Where to find a high-yield savings account right now
High-yield savings accounts exist at three types of institutions: online banks, traditional banks with online divisions, and credit unions. Online banks typically offer the highest rates because they have lower overhead costs than brick-and-mortar branches. Traditional banks like Chase, Bank of America, and Wells Fargo offer high-yield accounts, but their rates are usually lower than online competitors. Credit unions often match or beat online bank rates for their members, though you must meet membership requirements to open an account.
The banks and credit unions offering competitive rates change frequently as interest rates move. Rather than listing specific institutions that may have changed rates by the time you read this, the practical approach is to check current rates on comparison sites like Bankrate, DepositAccounts, or NerdWallet, which update daily. These sites let you filter by account type, minimum balance, and whether you need a physical branch nearby.
When you find an account that interests you, visit the bank's website directly to confirm the rate, any monthly fees, and the minimum deposit required. Some banks advertise a high rate but charge monthly maintenance fees that eat into your earnings, or require a $25,000 minimum balance that most savers don't have.
Key Takeaways
- Online banks generally offer higher rates than traditional banks because they operate without physical branch costs.
- Credit unions can match online bank rates but require you to become a member, which sometimes means opening a checking account or meeting other conditions.
- Rates change weekly or monthly, so comparing current offers on Bankrate or DepositAccounts is more useful than any fixed list.
- Check the fine print for monthly fees and minimum balance requirements, which can reduce your actual earnings.
- All deposits up to $250,000 per account owner are insured by the FDIC (at banks) or NCUA (at credit unions), regardless of the rate offered.
How online banks keep rates higher than traditional banks
Online banks have no tellers, no lobby, no real estate costs, and no branch network to maintain. That lower cost structure means they can pass more of their profit margin to depositors in the form of higher interest rates. A traditional bank with 500 branches nationwide has to cover the salary and rent for all of them; an online bank covers a data center and customer service staff.
This does not mean online banks are riskier. They are still FDIC-insured, meaning your money is protected the same way it would be at Chase or Bank of America. The trade-off is convenience: you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks accept mobile check deposits and transfers from other accounts, which covers most everyday needs.
Some online banks are subsidiaries of larger financial institutions (for example, Marcus by Goldman Sachs), while others are independent companies. Both types are FDIC-insured. The size of the parent company does not affect your deposit protection.
What credit unions offer and who can join
Credit unions are member-owned cooperatives, not corporations. They often pay higher rates on savings because they return profits to members rather than shareholders. Many credit unions match or exceed online bank rates on high-yield savings accounts.
The catch is membership. Credit unions serve specific groups: employees of a particular company, members of a profession, people who live or work in a certain county, or people who belong to an organization like a union or church. You cannot straightforward open an account at any credit union. You have to meet their membership criteria first.
To find credit unions you can join, use the CO-OP Network locator or search by your employer, profession, or location. Some credit unions let you join if you open a regular checking account or make a small donation to a related nonprofit. Once you are a member, you can open a high-yield savings account. Credit union deposits are insured by the NCUA up to $250,000, the same protection as FDIC insurance.
Traditional banks with competitive high-yield options
Large banks like Chase, Bank of America, Citibank, and Wells Fargo all offer high-yield savings accounts, but their rates typically lag behind online banks and credit unions by 0.5% to 1.5% annually. The advantage is convenience: you may already have a checking account there, you can deposit cash at a branch, and you have access to in-person customer service.
If you already bank at a traditional institution, it is worth checking whether they offer a high-yield savings product. The rate may be lower than an online alternative, but the difference in earnings on a $10,000 balance might only be $50 to $150 per year. For some people, the convenience of staying with one bank is worth that trade-off.
Some traditional banks also own online subsidiaries that offer higher rates. For example, Bank of America owns Merrill Edge, and Citibank owns Citi Online. These subsidiaries often offer better rates than the parent bank's in-branch product, though still not always as high as independent online banks.
Comparing accounts: what to look at beyond the rate
The interest rate is not the only factor that affects how much money you actually earn. A bank advertising 4.50% APY but charging a $10 monthly fee is less valuable than one offering 4.40% with no fees. Over a year, the fee costs you $120, which would require a balance of about $3,000 to offset at the lower rate.
Check these details before opening an account: monthly maintenance fees, minimum balance requirements, how often interest compounds (usually daily, which is best), whether you can make unlimited deposits and withdrawals, and whether the rate is promotional or permanent. Some banks offer a higher rate for the first three months, then drop it. Others lock in a rate for as long as you hold the account.
Also confirm how the bank handles transfers. Most high-yield savings accounts limit you to six transfers per month (a federal rule that was suspended but some banks still enforce it). If you plan to move money in and out frequently, ask whether the bank counts transfers to your own checking account against that limit.
How to move money between banks without losing interest
If you already have savings at a traditional bank and want to move them to a higher-rate account, the transfer itself does not interrupt your interest. Interest accrues daily, so you earn it right up until the money leaves your old account, and you start earning at the new rate as soon as it arrives.
Use an ACH transfer (Automated Clearing House), which is free and takes one to three business days. Both your old and new bank can initiate it. You will need the account number and routing number of the account you are sending money to or from. Do not use a wire transfer unless you have a specific reason—wire transfers cost money and are harder to reverse if something goes wrong.
If you are moving a large balance, confirm with your new bank that the deposit will not trigger any reporting requirements or account holds. Most banks do not hold deposits, but some may verify large transfers to prevent fraud.
Understanding FDIC and NCUA insurance on high-yield accounts
Every dollar you deposit in a high-yield savings account at an FDIC-insured bank is protected up to $250,000 per account owner, per bank. This protection is the same whether the account earns 0.01% or 5%. The insurance covers the balance, not the interest separately.
If you have more than $250,000 to save, you can spread it across multiple banks to stay fully insured. For example, $250,000 at Bank A and $250,000 at Bank B are both fully covered. You cannot increase coverage by opening multiple accounts at the same bank under your own name—they all count toward the $250,000 limit.
Credit unions use NCUA insurance instead of FDIC, but the coverage is identical: $250,000 per account owner per institution. If you are a member of multiple credit unions, each one's coverage is separate.
Frequently Asked Questions
Can I move money out of a high-yield savings account whenever I want?
Yes, but some banks limit the number of transfers you can make per month. Federal rules previously capped transfers at six per month, and while that rule was suspended, some banks still enforce it. Check the account terms before opening. Most banks do not limit deposits, only withdrawals or transfers out.
What happens to my rate if the Federal Reserve changes interest rates?
High-yield savings rates are variable, meaning they can move up or down. When the Fed raises rates, banks usually raise their savings rates within days or weeks. When the Fed cuts rates, banks cut savings rates too, sometimes when ready. You are not locked into a rate like you would be with a CD.
Do I need a minimum balance to earn the advertised rate?
It depends on the bank. Some offer the full rate on any balance, while others require a minimum like $1,000 or $25,000. Check the account details on the bank's website. If you cannot meet the minimum, the bank may pay a lower rate or charge a monthly fee.
Is my money safer at an online bank than a traditional bank?
No. FDIC insurance protects deposits equally at online and traditional banks. The difference is access: you cannot walk into a branch at an online bank, but your money is insured the same way. Both types are required to meet the same federal safety standards.
What is the difference between a high-yield savings account and a money market account?
High-yield savings accounts and money market accounts often offer similar rates. Money market accounts sometimes come with a debit card or checkbook, while savings accounts typically do not. Both are FDIC-insured and have variable rates. Compare the specific terms at each bank rather than assuming one type is always better.