The Top Savings Accounts Available in November of 2022

Whether trying to save up for a rainy day or a down payment on a home. High-yield savings accounts offer a greater interest rate in exchange for the risk of losing access to your funds, and your savings will grow even faster, thanks to compound interest.

Compared to a standard savings account, a greater annual percentage yield (APY) allows your savings to accumulate interest faster. According to the Federal Deposit Insurance Corporation, the average annual percentage yield (APY) on savings accounts across the country is just 0.21%. (FDIC). That is approximately 18 times lower than the best savings accounts currently available.

The Varo Savings Account

Founded in 2015 in San Francisco, Varo Bank is an internet-only financial institution. The Varo Savings Account is a fantastic choice for those who want to save but don't want to go to a physical branch because it is a mobile national bank. In addition to a checking account, Varo provides savers with a 2.00% APY on their funds.

These accounts have no opening balance requirements and ongoing service costs. Varo is notable due to its progressive APY structure, which motivates you to save more. With this account, you can earn up to 5.00% APY by meeting monthly requirements and the 2.00% APY you'll always receive.

SoFi Checking and Savings Accounts

SoFi's checking and savings accounts stand out because of the generous welcome bonus you can earn once you begin receiving direct deposits. Rewards range from $50 to $300 based on direct deposits within a given 30-day period.

Earnings in the account are reliable as well. However, the highest interest rate of 3.00% APY is only available to those who want their funds deposited directly into their checking or savings accounts. It's only 1.20% APY if you still need to set up direct deposit.

With the included debit card, you can use your money at any more than 55,000 fee-free ATMs in the Allpoint® Network. Using a debit card to make purchases doesn't always come with perks, but you can earn as much as 15% back in cash at select stores.

Bask Bank Interest Savings Account

The Bask Bank Interest Savings Account may be suitable if you're interested in maximizing your interest earnings. Its annual percentage yield (APY) for savings accounts is 3.60 per cent.

In addition, frequent fliers can exchange their points for American Airlines AAdvantage miles. With the mileage savings account, you can earn 1.5 miles for dollars saved each year.

These miles are valid for travel on American Carriers and its more than 20 partner airlines. In this way, you won't have to worry about how to pay for your upcoming trip.

What Is A Savings Account, And How Does It Work?

Financial institutions like banks and credit unions typically provide savings accounts. Interest is paid on these federally guaranteed accounts, but the rates are often lower than those on other interest-bearing federally insured financial products like certificates of deposit (CDs).

A savings account's lower interest rate is offset by the account's increased accessibility, which can include up to six different withdrawals or transfers per statement cycle (and potentially more).

Who Qualifies For A Savings Account?

Having a savings account and an emergency fund is a good idea for most people. There are financial institutions that make it simple by letting customers open multiple savings accounts for various purposes.

The ideal method to save for retirement is to have a savings account that is part of a diversified portfolio that also includes certificates of deposit (CDs) for securing funds for extended periods.

Financial resources that you may require shortly but don't want to risk losing due to market fluctuations are the ideal candidates for a savings account.

What Are The Costs of Maintaining A Savings Account?

The bank may charge you a fee if you don't keep a certain amount in your savings account. However, there are savings accounts that either don't have a minimum balance requirement or have much lower requirements while still offering competitive annual percentage yields.

If the account's minimum balance is too high for your needs, look elsewhere for an account that offers a similar annual percentage yield but has no minimum balance restriction at all. To avoid having monthly fees cut into your interest earnings or principal, look for a savings account that doesn't charge any.

Be wary of any savings account that charges you to close it within the first three to six months or of any ATM fees incurred if you use an ATM outside of the network.