The Best High Yield Savings Accounts for December 2022

Dec 1, 2022

5

min read

H

igh-yield savings accounts offer higher interest rates than regular savings accounts. Thus, they are best for maintaining emergency funds or helping you reach your financial goals faster. With economic uncertainty looming, high-yield savings accounts are safer investments, and with the Fed's interest rate hike, you can receive a higher return on your savings.

According to the FDIC, the national average APY for saving accounts is 0.24%. However, most high-yield savings accounts pay out more than 3% APY on savings accounts. Generally, online banks' interest rates are higher than brick-and-mortar banks, but make sure the bank is FDIC insured to secure your deposit.

With many options available, you might be confused about where to keep your hard-earned money. Don't worry; we have compiled a list of the best high-yield saving accounts for December 2022. So, let's dive in!

At a glance

Bank	APR	Initial Deposit	Minimum Balance	Monthly Fees
CFG Bank	3.85%	$1,000	$1,000	None if minimum balance is maintained
UFB Direct	3.83%	x	x	x
Brio Direct	3.75%	$500	x	x
TAB Bank	3.64%	x	$1	x
First Foundation Bank	3.60%	$1,000	x	x
My Banking Direct	3.55%	$500	$1	x
Vio Bank	3.52%	$100	x	x
Bread Savings	3.50%	$100	x	x
Upgrade	3.50%	$1,000	x	x
Lending Club	3.25%	$100	x	x
Sallie Mae Bank	3.10%	x	x	x
Ally Bank	3.00%	x	x	x
Capital One	3.00%	x	x	x

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CFG Bank

CFG Bank currently offers the highest savings account yield with an APY of 3.85%. It requires a $1,000 initial deposit to open and maintain the account. Though the bank markets the account as a high-yield money market account, there are no check-writing privileges. Also, the daily external transfer limit is capped at $5,000 and must be at most $30,000 in a 30-day rolling period.

Pros

High APR
No monthly fees if a minimum balance of $1,000 is maintained
No out-of-network ATM fees

Cons

Transaction limits on certain types of withdrawals and transfers
External transfer limit to a maximum of $30,000 in a 30-day rolling period
No checking account

UFB Direct

UFB Direct is an online division of Axos Bank, offering a high 3.83% APY, no maintenance fees, and minimum balance requirements. It also provides mobile deposit by scanning photos of your endorsed check's front and back sides. You also get a free complimentary ATM card and digital tools such as mobile banking, SMS banking, and online banking for seamless remote banking.

Pros

High APR
No maintenance or service fee
No initial deposit required
No minimum deposit required
Free ATM card
Free transfer between the direct deposit accounts

Cons

No checking account
No physical branches available

Brio Direct

Brio Direct is an online subsidiary of Webster Bank, and its product Savings Plus offers 3.75% APY with a $500 opening balance. There are no monthly maintenance fees and free access to paperless statements. However, you need $5 for paper statements.

Pros

High APR
No monthly fees
No minimum balance
Free paperless statement

Cons

Limited withdrawals
A withdrawal fee of $10 if you withdraw more than the limit
Charge of $5 for paper statements

TAB Bank

TAB Bank has a high-yield saving account with an APY of 3.64% and no minimum opening balance. It requires a minimum balance of $1 to maintain the account and has no maintenance fees. The deposits are FDIC insured and have no balance caps.

Pros

Competitive APR
No monthly fees
No opening minimum balance
Online and mobile banking access
FDIC insured

Cons

No ATM card
Paper statement charge of $5
Limits on transfers and withdrawals

First Foundation Bank

First Foundation Bank offers 3.60% APY with no monthly fee. It requires $1000 as an initial deposit, but there is no minimum balance to maintain the account. There are no service charges or transaction fees for external or internal transfers. It also offers a checking account, and an ATM card is available on request.

Pros

No monthly fees
No minimum balance
No transaction fees
ATM fee reimbursement

Cons

An initial deposit of $1000
No free ATM
Limited branches

My Banking Direct

My Banking Direct offers 3.55% APY with no monthly fee. The minimum initial deposit is $500, which requires at least $1 as the minimum balance to earn the interest. The interest is accrued daily and is credited to the account every month. The deposits are FDIC insured to the full extent permissible by the law.

Pros

No monthly fee
Only a $1 minimum balance required
FDIC insured deposits
Checking account available

Cons

A minimum initial deposit of $500
No ATM card

Vio Bank

Vio Bank's Cornerstone Money Market Saving Account offers 3.52% APY with no monthly fee and minimum balance. The minimum initial deposit is $100, and the deposits are FDIC-insured. The deposits are insured up to $250,000, and you can easily access your fund whenever needed. You can also set up an automatic savings plan by establishing auto transfers to your account. The interest is compounded daily and is credited to your account monthly. However, you only get six free withdrawals per monthly cycle.

