Where to find high yield savings accounts

High yield savings accounts exist at three types of institutions: online banks, credit unions, and some traditional banks with online divisions. Online banks hold most of the accounts with the highest rates because they have lower overhead costs than brick-and-mortar branches. Credit unions sometimes match or exceed online bank rates for their members. Traditional banks—the ones with physical locations—rarely offer competitive high yield rates on savings, though some have created separate online divisions that do.

The banks and credit unions that offer high yield savings change their rates weekly or monthly based on what the Federal Reserve does and what competitors are offering. This means the highest-rate account today may not be the highest next month. The institutions listed here represent those commonly offering competitive rates, but you should check current rates directly before opening an account.

Key Takeaways

  • Online banks typically offer the highest rates because they do not maintain physical branches and pass those savings to depositors.
  • Credit unions may offer competitive rates to members, and some have no minimum balance requirements.
  • Rates change frequently—sometimes weekly—so comparing rates across multiple institutions before opening an account matters more than memorizing a single name.
  • All deposits at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per account owner per institution.
  • Some online banks require a minimum deposit to open; others do not, so check the specific account terms before you start.

Online banks with competitive high yield rates

Online-only banks that have consistently offered rates in the upper range include Marcus by Goldman Sachs, American Express Personal Savings, Ally Bank, and Capital One 360. These institutions have no physical branches, which reduces their costs. Marcus and American Express have historically offered rates at or near the top of the market, though neither guarantees a specific rate—rates move with market conditions.

Ally Bank and Capital One 360 also maintain competitive rates and offer additional features like no monthly fees and no minimum balance requirements. All of these are FDIC-insured, meaning your deposits up to $250,000 are protected by federal insurance. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person; all transactions happen online or by phone.

Smaller online banks and newer fintech platforms also offer high yield accounts, sometimes with rates that briefly exceed the larger names. These tend to be less stable—some close or get acquired—so checking that an institution is FDIC-insured and reading recent customer reviews about reliability matters before moving money there.

Credit unions that offer high yield savings

Credit unions are member-owned cooperatives, and some offer high yield savings rates to their members. The rates vary widely depending on the credit union's size and strategy. Larger credit unions like Connexus Credit Union and Pentagon Federal Credit Union have offered competitive rates, though membership requirements differ—some are open to the general public, while others require you to work in a specific industry or live in a specific area.

Credit unions are insured by the National Credit Union Administration (NCUA) up to $250,000 per account owner, the same protection as FDIC insurance at banks. The advantage of a credit union is sometimes lower fees and more personalized service. The disadvantage is that not all credit unions offer high yield savings, and you may need to meet membership criteria first. You can search for credit unions in your area or by membership category on the CO-OP Network website.

Traditional banks with online high yield divisions

Some large traditional banks have created separate online divisions to compete with online-only banks. Chase has Chase Bank Online savings, and Bank of America offers a similar product. These accounts typically offer rates higher than the bank's in-branch savings accounts but often lower than pure online banks. The advantage is that you may already have a relationship with the parent bank, making transfers easier.

The disadvantage is that these accounts rarely reach the top of the rate rankings. If your priority is the highest possible rate, an online-only bank usually beats a traditional bank's online division. If your priority is convenience—keeping everything with one institution you already use—the trade-off may be worth a slightly lower rate.

How to compare rates across institutions

Checking rates directly on each bank's website takes five minutes and is more reliable than any article listing specific numbers, because rates change constantly. Open the savings account page for each institution you are considering and note the APY (annual percentage yield) listed there. That number tells you how much your money will earn over a year if the rate stays the same.

Compare not just the rate but also the terms: minimum deposit required, monthly fees, how often you can withdraw without penalty, and whether the rate is may provide or variable. A rate that is may provide for six months is different from one that can change at any time. Read the fine print on the account details page, not just the marketing headline.

If you plan to keep money in the account for a long time, a slightly lower rate at a bank you trust may be better than chasing the absolute highest rate at an institution you know nothing about. If you are moving a large sum, confirm the institution is FDIC or NCUA insured and that your full deposit will be protected.

What to check before opening an account

Before you open a high yield savings account, verify three things: the institution is FDIC-insured (for banks) or NCUA-insured (for credit unions), the account has no monthly maintenance fees, and you can meet any minimum deposit requirement. Most online banks have no minimums, but some still do. The FDIC and NCUA websites have search tools where you can confirm an institution's insurance status.

Check whether the account allows unlimited withdrawals or if there are restrictions. Federal regulations no longer limit savings account withdrawals, but some banks still impose their own limits or charge fees for frequent withdrawals. Read the deposit and withdrawal policies on the account details page before you fund the account.

If you are moving money from another bank, ask whether the new bank offers a transfer service that pulls money directly from your old account. Most online banks do, and it is faster and safer than writing a check or doing a wire transfer yourself.

Frequently Asked Questions

Do I need a minimum deposit to open a high yield savings account?

Most online banks require no minimum deposit to open a high yield savings account, though some require $25 or $100. Credit unions vary—some have no minimum, others require $5 to $25 to open membership. Check the specific account terms on the institution's website before you start the process.

Can I move money between a high yield savings account and my checking account easily?

Yes, if both accounts are at the same bank. Transfers between your own accounts at the same institution are usually when ready or next-day. If the accounts are at different banks, transfers take one to three business days through the ACH system. Some banks offer faster transfers for a fee.

What happens to my money if the bank fails?

If the bank is FDIC-insured, your deposits up to $250,000 are protected by federal insurance. The FDIC will transfer your account to another bank or send you a check. This has happened only a handful of times in recent decades. You can confirm FDIC insurance status on the FDIC's BankFind tool.

Is a high yield savings account the same as a money market account?

High yield savings accounts and money market accounts are similar—both earn interest and are FDIC-insured. Money market accounts sometimes offer slightly higher rates but may require a larger minimum deposit or limit your monthly withdrawals. For most people, a high yield savings account is simpler and offers comparable rates.

Can the bank lower my interest rate after I open the account?

Yes. Banks can change savings rates at any time unless the account terms specify a may provide rate for a set period. When rates drop across the market, most banks lower their rates together. If your rate drops significantly below competitors, you can move your money to a different bank—there is no penalty for closing a savings account.