Discover the Ultimate High-Yield Savings Account for Maximizing Your Earnings and Savings

Editor's Note: The current APYs featured in this article were accurate at the time of publication but are subject to fluctuation in accordance with the Fed rate. Updates on changes will be provided by CNBC as they become public.

For those seeking an annual percentage yield (APY) of over 1% on their savings, it's worth turning to online banks as interest rates on savings accounts have dropped by 50% in the past year.

Varo Bank, a national bank established in Utah in 2015, offers the Varo Savings Account, which is ranked among Select's best high-yield savings accounts due to its uniquely tiered APY system that incentivizes customers to save more. Additionally, the online bank provides two savings programs that use automatic transfers from the customer's Varo bank account to their savings account, which makes saving more accessible each month.

CNBC Select has reviewed the Varo Savings Account and outlined its features, such as APY, mobile access, perks, and fees, to help customers determine whether this high-yield savings account is suitable for them. Read on to explore the account in more detail.

APYAccess to your cashPerksFeesBottom lineThe current APY stands at 3.00%, and all Varo Savings Account holders receive this rate, regardless of their account balance. There are no minimum deposit requirements necessary to open either a bank account or a savings account, and customers need just $0.01 to start earning interest through their online savings account.

By fulfilling specific monthly obligations, account holders can earn an impressive APY of 5.00%. To qualify, customers must make a minimum of five purchases using their Varo Bank Visa® Debit Card while receiving direct deposits totaling $1,000 or more within a qualifying period and maintain a savings account balance that doesn't exceed $5,000 (with no minimum balance).

Varo Bank compounds interest on savings accounts daily and credits monthly.

Opening a Varo savings account requires first opening a Varo bank account. Account holders may withdraw funds without fees from Varo's network of 55,000 Allpoint® ATMs.

Consumers may add money to their account through direct deposit, linking an external bank account, transferring funds through a digital wallet such as Venmo, depositing a check through the mobile app, or depositing cash via a service called Green Dot®, which works with Varo as an online bank. Cash deposits may be made at thousands of participating retail locations across America, including Walmart, Target, CVS, Rite Aid, 7-11, Walgreens, Dollar General, Safeway, Albertsons, Kmart, Family Dollar, and Kroger, with Green Dot charging up to $5.95 per transaction.

Varo Bank account holders can enjoy up to six deposits or withdrawals per month from their savings account free of charge as required by law. Due to the coronavirus pandemic, however, the withdrawal limit is currently waived under Regulation D, which previously restricted the number of times deposit account holders could access their cash per month.

Apart from its tiered savings APY program, Varo Bank offers two programs that enable automated savings. Save Your Pay allows customers to transfer a percentage of their salary into their savings from their bank account, while Save Your Change rounds up checking account transactions to the nearest dollar and transfers the difference to customers' savings.

There are no transaction or monthly fees associated with the Varo Bank Account or the Varo Savings Account, and no minimum balance is required to open either account. Varo Bank account holders who qualify for Varo Advance, a small dollar cash advance line of credit, are not charged a fee for cash advances of up to $20. Advances above $20 come with a fee.

Varo Bank does not charge a fee for cash withdrawals from any Allpoint ATMs but charges a $2.50 cash withdrawal fee for all out-of-network ATM transactions. An additional fee might be charged by the ATM operator. Cash deposits are also free, but customers who opt to load cash onto their card using Green Dot incur a retail service fee of up to $5.95.

For those willing to bank solely over the phone or online, the Varo Savings Account is a good option, especially for individuals looking to earn more on their savings. By taking advantage of Save Your Pay and Save Your Change programs, savers can transfer funds to their account without lifting a finger. For individuals who prefer high-yield savings accounts without opening a checking account, the Marcus by Goldman Sachs High Yield Online Savings is a viable option as it is free and provides easy mobile access. The Synchrony Bank High Yield Savings account is another alternative with ATM access for easy cash withdrawals.

CNBC Select recommends high-yield savings accounts that offer an APY of around 1%, have no minimum balance requirements and no monthly maintenance fees to offer the best return on your investment. All the accounts mentioned are FDIC-insured up to $250,000, and earnings depend on the account balance and any associated fees. Note that the rates and fee structures for high-yield savings accounts may change without notice and depend on the Federal Reserve rate. Finally, most banks and institutions require a deposit of new money to open an account, meaning that customers cannot transfer funds they already have at that particular bank.

Marcus by Goldman Sachs High Yield Online Savings information has been independently gathered by Select and has not been reviewed or authorized by the banking institution before publication. Goldman Sachs Bank USA is an FDIC member.

Editor's Note: The opinions, evaluations, critiques, or suggestions articulated in this piece are solely those of the Select editorial staff, and have not been assessed, approved, or supported by any external entity.