October 20, 2023

3 Percent Interest Savings Account

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Looking for a way to earn without much effort? Check out these 3% high-yield savings accounts to get you started.

What are the best high-yield savings accounts?

Best 3% Interest Savings Accounts

Currently, banks are offering even higher APYs. Here are some savings accounts with the best rates:

How Much Do You Earn With A 3% Interest Savings Account?

You can slowly grow your money with a 3% interest savings account. Use this calculator to check how much you can earn:

3% Interest Calculator

Here's a table of how much you would have with 3% interest and different monthly contributions:

Monthly contribution1 year3 years5 years
$1,000 Initial Deposit
$5,000 Initial Deposit
$10,000 Initial Deposit
$20,000 Initial Deposit

Can You Lose Money In A 3% Savings Account?

If your bank or credit union is FDIC-insured or NCUA-insured, you won't have to worry about losing money in your savings account.

Deposits are protected by the federal government up to $250,000 per depositor, per ownership category. This means you're insured up to $250,000 for individual accounts and up to $500,000 for joint accounts.

Remember that anything over the limit is not covered by FDIC or NCUA insurance anymore. So if you're saving more than that, it'd be smart to split your funds into several savings accounts.

Additionally, you can lose money due to fees from failure to meet minimum balance requirements.

Pros and Cons of a 3% Savings Account

Here are the pros and cons of a 3% interest savings account:


  • Earn money passively
  • Easy access to your funds
  • Low-risk investment
  • Easy to open an account
  • Savings are FDIC-insured up to $250,000


  • APY tends to fluctuate
  • Mostly offered by online-only banks
  • Usually limited to 6 withdrawals per monthly cycle
  • Possible monthly service fee
  • Possible opening deposit or balance requirements

What is most important to you in choosing a savings account?

Alternatives To 3% Savings Accounts

If you're still on the fence about opening a high-yield savings account, here are some alternatives you can consider:

Certificate of Deposit
A Certificate of Deposit is best if you can commit to locking up your money for a period of time. In exchange, you get a fixed APY for the entire term. So you get guaranteed returns even if market conditions change.

Unlike with a high-yield savings account, you won't be able to access your funds until it matures. Should you need to withdraw early, you'll be subject to a penalty.

Best CD rates:

Money Market Account
Money market accounts are similar to savings accounts, but they may offer more flexibility. Some come with an ATM or debit card, and let you write checks and pay bills.

However, the downside is that some banks may require you to make a large initial deposit or to maintain a certain balance.

Best money market accounts:

High-Yield Checking Account
A high-yield checking account is a good option if you want to earn interest on your checking balance.

You can get a decent APY along with easy access to your funds through a debit card.

Best high-yield checking accounts:

Savings accounts with 3% interest are ideal if you want to store your money in a safe place while earning passively. It can help you boost your funds through competitive rates.

It's good for emergency funds or if you have a short-term financial goal you want to achieve. You'll get easy access to your money, so you can withdraw anytime you need to.

Is 3% good for a savings account
In comparison to a traditional savings account, one with 3% interest is definitely better. It's higher than the national average savings rate of 0.46% APY, so it's a decent way to slowly boost your money.

Bottom Line

Putting your funds in a high-yield savings account is a good way to make your money work harder for you. It can help you increase your pace when you're saving up for short-term financial goals.

Compare savings accounts to get the highest APY possible, so you can reach your goals faster.

Darlene Santos is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Darlene Santos at darlene.santos@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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Best High Yield Savings Accounts

April 18, 2019 - By Donna Tang - Reviews
Make your money work harder for you in a high-yield savings account. Here are the top savings accounts to grow your money.
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Best Savings Accounts for College Students

Want to think ahead? Start preparing for your future using these student-friendly savings accounts with high APYs and no fees.

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Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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