10 of the best high-interest savings accounts for December 2023 (up to 6.17%)

“Cash, properly allocated in a higher yielding deposit account, has finally gotten a better return, where it might have been a forgotten financial stepchild in years past,” says Bankrate Washington bureau chief Mark Hamrick.

Here’s why rates have risen in the past year, how to pick the right savings account for you, and what to know about the high-yield savings accounts with the best APY in December 2023 and our top finds below.

Why have rates gone up so much this year?

As the Federal Reserve continued to raise interest rates this year in its effort to tame rising inflation, so too have banks in order to acquire and retain deposits, says Daniel Carey, senior vice president, head of finance and accounting at Cambridge Savings Bank.

“Banks have utilized high-yield savings and CD accounts to compete against each other for new customers,” Carey says, adding that “with digital banking now at the forefront, high-yield savings accounts are a very popular product. This is due to their ease of use through the digital movement of money, and lack of restrictions on when you can withdraw your money compared to a CD, which will have a penalty if you withdraw before the term ends.” (See some of the highest-paying savings accounts you can get here.)

Carey adds that although the central bank hasn’t increased the benchmark funds rate since October — when it was increased to 5.25%-5.5% — financial institutions often take some time to adjust their offerings. “When the Fed raises rates, it typically takes six months for the change to make its way through the economy,” Carey says. “When rates were first raised early last year that process began and then accelerated when the larger rate increases from the summer of 2022 took hold in 2023.” 

To be sure, the average savings account has seen rates more than double just one year ago. Though significantly less than the leading account offerings, the average national deposit rate topped 0.46% APY as of Nov. 20, according to the Federal Deposit Insurance Corporation. That’s up from just 0.24% one year ago, data show.

How to decide what’s best for your savings? 

Now with dozens of savings accounts offering rates well in excess of the national average, it all comes down to finding the right one that aligns with your own financial goals, Carey says.

“Consumers can see top rates by visiting websites that aggregate from many different financial institutions,” he explains, adding that “there is no minimum rate to look for, but it should be one that is competitive, and consumers should consider aspects beyond rates, like the product terms, and how easy it is to work with the financial institution.”

Nevertheless, Hamrick says considering the competitive nature of banks and credit unions today, potential depositors shouldn’t accept anything too low. “Higher is better, and yields of 4% to 5% shouldn’t be too hard to locate,” he says. (See some of the highest-paying savings accounts you can get here.)

10 of the best-paying high-yield savings accounts of December 2023

Here are the 10 best deposit rates for high-yield savings accounts in December 2023. All of these accounts are protected by either the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), unless otherwise noted. It’s critical to read all of the fine print before opening an account to learn about any potential restrictions or hurdles. 

Boeing Employees’ Credit Union: 6.17% APY

Though BECU is again paying a generous 6.17% APY this month for a Member Advantage Savings account, this offer comes with a pretty sizable catch: it only applies to the first $500. Balances above that relatively low threshold earn a much lower rate of 0.50% APY. Another major restriction here is that members of this credit union must either live, work, worship or go to school in Washington state or other select counties in Oregon and Idaho. 

Digital Federal Credit Union: 6.17% APY

For a slightly higher maximum balance, DCU is also paying 6.17% APY, however this rate applies to the first $1,000 deposited in your account. Members also have to make a minimum deposit of $500 to get started. Any deposits that exceed $1,000 earn just 0.15% APY. You’ll also need to meet the membership requirements to join, which is only extended to those who live in select counties of Massachusetts or in a participating condominium community in New Hampshire. Members may also work for a select employer group or belong to a local participating organization.

Andrews Federal Credit Union: 5.75% APY

While this is among the best rates for a savings account this month, only account balances from $0.01 to $1,000 are eligible for the 5.75% APY. Those above that level, meanwhile, accrue interest between 0.07% and 5.61% APY. This offer expires on Dec. 31, so you’ll have to act relatively fast to get in at this rate. That said, only those who work for one of a dozen eligible employer groups based in Maryland, Washington D.C., Virginia or New Jersey need apply, as per the credit union’s membership requirements. However, if you are not employed by one of the listed groups here, Andrews FCU states that you can also qualify through the American Consumer Council. Join through the website and the credit union will also cover your membership fees.

Popular Direct: 5.40% APY

Opening this account comes with a relatively low $100 opening balance requirement. Meet that threshold and Popular Direct pays 5.40% APY on your savings and does not restrict with any deposit limits. Just maintain a $0.01 balance and you can start earning today. There are no monthly service fees; however shuttering the account within 180 days will incur a $25 early account closing fee.

BrioDirect: 5.35% APY

Deposit at least $5,000 and maintain a $25 balance at this high-yield savings account at BrioDirect, an online brand of Stamford, Connecticut-based Webster Bank, and you’re eligible for this rate of 5.35% APY. 

My Banking Direct: 5.35% APY

Bring at least $500 at this online service of Flagstar Bank N.A. and you’re eligible for opening a high-yield savings account and start earning a high 5.35% APY. There are no monthly fees and all balances greater than $1 earn the promoted interest rate after the initial $500 deposit.

Ivy Bank: 5.30% APY

Make the minimum $2,500 opening deposit and earn a high 5.30% APY on balances all the way up to $1 million with this high-yield savings account. That said, balances that do not meet that minimum opening deposit threshold earn just 0.05% APY. Transfers and withdrawals here are limited to six per calendar year.

Customers Bank: 5.30% APY

This savings account, along with others powered by Raisin, a savings account marketplace, is one of the least restrictive options for a high-yield savings account on the market today. That’s because you’ll only need $1 to start earning a high 5.30% APY. There’s also no balance restrictions and no monthly maintenance fees, so feel free to add as much cash you want to this account and still earn an industry-leading savings rate.

VyStar Credit Union: 5.29% APY

Much like the offer at Customers Bank, the rate at VyStar Credit Union is also fairly string free. Although originally founded 70 years ago to serve military service members and their financial needs, anyone can now have access thanks to its partnership with the Raisin platform. Just make the $1 opening balance requirement and start earning this 5.29% APY rate today. 

DR Bank: 5.29% APY

The highly competitive rate offered at DR Bank, a Connecticut state-chartered FDIC member bank also powered by Raisin, comes with little to no strings to qualify. Just open an account with a minimum of $1 starting deposit and you’re set for this 5.29% APY savings rate.