Top High-Yield Savings Accounts in 2023: Rates Up to 5.20% APY – July Update

As of July 2023, the top high-yield savings account offers an unprecedented 5.20% APY, marking the highest rate in nearly 16 years.

This rate has recently increased from 5.17% APY, which held the lead for over three weeks, giving savers a remarkable opportunity to grow their money faster than ever.

Moreover, the number of savings accounts offering 5.00% APY or more has expanded significantly, rising from 10 options in late June to 14 currently. This surge provides consumers with a broader selection to find the perfect account that fits their needs.

The surge in savings rates is largely driven by the Federal Reserve’s aggressive interest rate hikes throughout 2022 and 2023 aimed at curbing inflation. With 10 rate increases totaling 5.00%, savings account yields have soared to levels not seen since 2007.

Top 5 High-Yield Savings Accounts by APY

Pro Tip

Shopping around pays off! While the highest-yielding accounts may require a minimum balance of $2,500, many other competitive options have no ongoing balance requirements, making it easier for everyone to benefit.

Why Opening a High-Yield Savings Account Is a Smart Financial Move

By transferring your savings into a high-yield account, you can earn more than 12 times the national average rate of 0.42% APY. If your current bank is a large national institution, chances are their savings rates are near zero, so seeking out a dedicated high-yield account is a savvy choice.

Managing funds across multiple banks is simpler than ever thanks to online banking, which allows quick and easy transfers. Although transfers may take 1-3 days, maintaining some liquidity in your primary checking account ensures you have immediate access to funds when needed.

Many of the best-paying savings accounts are offered by online banks or online divisions of traditional banks. Rest assured, accounts displaying the "FDIC member" badge provide federal insurance coverage up to $250,000 per depositor, per bank, safeguarding your deposits.

Additional Tip

Consider money market accounts as another excellent option. They often provide competitive rates with the added benefit of check-writing privileges, combining flexibility with strong returns. Our daily rankings make it easy to compare the best money market rates available.

What’s Next for Savings Account Rates?

Savings account rates closely mirror the Federal Reserve’s benchmark federal funds rate. Since March 2022, the Fed has raised rates 10 times, totaling a 5.00% increase to combat inflation, which peaked at a 40-year high in June 2022.

Currently, the leading savings account rate of 5.20% APY is the highest since the Fed’s rate hikes began and the highest since 2007.

Although the Fed paused rate increases in its June 14 meeting, most members anticipate at least two more hikes before the end of 2023. Financial markets currently price in a 0.25% hike expected in late July.

Recent inflation data showing a drop to 3.0% year-over-year has tempered expectations, with many analysts predicting that the July hike may be the last for the year. However, Fed decisions depend on evolving economic conditions, so future moves remain uncertain.

Any additional rate hikes would likely raise savings account yields incrementally, benefiting savers.

Important Reminder

Savings and money market account rates are variable and can change without notice. While rates are high now and expected to stay elevated in the near term, they may decline when the Fed eventually lowers rates.

Consider Certificates of Deposit (CDs) for Higher Returns

If you can set aside funds for months or years, CDs offer a chance to lock in attractive rates—up to 4.50% APY for terms extending into 2025. This can protect your earnings from future rate drops.

Keep in mind that early withdrawals from CDs typically incur penalties, so plan your investment duration carefully.

Comparing Top Savings and CD Rates to National Averages

Best CD rates for May 2025 currently reach up to 4.50%, significantly outperforming average savings rates.

How We Collect Rate Data

Every business day, Investopedia monitors nearly 100 federally insured banks and credit unions nationwide to identify the highest-paying savings accounts. To qualify, institutions must be FDIC or NCUA insured, offer accounts with initial deposits no greater than $25,000, and be available in at least 40 states.

Credit unions requiring donations over $40 for membership are excluded. For detailed criteria and methodology, please refer to our full guide on selecting the best high-yield savings accounts.

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