Pros

No monthly fee
No minimum balance required
FDIC insured
Mobile check deposit

Cons

An initial deposit of $100
No checking account
No ATM card
No physical branch
$5 monthly fee for paper statements
Limited withdrawal

Bread Savings

Bread Savings offers 3.50% APY with a minimum opening balance of $100.The minimum deposit is $0, whereas the maximum is $1 million per account and a $10 million limit per customer. The deposits are FDIC-insured, and the interest is accrued and compounded daily. There are no hidden fees, and you can quickly deposit through check capture and ACH transfer. However, you will be charged $25 per outgoing wire transfer, $15 per official check request, and $5 per paper statement request.

Pros

No minimum balance
FDIC insured
No hidden fees
Free online statements
Free ACH transfers and incoming wire transfers
Unlimited deposits via mobile check capture and ACH transfer

Cons

Opening balance of $100 required
$25 per outgoing wire transfer
$5 per paper statement request
No ATM card and checking account

Upgrade

Upgrade's premier savings offers 3.50% APY with a minimum opening balance of $1000. It has no monthly account fees or transfer fees. Also, there are no restrictions on the transfer and withdrawals in the account. Since Upgrade is an online fintech company, it has partnered with Cross river bank to offer FDIC-insured deposits.

Pros

No monthly account fees
No transfer fee
FDIC insured deposit
Checking account available

Cons

An initial deposit of $1000
No free ATM network
Cash deposits are not accepted

Lending Club

Lending Club offers FDIC-insured deposits, high APR, and freedom from monthly service fees in its high-yield saving account. It offers 3.25% APY with a minimum opening deposit of $100. Though it requires an initial opening deposit, no minimum balance is required to maintain the account. The deposits are FDIC-insured up to the maximum amount available- $250,000 per depositor for each ownership category. It also offers free ATM cards and free internal and external transfers.

Pros

Competitive APR
No minimum balance required
FDIC insured to the maximum amount available
Free ATM card
No monthly fees
Free internal and external bank transfer

Cons

No physical branches
An initial minimum opening deposit of $100 required
Does not have a saving option for children under 18 years old

Also read: Expense Management And Investing Guide For Teenagers

Sallie Mae Bank

Though Sallie Mae Bank is best known for its student loans, it also offers competitive rates and features in its high-yield saving account. It offers 3.10% APY with no minimum balance and no monthly maintenance fees. The deposits are FDIC insured and can be easily managed through online and mobile banking. It also offers free internal and external transfers to the account.

Pros

No minimum balance
No monthly maintenance fee
FDIC-insured deposit
Free transfer

Cons

No checking account
No ATM access

Ally Bank

Ally Bank is well-known for its excellent customer service, competitive rates, and wide range of banking services. It offers a 3% APR with no monthly fees and minimum monthly balance requirements. The deposits are insured by the FDIC to the maximum the law allows. Along with the saving account, you get tools to organize your savings and analyze any checking account for save to save money. However, you can only withdraw six times per statement cycle with the account.

Pros

No minimum opening balance
No monthly maintenance fee
FDIC-insured deposit
Online tools for organizing the account
Free incoming transfers (domestic and international)
Free copies of online statements

Cons

Limited withdrawals
$20 charge for outgoing domestic wires

Capital One

Capital One's 360 performance savings account offers 3% APR with no minimum opening balance, monthly fees, and maintenance fee. You can create multiple accounts without any restrictions and easily transfer money between linked Capital One accounts or external bank accounts. You can also enable an automatic savings plan to keep your online saving account growing with automatic transfers. The deposit is FDIC-insured up to the allowable limits.

Pros

No initial deposit
No monthly fees
FDIC insured deposit
Mobile check deposit
Multiple accounts
Automatic saving plan
Easy account transfer

Cons

No ATM
No check-writing privileges

Conclusion

With economic uncertainty around the corner, saving accounts are the best place to put your hard-earned money. With the Fed's interest rate increase, the interest rate on savings accounts has also increased. Currently, CFG bank provides the highest APR in high-yield saving accounts, with an APR of 3.85%. But, apart from APR, you should also consider the minimum initial deposit required, balance required, FDIC insurance, and fees while choosing a high-yield savings account. Selecting the best high-yield account is crucial to ensure that your hard-earned money works hard for you.

Also read : 2022 Income Investment And Savings Options