Best Interest Rates

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Whether you’re looking for a savings account, certificate of deposit or money market account, you can find interest rates between 3% and 5% if you know where to look.

Keep in mind that savings accounts offer greater flexibility and access to your money, often without penalties. But you may find a higher interest rate with a CD, which can tie up your money for a year or more.

Here is a glance at some financial institutions with the best interest rates for December 2022:

  • Varo Bank: Savings account offers up to APY
  • Marcus by Goldman Sachs, Member FDIC: 12-month high-yield CD offers APY
  • Citi®: 12-month fixed-rate CD offers APY
  • Blue Federal Credit Union: Rate Riser term share certificate offers APY
  • Capital One: 5-year CD offers APY
  • Valley Direct: High-yield savings account offers APY
  • Apple Federal Credit Union: Select certificates offer APY
  • UFB Direct: High-yield savings account offers APY
  • Citizens: High-yield online savings account offers APY
  • CIT Bank: 11-month CD offers APY

Keep reading to learn more about these banks and their interest rates.

Varo Bank

Why it stands out: Varo Bank’s savings accounts offer up to APY on balances up to $5,000 after meeting set requirements. Otherwise, they offer on your balances, making it a solid choice for emergency savings.

Pros

  • No minimum balance required
  • No monthly or overdraft fees
  • Access more than 55,000 conveniently located Allpoint ATMs
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Cons

  • Only earn on up to $5,000 of your balance
  • Direct deposit of $1,000 is required monthly to earn the higher interest level
  • Online-only bank

What to look out for: Make sure you meet the minimum requirement of direct deposits totaling $1,000 or more and end the month with a positive balance in both your Varo Bank Account and Savings Account to earn the highest interest rate.

Marcus by Goldman Sachs

Why it stands out: Earn as of Jan. 24, 2023 with a 12-month high-yield CD. Enjoy 24/7 customer service by phone or chat and manage your account easily online. Plus, you can lock in a high rate the day you open your account and can take up to 10 days to fund your CD.

Pros

  • Annual Percentage Yield (APY)
  • Lock in rates for up to 10 days

Cons

  • $500 minimum deposit
  • Early withdrawal penalties may apply

What to look out for: If you don’t actively manage your CD when it matures, Marcus by Goldman Sachs, Member FDIC, will renew the CD at current rates for another 12-month term.

Citi®

Why it stands out: Citi offers a 1-year APY fixed-rate CD, with the backing of one of America’s biggest banks and access to 4,000 branches across the world.

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Pros

  • Earn APY for a year
  • Manage your account online or in a Citi branch
  • 4,000+ locations worldwide
  • No account opening or maintenance fees

Cons

  • Early withdrawal penalties may apply

What to look out for: Citi requires a minimum deposit of $500 to open a CD.

Blue Federal Credit Union

Why it stands out: Blue Federal Credit Union offers a APY term share certificate with a minimum deposit of $5,000. This special 22-month Rate Riser term share certificate may increase its yield as the CPI rises, but the rate will never fall.

Pros

  • No fees
  • High APY

Cons

  • $5,000 minimum deposit
  • Only available to residents of Colorado and Wyoming
  • Early withdrawal penalties may apply

What to look out for: This account is for serious savers, as you’ll need a $5,000 minimum balance to open this term share certificate.

Capital One

Why it stands out: Capital One offers a APY on 5-year CDs opened online. The 1-year CD has a APY, while the 2-year CD has a APY. There is no minimum balance required.

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Pros

  • Choose your interest payments monthly, annually or at the end of the term
  • No minimum balance
  • No fees

Cons

  • Early withdrawal penalties may apply
  • Must open the 360 CD online to get these high rates

What to look out for: These interest rates apply only to Capital One’s online products.

Valley Direct

Why it stands out: Valley Direct has an online high-yield savings account with an interest rate of APY.

Pros

  • Withdraw money online, through the app or by using Zelle
  • 24/7 online service
  • No maintenance fees

Cons

  • Minimum opening deposit of $1
  • No withdrawal penalties
  • Online only

What to look out for: In the future, Valley Direct may re-institute withdrawal penalties for making more than 6 savings withdrawals within a statement period.

Apple Federal Credit Union

Why it stands out: Apple Federal Credit Union offers a high introductory rate of APY on certificates with terms of 5 months, 9 months or 18 months.

Pros

  • Open your certificate online or in a branch
  • Bank at 21 branches across Northern Virginia
  • More than 53,000 ATMs nationwide

Cons

  • Membership limited to residents of Northern Virginia

What to look out for: Make sure you are eligible to become a member based on where you live, work or go to school.

UFB Direct

Why it stands out: UFB Direct offers a high-yield savings account with a APY. With the UFB Best savings account, you don’t need to tie up your money for a year, as with some of the CDs on this list.

Pros

  • No monthly maintenance fees
  • No minimum opening deposit

Cons

  • Online only

What to look out for: Must be a U.S. citizen or resident alien with a Social Security number to open an account.

Citizens Bank

Why it stands out: Citizens offers a high-yield online savings account that has an APY of with no fees and a minimum deposit of only 1 penny.

Pros

  • Open an account in just 5 minutes
  • High-yield APY of
  • Minimum opening deposit of just one cent
  • Set up direct deposit or recurring transfers

Cons

  • Online only

What to look out for: Citizens Bank is online only. To access your account, you will need to be comfortable with online banking.

CIT Bank

Why it stands out: Earn APY with CIT Bank’s No-Penalty, 11-month CD.

Pros

  • Withdraw without penalties beginning 7 days after opening your CD
  • No maintenance fees
  • FDIC-insured

Cons

  • $1,000 minimum opening deposit
  • Online-only

What to look out for: You’ll need $1,000 to open the 11-month CD.

Final Take

Before choosing a bank based solely on the interest rate, determine your financial goals. Are you saving for a vacation that is six months away, or are you looking to build an emergency savings account? CDs with terms of 6 months to a year may provide higher interest rates, but you won’t have immediate access to your money without penalties until the end of the term. On the other hand, an online savings account with a linked debit card can provide immediate access to emergency funds while still helping your money grow through compounding interest.

More on Interest Rates

GOBankingRates’ Best Banks 2023

FAQ

  • Which bank has the best interest rate?
    • Whether you're looking for a CD, money market account or a savings account, you can find interest rates of 4.00% APY and above. Based on our research, Marcus by Goldman Sachs and Citi both offer an industry-high APY on a 12-month CD.
  • Which bank gives 7.00% interest on savings accounts?
    • No U.S.-based brick-and-mortar or online banks offer 7.00% interest on savings accounts. However, you can find banks that offer interest rates of 4.00% APY and above.
  • Where can I get the highest interest rate on my money?
    • You can find the highest interest rates with one-year CDs or money market accounts at banks like CIT Bank, Marcus by Goldman Sachs and Citi.
  • Who has the highest 12-month CD rate?
    • Marcus by Goldman Sachs and Citi currently have the highest 12-month CD rates.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 16, 2022. 

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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