Where to find high yield savings right now

High yield savings accounts exist at three types of places: online banks (which have no physical branches), traditional banks that also offer online accounts, and credit unions. Online banks tend to offer the highest rates because they have lower costs than banks with buildings and staff. Traditional banks with both branches and online options usually offer lower rates on their online savings, but you can walk in if you need help. Credit unions are member-owned and sometimes offer competitive rates, though not always — it depends on the individual credit union.

The banks and credit unions offering the highest rates change month to month as rates shift. Rather than listing specific names and rates that will be outdated within weeks, the better approach is to know where to look and what to compare. Online banks like Marcus, Ally, American Express Personal Savings, and Capital One 360 have historically been among the highest-paying options, but you should check current rates yourself before opening an account.

The easiest way to see current rates across many banks at once is to visit a rate comparison site like Bankrate, DepositAccounts, or the FDIC's own BankFind tool. These sites update daily and let you sort by rate, location (if you need a physical branch), and whether the bank is FDIC-insured. You can also visit individual bank websites directly — most show their current savings rate on the homepage.

Key Takeaways

  • Online banks typically offer higher rates than traditional banks because they have fewer physical locations and lower operating costs.
  • Rates change frequently, so comparing current offers across multiple banks before opening an account will save you money over time.
  • Credit unions may offer competitive rates, but you must be a member to open an account, and membership rules vary by credit union.
  • All deposits at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per account owner, regardless of the interest rate.

Online banks versus traditional banks with online options

Online banks operate entirely through websites and apps — there are no branches to visit. Because they do not pay for building leases, teller staff, or branch management, they can pass those savings to customers in the form of higher interest rates. They also tend to have lower minimum balances or no minimum at all. The tradeoff is that if you need to speak to someone, you do it by phone, email, or chat, not face-to-face.

Traditional banks — the ones with branches in your neighborhood — usually offer lower rates on their online savings accounts. They use the online account as a way to keep customers, but the real money for them comes from loans and other services. If you already have a checking account at a traditional bank and want to keep everything in one place, their online savings account may be convenient enough that the slightly lower rate is worth it to you. That is a personal choice.

Some people use both: a high-rate online savings account at an online bank for money they are saving, and a checking account at a traditional bank for daily spending. Money moves between them in one or two business days, so this approach works well if you do not need when ready access to your savings.

Credit unions and how membership works

Credit unions are not-for-profit organizations owned by their members. Because they do not have shareholders demanding profits, they sometimes offer better rates than banks. However, you can only open an account at a credit union if you meet their membership requirements. These vary widely — some credit unions let anyone join, while others require you to work for a specific employer, live in a specific area, or belong to a specific organization.

To find a credit union you can join, start with the CO-OP Network locator or the Credit Union Locator on the National Credit Union Administration (NCUA) website. Search by your location or employer, and the tool will show you which credit unions accept members like you. Once you find one, call or visit to ask about their current savings rates and what documents you need to open an account.

Credit union deposits are insured by the NCUA, which works the same way as FDIC insurance at banks — your money is protected up to $250,000. Some credit unions offer rates as high as online banks, but others do not, so comparing is still important.

What to look for when comparing accounts

The interest rate is the most obvious thing to compare, but three other details matter. First, check whether the rate is may provide or whether the bank can lower it without notice. Most banks can change rates whenever they want, but some offer a rate may provide for a set period — usually a few months. Second, look at the minimum balance required to earn the advertised rate. Some banks require $0, while others require $500 or $1,000. If you do not meet the minimum, you earn a much lower rate or no interest at all.

Third, check whether the bank charges monthly fees. Most online banks do not, but some traditional banks charge $5 to $10 per month unless you maintain a certain balance or set up direct deposit. A $10 monthly fee wipes out the benefit of a higher rate if your balance is small. Fourth, confirm that the bank is FDIC-insured (for banks) or NCUA-insured (for credit unions). This protection is what keeps your money safe if the institution fails.

Finally, think about access. If you might need to move money quickly, check how long transfers take. Most online banks move money to another bank in one to two business days. Some offer same-day transfers for a small fee, and a few offer when ready transfers to linked accounts.

How rates are set and why they change

Banks set their savings rates based on the Federal Reserve's interest rate, which is the rate the Fed charges banks to borrow from each other. When the Fed raises its rate, banks have more incentive to offer higher savings rates because they can earn more on the money they lend out. When the Fed lowers its rate, banks lower savings rates because they earn less. This is why high yield savings rates were much higher in 2023 and 2024 than they were in 2020 and 2021.

Banks also compete with each other. If one online bank raises its rate to attract new customers, others often follow. This competition is why online banks tend to offer the highest rates — they are fighting for customers and cannot rely on physical branches to keep people loyal. A traditional bank with branches in your town does not need to offer the highest rate because you might stay for convenience.

Rates can change at any time, sometimes weekly. Banks are not required to give you notice before lowering the rate on a new deposit, though they usually do. If you already have money in a high yield savings account, the rate you locked in when you opened it may drop over time. This is normal and expected.

Getting started: opening an account

Opening a high yield savings account takes 10 to 20 minutes and requires a few pieces of information. You will need your Social Security number, a government-issued ID, your current address, and a way to fund the account (usually a bank account at another institution or a debit card). Most banks let you open an account entirely online through their website or app.

Once you have chosen a bank and opened the account, you transfer money into it from your existing checking account. This transfer usually takes one to two business days. After that, the interest starts accruing — meaning the bank begins calculating and adding interest to your balance. Interest is typically added monthly, though some banks add it daily or quarterly.

If you are moving money from a savings account at a traditional bank, you do not have to close that account first. You can keep both open and move money between them as needed. However, federal rules limit you to six transfers or withdrawals per month from a savings account (though this rule is enforced less strictly now than it was before 2020). If you exceed the limit, the bank may charge a fee or close the account.

Frequently Asked Questions

Is my money safe in an online bank?

Yes, as long as the bank is FDIC-insured. The FDIC is a government agency that insures deposits up to $250,000 per account owner per bank. Online banks are just as regulated and insured as traditional banks. You can check whether a bank is FDIC-insured by searching the FDIC's BankFind tool on their website.

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

Yes, but there may be limits. Federal rules allow up to six transfers or withdrawals per month from a savings account. If you exceed this, the bank may charge a fee or close the account. However, you can always withdraw money in person at a branch (if the bank has branches) without counting toward this limit. Online banks have no branches, so all withdrawals count.

What happens if the bank fails?

If an FDIC-insured bank fails, the FDIC takes over and protects your deposits up to $250,000. You will be able to access your money, though it may take a few days. Bank failures are rare — the FDIC has protected deposits this way only a handful of times in recent decades.

Do I have to keep a minimum balance?

It depends on the bank. Many online banks have no minimum balance requirement. Others require $500 or $1,000 to earn the advertised rate. If you fall below the minimum, you may earn a lower rate or no interest. Check the bank's terms before opening an account.

Can I move my money to a different bank later?

Yes. You can transfer money out of a high yield savings account to another bank at any time. The transfer usually takes one to two business days. You can also close the account whenever you want — there are no penalties for closing a savings account.