10 Best High-Yield Savings Accounts for 2023

by Fiona Smith
Updated February 17, 2023

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Looking for the best high-yield savings accounts for 2023?

Then, you’ve come to the right place.

Here they are.

Best Online High-Yield Savings Account

MMW Rating

 4.8/5

CIT Bank

Get a competitive rate with a Savings Connect account and the benefits of easy access to your funds.

Open Account

Member FDIC

Best Savings Account Rates 2023

Institution	APY
Western Alliance Bank	4.45%
The State Exchange Bank	4.35%
Adda Bank	4.25%
CIT Bank	4.05%
Liberty Savings Bank	4%

High-Yield Savings Account Rates Updated on: 2/17/2023

Why Choose a High-Yield Savings Account Over a Regular Bank Savings Account?

A high-yield savings account such as CIT Bank typically has a higher APY rate than a regular savings account.

The national average APY for a regular bank account is 0.06% APY versus the average APY for a high-yield savings account, which can vary from 1.3% to 1.51%.

Pro Tip: High-yield savings account interest rates often fluctuate based on the market. For example, in 2018 and 2019, high yield savings account interest rates typically ranged above 1%. Now, in 2020, they fell beneath the 0.7% marker.

What is a High-Yield Savings Account?

Other than that favorable feature, everything about a high-yield savings account is EXACTLY the same as a regular bank savings account.

High-Yield Savings Account Defined: A high-yield savings account is a type of savings account that has a much higher APY rate than a regular savings account.

It’s a no-brainer and should not cost you any money (if there are fees, you’re looking at the wrong high yielding online savings account institution).

Remember to look for the following defining features when applying for a high yield savings account:

Feature	Description
APY	Your interest rate on your deposit. Although the highest interest rate is always the goal - beware that some banks use their high-interest rates to lure you in and then pay higher bank fees. Always look at the big picture.
Bank Fee	Read the fine print. Bank fees include account opening fees, transaction fees or account maintenance fees. There are high-yield savings accounts out there with no bank fees.
Minimum Deposit Requirements	How much do you need to open your account? Read the fine print. Sometimes smaller deposits may lead to lower interest rates, increased bank fees, etc. Ideally, your savings account will not have minimum deposit requirements.

What’s the Best High-Yield Savings Account for 2023?

Arguably, I have seen many reference CIT Bank as one of the top – if not the top – savings account for 2023.

How Much Interest Will I Earn With a $1,000 Deposit?

Let’s take a look at these parameters:

Deposit: $1,000
Interest rate: 1.51%

Then, you should expect to earn:

Amount earned: $15.10
Time Period: 12 months

Compare that $15 with the mere 60 cents you would earn from a regular bank savings account yielding only 0.06%.

All you have to do is switch to an online high-yield savings account. It’s that simple.

When Should I Use a High-Yield Savings Account?

In short: Always.

Especially when you use the high-yield savings account as your emergency savings fund.

Why?

An emergency savings fund is designed to be used in the case of an emergency – so your cash will [presumably] sit in the account for a while.

"Why not have your cash earn some interest while it's waiting to be withdrawn for an unexpected expense?"

Ideally, the money you set aside in an emergency savings fund should be:

Cash
Readily accessibly
Only used in the case of an emergency

"A high-yield savings account is the perfect alibi."

This account will add more money to your pockets if you literally deposit your emergency savings funds and just let them grow.

Your money will be working for you – and at a higher return.

What is an Emergency Savings Fund?

You only use an emergency savings fund in the case of an emergency (and no, buying a new car or new outfit does not count as an emergency).

Emergency Savings Fund Defined: An emergency fund is a separate savings account where you earn a high-interest rate on your money. You should always be able to readily access your cash in the case of an emergency.

Do you have a savings account? What is your rate? Let me know in the comments below.

Fiona Smith

Fiona Smith is the founder and CEO of The Millennial Money Woman. She has spent 10+ years studying finance, with the last 7 as a wealth and investment advisor. She has worked with clients with a net worth of up to $100M and holds her Master of Science Degree in Personal Financial Planning. She has also co-founded a local non-profit community teaching financial literacy and her work is featured on Forbes, FinCon, and MSN.