a way to grow your money faster, a high yield savings account may be a good option for you. Be sure to shop around and compare interest rates before opening an account.

Thanks for reading! We hope this guide was helpful in understanding what a high yield savings account is and how it works. If you have any questions or want a quote from our high yield savings account calculator, please feel free to contact us below. Happy saving! 

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Frequently Asked Questions

Are high yield savings accounts even worth it?

Despite the risks, high yield savings accounts can still be a good option for earning interest on your deposited funds. Just make sure to do your research and compare different options to find the best account for you.

How much interest does $100,000 earn in a year?

This depends on the interest rate of the account you choose. For example, if you choose a high yield savings account with a 0.50% interest rate, your $100,000 would earn $500 in interest over the course of a year.

How often is interest paid on high yield savings accounts?

Interest is typically paid monthly or quarterly on high yield savings accounts.

Is it better to have a high yield savings account or a money market account?

This depends on your unique needs and goals. Both types of accounts offer interest on deposited funds, but money market accounts typically have higher interest rates. However, they may also have higher minimum deposit requirements and stricter withdrawal restrictions.

Do high yield savings accounts have fees?

Some high yield savings accounts may have monthly maintenance fees, but there are also many fee-free options available. Be sure to compare different account options to find one that best meets your needs.

Is there a limit to how much you can deposit in a high yield savings account?

Most high yield savings accounts have no limit on the amount you can deposit. However, some accounts may have restrictions on the amount of interest you can earn. Be sure to check the terms and conditions of your chosen account before making any deposits.

What is the best high yield savings account for me?

The best high yield savings account for you will depend on your unique financial needs and goals. Be sure to compare interest rates, fees, and withdrawal restrictions before opening an account.

What is the downside of a high-yield savings account?

The main downside of a high yield savings account is that they typically have lower interest rates than other types of accounts. However, they can still be a good option for earning interest on your deposited funds. Just make sure to do your research and compare different options to find the best account for you.

What’s the best way to use a high yield savings account?

The best way to use a high yield savings account is to save for long-term goals, such as retirement. However, you can also use it to build an emergency fund or save for a major purchase. Just make sure to compare interest rates and fees before choosing an account.

Which bank gives 7% interest on a savings account?

Currently, there is no 7% interest savings account. However, this could change in the future, so be sure to check back often. In the meantime, you may be able to find an account with a higher interest rate by comparing different options from different banks.

Where can I get 5 percent interest on my money?

The interest rate you earn on your deposited funds will depend on the type of account you choose. For example, a high yield savings account may offer an interest rate of 0.50%. To get a higher interest rate, you may need to choose a different type of account, such as a fixed annuity. Be sure to compare different options before choosing an account.

Where do you put your savings in 2022?

This is a difficult question to answer, as there are many different options available. It depends on your unique financial needs and goals. Some people may choose to put their savings in a high yield savings account, while others may choose a different type of account, like an annuity. Be sure to compare different options before making a decision.

Can you withdraw money from a high yield savings account?

Yes, you can typically withdraw money from a high yield savings account at any time. However, some accounts may have restrictions on how often you can make withdrawals. Be sure to check the terms and conditions of your chosen account before making any withdrawals.

How much should I have in savings at 30?

How much you should have in savings at age 30 depends on your unique financial situation. Some experts recommend having enough saved to cover three to six months of expenses, while others recommend saving 15% of your income.

Does opening a savings account affect credit score?

No, opening a savings account will not affect your credit score. However, if you open a new account and make any withdrawals or deposits, this could impact your credit score. Be sure to check with your bank or financial institution for more information.

When is the best time to open a high yield savings account?

There is no one-size-fits-all answer to this question. Some people may choose to open an account when they first start saving, while others may wait until they have more money saved up. Be sure to consider your own situation before making a decision.

Which savings account will earn you the least money?

Traditional savings account at a brick-and-mortar bank will likely earn you the least amount of money. Online banks often offer higher interest rates than brick and mortar banks. Credit unions also tend to offer higher interest rates than banks.

