How to find savings accounts with the highest APYs

When it comes to saving money, chances are you want to earn the highest returns possible. After all, those returns are a simple way to bulk up the money in your savings without having to do any extra work. All you have to do is deposit your funds and accrue interest over time.

But there are some accounts that offer more than others in terms of returns on your money, so it's important to find the right fit. And, with inflation continuing to impact the value of the dollar — and most people's budgets — it's smart to ensure your savings is in the right spot.

One way to do that is to find the accounts with the highest annual percentage yields (APYs). An APY considers both the interest rate and how often that interest compounds. Higher compounding frequency leads to more frequent interest additions, which in turn accelerates your savings growth. 

Learn more about the top savings account options available to you right now.

How to find the accounts with the highest APYs

If you want to find the account options offering the highest APYs on your money, consider the following:

Explore the account options

There are a few different types of accounts offering high APYs right now: high-yield savings accounts, certificates of deposit (CDs) and money market accounts.

High-yield savings accounts are a type of savings account that offers notably higher APYs compared to traditional savings accounts. These accounts are typically provided by online banks and financial institutions, and are currently offering rates as high as 5% or more, so they're a great place to start.

CDs are time-bound savings accounts with fixed interest rates and terms. While you can't access your funds during the agreed-upon term without penalty, CDs often offer higher APYs than standard savings accounts — and it's easy to find CDs that offer rates as high or higher as high-yield savings accounts currently. Just be sure to evaluate your financial goals and determine if you can lock away your money for the chosen CD term.

Money market accounts blend features of savings accounts and investment accounts. They typically have higher APYs than regular savings accounts while still offering some level of liquidity. Money market accounts might also come with additional features like check-writing abilities, but may also have more account requirements or fees than high-yield savings accounts.

Explore the rates you could earn with some of the top savings accounts now.

Research online banks

Traditional brick-and-mortar banks often offer lower interest rates due to their higher operational costs. Online banks, on the other hand, have lower overheads and can pass those savings on to customers in the form of higher APYs. 

If you want to find the highest APYs, research reputable online banks and financial institutions that specialize in high-yield savings and CDs. There may be options that fit your financial goals — and if you don't need access to physical banking locations, it could be an easy way to snag the highest APY. 

Compare rates, terms and conditions

A simple way to determine the best APY on your money is to compile a list of potential banks or credit unions and then compare the rates they offer. You can also use online compound interest calculators to see how much you could potentially earn over time.

And, before committing to any account, carefully read the terms and conditions. Understand any limitations, withdrawal rules and penalties associated with the account. By knowing the terms, you can prevent unwelcome or costly surprises down the line.

Look for promotional offers

Financial institutions sometimes offer promotional rates to attract new customers. These temporary high APYs can be advantageous, especially if you're looking to move your funds for a limited time to maximize earnings. Be sure to understand the terms, though, including when the rate will revert to the standard APY, before opening any accounts.

Be cautious about fees

While pursuing high APYs, don't forget to consider account fees. Some accounts may have maintenance fees, transaction fees or penalties. 

For example, most banks and credit unions will charge early withdrawal fees on CDs if you need to access your funds before the CD term matures. These and other fees can significantly impact your overall earnings, so factor them into your decision-making process.

The bottom line

Locating accounts with the highest APYs typically requires diligent research. There are numerous ways to approach the process, but be sure to consider your account options, weigh the fees and terms and check for promotions and top rates from online banks to find the best option with the top rate for you.