Best High Yield Interest Savings Accounts October 2022

Best High Yield Interest Savings Accounts October 2022

Here are the best 50+ high yield interest bank accounts I found in October 2022.

Bank interest yields are getting decent again with many offering 2%+ interest rate across money market, savings, and checking accounts. Interest rates are up way higher than back in July when I last looked at bank interest rates.

Since the Federal Reserve has been hiking their Fed Funds Range (now in the current range of 3% to 3.25%) 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 0.4% to as high as 5% in annual percentage yield (APY), with the median being 2.7% and the average being 2.6%.

None of this content is sponsored, what I’m sharing is just from the research I’ve gathered from various sites like Nerdwallet, Investopedia, and Bankrate.

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. And also it’d be nice to have an easy way to deposit cash into the account because some online banks use third party vendors that charge a lot if you want to deposit cash through their mechanisms.

One good bank example with some of the least amount of fees and not too burdensome to have an account with them is Ally Bank. Compared to 0.01% APY from brick and mortar banks, Ally gives 2.25% APY.

With the advent of mobile banking, there’s a lot less of a need to have brick and mortar banks. However, what is nice is if you can get an opening bonus with them such as with Chase’s Total Checking offering $200 (used to be $225) of an account opening bonus.

The main catch with this is if you want to avoid the monthly fees of $12, you would need to either have direct deposit of $500+ per month, or a daily $1500 balance, or a combined $5000 across linked Chase accounts. But in this one-time bonus, what’s nice is an immediate 13.33% return of $200 on say the $1500 to keep the account open without fees.

Most of the accounts I display here are online accounts and don’t give an opening bonus but have way higher yields above 2% generally.

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.

Examples that show the FDIC prominently include Redneck Bank that’s giving 2.9% APY on balances up to $10,000 and 0.25% on balances over $10K. In addition, FDIC member T-Mobile Money (aka Customers Bank) is giving 2.25% on all balances, and they give T-Mobile wireless customers another 4% on balances up to $3,000.

So my list of 50+ accounts show how some bank and credit union accounts are offering APY rates between 2% to 5% if you meet certain criteria. The most common range of interest rate is between 2.25% to 2.75% APY as of October 2022.

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 these accounts.

It feels like Christmas in October with bank interest rates finally returning to the levels we had back in 2019 when they were around 2%, but that was also when inflation was only at around 2%. So now we’re still losing 6% against the CPI Inflation of 8.3%, but it’s still better than before.

With the Fed likely to hike by another 75 bp to the range of 3.75% to 4% in their November 2022 meeting, eventually bank interest rate yields will go up for consumers too. 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.

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