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Today’s interest rate environment can be a big challenge for borrowers. After all, the same mortgage loans that had sub-3% interest rates in 2021 and 2022 now have rates that are over two times higher. And, other types of lending products, like credit cards and personal loans, both carry higher rates than they did in recent years. Considering that all it takes is a slight rate increase to result in much higher interest charges, the current landscape means borrowing is now a lot more expensive than it was a couple of years ago.
There are some upsides to today’s elevated rates, though. For example, if you’re a saver, higher interest rates mean there’s an opportunity to earn more interest than normal on your money. And, while you have a couple of ways to do that, including opening a certificate of deposit (CD)account, one of the most flexible options is a high-yield savings account.
That’s because, unlike CDs, you don’t have to leave your money in the account for a specified term. You can withdraw what you need at any point. And, while traditional savings accounts currently offer an average rate of just 0.46%, many high-yield savings accounts offer rates that are 10 times higher than that average right now. And, some of the best high-yield savings accounts offer rates that are even higher than that, like the 18 accounts outlined below.
Compare your best savings account options online today.
18 savings accounts to open for May (up to 5.55% APY)
If you’re looking for the best savings account rate available right now, the following accounts may be worth a look:
My Banking Direct — 5.55% APY: This account comes with a $500 minimum opening deposit requirement. There is a $1 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Poppy Bank — 5.50% APY: This account comes with a $1,000 minimum opening deposit requirement. There is a $1,00 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account, but it does charge a $5 fee for paper statements and excessive transfers.Ivy Bank — 5.30% APY: This account comes with a $2,500 minimum opening deposit requirement. There is a $2,500 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account, but it does charge an outbound wire fee of $25.CloudBank 24/7 — 5.26% APY: This account comes with a $1 minimum opening deposit requirement. There is a $1 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.UFB Direct — 5.25% APY: This account comes with a $500 minimum opening deposit requirement. There is a $1 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Newtek Bank — 5.25% APY: This account comes with a $0 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Evergreen Bank Group — 5.25% APY: This account comes with a $100 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account, but there is a $15 fee for inbound wire transfers and a $30 fee for outbound wire transfers.Newtek Bank — 5.25% APY: This account comes with a $0 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.UFB Direct — 5.25% APY: This account comes with a $0 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account, but it does charge a $5 fee for paper statements, a $10 fee for excessive transfers and a $35 fee for outgoing wire transfers.Western Alliance Bank — 5.24% APY: This account comes with a $1 minimum opening deposit requirement. There is a $1 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.RBMAX — 5.15% APY: This account comes with a $1 minimum opening deposit requirement. There is a $1 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Bread Savings — 5.15% APY: This account comes with a $10 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate (and a maximum balance of $250,000 to earn the APY). There are no monthly service charges attached to this account, but it does charge a $4 fee for paper statements.Popular Direct — 5.13% APY: This account comes with a $100 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Elevault — 5.13% APY: This account comes with a $0 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate (and a maximum balance of $50,000 to earn the APY). There are no monthly service charges attached to this account.Customers Bank — 5.11% APY: This account comes with a $1 minimum opening deposit requirement. There is a $1 minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Bask Bank — 5.10% APY: This account comes with a $0 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.BMO Alto — 5.10% APY: This account comes with a $0 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.Shoreham Bank — 5.10% APY: This account comes with a $25,000 minimum opening deposit requirement. There is no minimum balance required to earn the advertised rate. There are no monthly service charges attached to this account.
Find out how much more you could be earning on your savings here.
The bottom line
Earning a great rate on your savings is simple in today’s elevated rate environment, but if you want to earn the best rates available, the accounts outlined above are a smart place to start. And, many of these accounts have low or no minimum deposit and balance requirements, so you don’t need to have a large deposit on hand to start earning more interest now.
Angelica Leicht is senior editor for Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
