Best Online Savings Accounts (High-Yield) Of 2023
A high-yield savings account offers a competitive annual percentage yield (APY) for your savings. But shopping around for the right online high-yield account can feel overwhelming because of the countless options out there. To make your decision process easier, we’ve compiled a list of some of the most popular FDIC-insured online banks for savings accounts in 2023.
Best Online Savings Accounts of 2023
SoFi
(4.6% APY as of November 2023)
Why We Picked It:
We picked SoFi because along with a high interest rate on their savings and checking account, this account offers many perks including early paydays, up to 15% cash back, and excellent customer support with 24/7 live chat.
SoFi’s app also comes with helpful digital resources such as a budget planner, spending insights, and free credit score monitoring.
Pros:
✅ No fees for overdrafts or account maintenance
✅ Get paid up to two days early with direct deposit
✅ Extensive ATM network
✅ Cashback at select retailers
✅ No minimum balance to open
✅ No withdrawal on transfer limits
Cons:
❌ No branch locations
❌ No banking options aside from checking and savings
❌ No standalone checking or savings accounts
CITBank
(5.05% APY as of November 2023)
Why We Picked It:
CIT’s Platinum Savings account pays 5.05% APY on balances of $5,000 or more. CIT’s high-interest rate may come with a barrier to entry, but for those who can keep their balance over $5,000, CIT’s 5.05% APY beats most other high-yield savings accounts out there.
Pros:
✅ Competitive APYs
✅ No monthly fees
✅ Small minimum deposit requirements
Cons:
❌ No physical locations
❌ No checkbooks for eChecking accounts
❌ No IRAs, auto loans or credit cards
Ally
(4.25% APY as of November 2023)
Why We Picked It:
If you're looking to do all your banking in one place, Ally may be a great option for you. Savings account holders can also enjoy the benefits of checking accounts for everyday spending.
Ally is also reputable for their easy-to-use mobile app and 24/7 live customer service that's available over the phone, online chat, or mobile app.
Pros:
✅ Strong APY
✅ No minimum balance or deposit
✅ No monthly fees
✅ Access to over 43,000 free Allpoint® ATMs
✅ Option to add a checking account with ATM access
Cons:
❌ Higher APYs offered elsewhere
❌ $10 excessive transaction fee
Discover
(4.35% APY as of November 2023)
Why We Picked It:
Many banks charge penalties or hidden fees. Thankfully, with Discover, you don’t have to worry about fees for insufficient funds, account closure, bank checks, excessive withdrawals, and many other transactions that other banks might charge for.
Through Discover’s highly-rated mobile app, customers can deposit checks, transfer money, and access a host of other features. The Discover App also works on a variety of wearable devices, so you can always stay in touch with your balance and account activity.
Pros:
✅ Charges very few fees
✅ Competitive APYs and cash-back earnings
✅ Highly rated mobile app
✅ Extensive ATM network
✅ 24/7 customer service
✅ No fees for overdrafts or account maintenance
Cons:
❌ Higher rates are available from other banks and credit unions
❌ Doesn’t pay interest on checking account
Synchrony
(4.75% APY as of November 2023)
Why We Picked It:
What makes this account stand in addition to its strong APY, is its convenient withdrawal options. Synchrony Bank offers an optional ATM card to savings account holders. You can access your money by ATM, wire transfer, or through electronic transfer to or from accounts you have at other banks.
Synchrony Bank’s customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go.
Pros:
✅ Strong APY
✅ No minimum balance or deposit
✅ No monthly fees
✅ Easy ATM access
✅ Travel discounts
Cons:
❌ No option to add a checking account
❌ No physical branch locations
Methodology
To put together this list of top options for your online savings account, we gathered our knowledge from public information provided by each institution. We looked at a variety of factors, including fees, APY, branch and ATM access, and customer service. We also researched their customer reviews and considered their reputation.
How to Find The Best Savings Account?
The best way to find the best online savings account is to research several lists of top online savings accounts according to reputable sources in addition to our own such as NerdWallet, Forbes Advisor, Bank Rate, and more.
In your research process, consider the factors we discussed today including, APY, customer service, fees, branch access, customer service, and unique perks.
Why are Online Savings Accounts Better Than Traditional Ones?
Traditional banks offer low interest rates on savings accounts ranging anywhere from .01-.10%. Online banks often offer high-yield savings accounts and offer anywhere from 4-5% interest on your savings. Which is nearly 10x the national average.
The Bottom Line
Online bank accounts listed in this article are protected by the Federal Deposit Insurance Corporation (FDIC). The Federal Deposit Insurance Corporation plays an essential factor in providing stability and confidence in individual institutions.
When researching top online banks, be sure to consider the pros and cons we listed to determine which institution fits your individual needs.
