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Savings rates have been hot since the early days of 2022. As the Fed steadily raised the federal funds rate 11 times to combat high inflation, borrowing money with a credit card or loan became more expensive. But banks also raised rates on consumer products like savings accounts and certificates of deposit.
It’s not difficult to find a high-yield savings account with an annual percentage yield over 5% these days. But what can be difficult is finding a HYSA that aligns with all your financial needs. Enter My Banking Direct.
We like that this online bank doesn’t have minimum balance requirements or charge monthly maintenance fees. It also has the highest rate available. The only downside is that you need $500 to get started.
What’s the highest savings account rate right now?
My Banking Direct, an online bank that’s a subsidiary of New York Community Bank, offers the highest savings rate available right now at 5.35% APY. You need at least $500 to get started, but My Banking Direct doesn’t charge any monthly maintenance fees.
If you don’t have $500 to put away, you can still earn a high interest rate with a bank that requires a much smaller initial deposit. Some banks don’t have any minimum balance requirements. Here’s how My Banking Direct’s high-yield savings account compares to a few other options we like that have both a competitive APY and a $0 initial minimum deposit requirement.
| Bank | APY | Minimum deposit to open |
| My Banking Direct | 5.35% | $500 |
| TAB Bank | 5.02% | $0 |
| Newtek Bank | 5.25% | $0 |
| UFB Direct | 5.15% | $0 |
| Synchrony Bank | 4.75% | $0 |
How much can you earn in one year with today’s top savings accounts if you deposit $500?
Here’s how much you’ll earn with the top high-yield savings accounts listed above, assuming you deposit $500 and don’t contribute additional deposits throughout the year. We’ve also included earnings if you deposit $500 and then contribute an extra $25 a month.
Keep in mind that savings accounts earn a variable interest rate, so the APY can change anytime. Once the Fed initiates rate cuts -- which many experts expect in the coming months -- your rate could change.
You’ll stand to earn more if you set your savings on autopilot. Set up automatic recurring transfers from your checking account on a weekly, monthly or quarterly basis that works for your finances. All you have to do is find a figure that works well for you and let compound interest do the rest.
| Bank | APY | Interest earned after 1 year (without monthly contributions) | Balance after 1 year (without monthly contributions) | Balance after 1 year with a monthly deposit of $25 |
| My Banking Direct | 5.35% | $27.43 | $527.42 | $834.88 |
| TAB Bank | 5.27% | $25.69 | $525.69 | $832.69 |
| Newtek Bank | 5.25% | $26.89 | $526.89 | $834.22 |
| UFB Direct | 5.25% | $26.37 | $526.37 | $833.55 |
| Synchrony Bank | 4.75% | $24.27 | $524.27 | $830.89 |
What to consider when choosing a high-yield savings account
High-yield savings accounts usually have higher APYs than traditional savings accounts, some of which offer as little as 0.01% APY. However, there are other factors you should consider when choosing the right account for your financial goals, including mandatory minimum deposits, transaction fees, accessibility and more. Here’s what you should look out for:
- Minimum deposit requirements: Some high-yield savings accounts require a minimum initial deposit to open an account, but that’s not always the case. Plenty of the top high-yield savings accounts we track at CNET have a $0 minimum deposit requirement. But some require amounts anywhere from $25 to $500.
- Minimum balance requirements: Some high-yield savings accounts require that you meet a minimum balance requirement based on a daily, monthly or average basis. Dropping below a certain threshold could incur fees, so make sure you can meet the requirement should there be one.
- Fees: Look out for accounts that charge fees for monthly maintenance, withdrawals or paper statements. Unnecessary fees can eat into your interest earnings, especially when plenty of banks don’t have any.
- ATM access: Not every bank offers cash deposits and withdrawals. If you regularly deposit or withdraw cash, look for banks that use an ATM network or offer reimbursement for out-of-network ATM fees.
- Branch access: Some of the best high-yield savings accounts are at online banks that don’t have physical branches. If in-person banking is important to you, look for a bank with physical branches.
- Withdrawal limits: Some banks charge an excessive withdrawal fee if you make more than six withdrawals per statement cycle. Consider how many monthly withdrawals you’ll need to make before committing to an account with a strict withdrawal policy.
- Federal deposit insurance: Look for high-yield savings accounts at banks insured by the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration. Accounts at these institutions are protected for up to $250,000 per person, per account.
- Customer service: Read online customer service reviews and consider customer satisfaction ratings to get a sense of what it will be like to work with the bank.