Banks and credit unions that offer HYSAs

High-yield savings accounts are offered by online banks, some traditional banks with online divisions, and credit unions. The banks you've probably heard of — Chase, Bank of America, Wells Fargo — typically offer much lower rates on savings accounts. The higher rates come from smaller online-only banks and some credit unions that have lower overhead costs and pass the savings to depositors.

Online banks that currently offer HYSAs include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360. Credit unions often have competitive rates through networks like CO-OP and Allpoint, though rates vary by institution. Your own bank may have added a high-yield option in recent years — it's worth checking their website or calling to ask what savings rates they currently offer.

The specific banks offering HYSAs change as rates move, and new banks enter the market regularly. Rather than a fixed list, look for banks advertising current rates on comparison sites or by searching "HYSA rates today" — this shows you what's available right now rather than what was available when an article was written.

Key Takeaways

  • Online-only banks and credit unions typically offer higher savings rates than traditional brick-and-mortar banks because they have lower operating costs.
  • Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank are examples of banks currently offering competitive HYSA rates, though rates change frequently.
  • Your existing bank may offer a high-yield savings product — calling or checking their website is faster than assuming they don't.
  • Comparison sites and rate-tracking websites show current rates across multiple banks so you can see what's available today rather than relying on outdated information.

What to look for beyond the interest rate

The APY matters, but it's not the only thing that matters. Check whether the bank charges a monthly maintenance fee — some HYSAs are free, others charge $5 to $10 per month, which cuts into your earnings. Look at the minimum deposit required to open the account; some banks require $0, others require $500 or more.

Confirm how the bank handles deposits and withdrawals. Most online banks let you transfer money in and out through ACH transfers (electronic transfers from another bank account), but some limit how many withdrawals you can make per month. Federal rules used to cap withdrawals at six per month, but that rule changed in 2020 — most banks now allow unlimited withdrawals, though a few still impose limits.

Check whether the bank is FDIC-insured (for banks) or NCUA-insured (for credit unions). This means your money is protected up to $250,000 if the bank fails. Nearly all legitimate banks and credit unions carry this insurance, but it's worth confirming before you move money.

How online banks compare to traditional banks

Online banks offer higher rates because they don't pay for physical branches, tellers, or the overhead that comes with a local presence. They pass those savings to customers through better interest rates. The tradeoff is that you can't walk into a branch to deposit cash or speak to someone in person — everything happens through a website, mobile app, or phone.

Traditional banks with physical locations offer lower rates but give you the option to deposit cash in person and talk to a banker face-to-face. Some people prefer this; others don't need it. If you rarely deposit cash and are comfortable managing your account online, an online bank's higher rate usually makes more financial sense.

A middle option is a traditional bank's online savings product. Some larger banks now offer a separate high-yield savings account through their online division, letting you keep everything in one institution while earning a better rate than their standard savings account. The rate is usually lower than a pure online bank, but higher than their regular savings product.

Credit unions as an alternative

Credit unions are member-owned financial institutions that sometimes offer competitive HYSA rates. Unlike banks, which are for-profit, credit unions return profits to members through better rates and lower fees. Not all credit unions offer high-yield savings, and rates vary widely depending on the credit union.

To open an account at a credit union, you typically need to become a member, which usually means meeting a membership requirement — this might be living in a certain area, working for a specific employer, or belonging to a particular organization. Some credit unions have opened membership to anyone, making them easier to join.

If you already belong to a credit union, ask whether they offer a high-yield savings product. If not, you can research credit unions in your area or look for ones with open membership. Credit union rates are often competitive with online banks, and some members prefer the community-focused approach.

Moving money between banks

If you find a bank with a better rate, you don't have to close your existing account. You can open a new HYSA at the higher-rate bank and transfer your savings there while keeping your checking account where it is. Most banks let you link accounts at other institutions and move money electronically.

An ACH transfer (the standard electronic transfer between banks) usually takes one to three business days. Some banks offer faster transfers for an extra fee, but for savings money you're not touching regularly, the standard speed is fine. You'll need your account number and routing number from your current bank to set up the transfer.

Keep in mind that moving your savings doesn't affect your checking account, debit card, or any automatic payments you have set up. You're just moving the money itself to a place where it earns more.

Rates change — how to stay informed

HYSA rates move up and down based on what the Federal Reserve does with interest rates. When the Fed raises rates, banks raise their savings rates. When the Fed lowers rates, banks lower theirs. This means the best HYSA today might not be the best one in six months.

You don't need to switch banks constantly, but it's worth checking rates once or twice a year. If your current bank's rate has dropped significantly below what other banks are offering, moving your money takes about five minutes and can earn you hundreds of dollars per year on a large balance.

Websites like Bankrate, DepositAccounts, and NerdWallet track HYSA rates across multiple banks and update them regularly. Bookmarking one of these sites and checking it every few months is an straightforward way to know whether your bank is still competitive.

Frequently Asked Questions

Can I have a high-yield savings account at more than one bank?

Yes. You can open HYSAs at multiple banks and move money between them. Some people keep accounts at two or three banks to spread their savings or to take advantage of different features. Just remember that FDIC insurance covers up to $250,000 per bank, so if you have more than that in savings, spreading it across multiple banks protects all of it.

Do I need good credit to open a high-yield savings account?

No. Banks don't check your credit score for savings accounts. They may check ChexSystems (a banking history report) to see if you've had problems with previous accounts, but a good credit score is not required. If you've been denied a bank account before, ask the bank why — it's usually fixable.

What happens to my money if the bank fails?

Your money is protected up to $250,000 by FDIC insurance (or NCUA insurance at credit unions). If the bank fails, the FDIC takes over and either transfers your account to another bank or sends you a check. This has happened only a handful of times in recent decades, and depositors have always been protected.

Is it safe to bank online?

Online banks use the same security technology as traditional banks — encryption, two-factor authentication, and fraud monitoring. Your money is just as safe. The main risk is your own password; use a strong, unique password and don't share your login with anyone.

Can I withdraw money from a high-yield savings account whenever I want?

Yes, with rare exceptions. Most banks allow unlimited withdrawals. A few credit unions or smaller banks may still limit withdrawals, so check the account terms before you open. Even if there's a limit, it's usually high enough that it won't affect normal use.