How much interest does a savings account earn?

The interest rate on a savings account varies depending on the bank and type of account. However, the average interest rate for a savings account is around 0.06%.

What is an IRA savings account?

An IRA savings account is a type of retirement account that allows you to save money for retirement. With an IRA, you can contribute up to $6000 per year. The money in your IRA grows tax-deferred, meaning you don’t have to pay taxes on it until you withdraw the money in retirement. There are two types of IRAs, traditional and Roth. With a traditional IRA, you get a tax deduction for your contributions. With a Roth IRA, you don’t get a tax deduction for your contributions, but you can withdraw the money tax-free in retirement.

How do I close a savings account?

To close a savings account, you will need to contact your bank or credit union and request that the account be closed. You may need to provide identification and sign a form authorizing the closure of the account. Once the account is closed, you will no longer be able to access the funds in the account. If you have any outstanding checks, you will need to make sure they are paid before you close the account. Once the account is closed, you will receive a check for any remaining balance in the account.

What’s the difference between a savings account and a health savings account?

A savings account is a type of bank account where you can deposit money and earn interest on the balance. A health savings account (HSA) is a type of savings account that can be used to pay for medical expenses. HSAs are only available to people who have high-deductible health insurance plans. Money contributed to an HSA is not taxed, and the money in the account can be used tax-free to pay for qualified medical expenses.

What’s the difference between a money market account and a savings account?

A money market account is a type of savings account that typically has higher interest rates and requires a higher minimum balance than a traditional savings account. Money market accounts also usually have greater restrictions on withdrawals than savings accounts.

How much money should I have in my savings account?

There is no single answer to this question as it depends on your individual financial situation. However, most experts recommend having at least three to six months of living expenses saved in an emergency fund. This will help ensure that you have enough money to cover unexpected costs, such as a job loss or medical bills. If you’re able to save more than this, you can consider investing some of the money in a longer-term savings goal, such as retirement.

How is the interest taxed on a savings account?

The interest that you earn on a savings account is taxed at your marginal tax rate. This means that if you are in the 25% tax bracket, you will owe 25% in taxes on the interest that you earn. However, there are some special rules for certain types of savings accounts, such as Roth IRAs and HSAs. With these accounts, the money that you contribute is not taxed, and the interest that you earn is not taxed.

What does FDIC stand for?

The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects depositors from the loss of their deposits in the event of a bank failure. FDIC insurance is available on savings accounts, checking accounts, and money market deposit accounts at banks and credit unions that are FDIC-insured.

What happens to my money if a bank is robbed?

If a bank is robbed, the money in your account is protected. The FDIC insures deposits up to $250,000 per account holder. This means that if a bank is robbed and you have an account with a balance of $250,000 or less, the FDIC will reimburse you for any money that is stolen.

What is the difference between a 529 savings account and a traditional savings account?

A 529 savings account is a type of account that is specifically for saving for college. The money in the account can be used tax-free to pay for qualified education expenses. Traditional savings accounts can be used for any purpose, but the money in the account is subject to taxes.

Do I have to pay a monthly fee?

Some banks and credit unions charge monthly fees for savings accounts. This fee is typically waived if you maintain a minimum balance in the account.

Is there a minimum balance associated with opening an account?

Yes, some banks and credit unions require a minimum balance to open a savings account. This minimum balance may be waived if you agree to set up a direct deposit or maintain a certain balance in the account.

What is the difference between savings account at the bank and a credit union?

There are a few key differences between savings accounts at banks and credit unions. First, credit unions are typically smaller than banks, and they are owned by their members. This means that credit unions often offer higher interest rates on savings accounts. Second, credit unions typically have fewer monthly fees than banks. Finally, credit unions may require you to become a member in order to open an account.

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

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on 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.

The Annuity Expert is an online insurance agency servicing consumers across the United States. 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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