Best High Yield Interest Savings Accounts January 2023

Best High Yield Interest Savings Accounts January 2023

Here are the best 50+ high yield interest bank accounts I found in January 2023.

Bank interest yields are getting decent again with many offering 4%+ interest rate across money market, savings, and checking accounts.

Since the Federal Reserve has been hiking their Fed Funds Rate (now in the current range of 4.25% to 4.5%) that’s encouraged banks to give consumers better interest rates.

It’s good for savers in banks, but not so good for those buying homes with mortgages.

I’ve found high yield accounts that range from as low as 2.3% to as high as 5% in annual percentage yield (APY).

None of this content is sponsored, what I’m sharing is just from the research I’ve gathered from various sites like Investopedia, Deposit Accounts, Best Cash Cow, Nerdwallet, and more.

What I like to look for in any high yield bank account is the least amount of fees and strings attached. Ideally I like to make sure there’s no minimums to open or maintain the account, no monthly fees, no overdraft fees, and free ATM access.

With the advent of online banking and mobile banking, there’s a lot less of a need to have brick and mortar banks. But there’s always some fine print you’re going to want to pay close attention to with any bank account offering.

Another important thing you should definitely confirm with any bank or credit union you open an account with, is to make sure it’s FDIC-insured or covered by the US Government’s Federal Deposit Insurance Corporation. This means your money is secure up to $250,000 and this helps to avoid bank runs like we saw during the Great Depression of the 1930s or the crypto runs in 2022.

Examples that show the FDIC prominently include Redneck Bank that’s giving 4.5% APY on balances up to $15,000 but there are some conditions.

In a way that combines exercise and banking, Fitness Bank offers 4.25% if you go for their combined savings and checking accounts linked with your fitness steps tracker.

So my list of 50+ accounts show how most bank and credit union accounts are offering APY rates between 3% to 5% if you meet certain criteria. I would say the most competitive bank interest rate being offered is at least 4% as of January 2023.

I evaluate some of the high yield offerings in reading some of the fine print and sharing my observations about the restrictiveness of some of these accounts and if I would go for them or not. The nice thing with some of the credit unions is you don’t have to be from their state of origin to join them. Make sure you understand all the fine print and requirements before you sign up to any of these accounts.

In the ongoing struggle with inflation, if we are getting 4% interest, we’re now only losing 2.5% against the CPI Inflation rate of 6.5%. This is way better than even in October 2022 when we were losing by 6% ish.

With the Fed likely to hike by another 25 bp to the range of 4.5% to 4.75% in their February 2023 meeting, eventually bank interest rate yields should go up even more for consumers too. Then it is projected that the Fed will hike the Fed Funds Rate by another 25 bp to the range of 4.75% to 5% by their late March 2023 meeting.

I’m looking forward to when more high yield banks will offer 5%, so yay for saving money!!!

If you’re interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide.

I look forward to making more investor friends! Add me on Instagram: michellemarki