Where to find high yield savings accounts right now

High yield savings accounts exist at three types of institutions: online banks (which have no physical branches), traditional banks with online divisions, and credit unions. Online banks consistently offer the highest rates because they have lower overhead costs. Traditional brick-and-mortar banks usually offer lower rates on savings, even when they have online accounts. Credit unions vary widely depending on the institution.

The banks and credit unions listed below all offer high yield savings accounts, but rates change weekly and sometimes daily. The rate you see today may not be the rate you lock in tomorrow. Before opening an account, check the current rate on the institution's website and read the terms for any monthly fees, minimum balance requirements, or withdrawal limits.

Key Takeaways

  • Online banks like Marcus, Ally, and American Express Personal Savings currently offer some of the highest rates, though rates shift frequently and you should verify the current offer before opening an account.
  • Traditional banks like Chase, Bank of America, and Wells Fargo offer high yield savings accounts, but their rates are typically lower than online-only competitors.
  • Credit unions may offer competitive rates, but you must be a member, which usually requires living or working in a specific area or belonging to a may have access to organization.
  • All accounts at FDIC-insured banks and NCUA-insured credit unions protect your money up to $250,000 per account owner, per institution.
  • Monthly fees, minimum balances, and transaction limits vary by institution and can reduce your actual earnings, so compare the full account terms, not just the advertised rate.

Online banks with high yield savings accounts

Online banks operate entirely through websites and mobile apps, with no physical locations. Because they don't maintain branch networks, they pass savings to customers through higher rates. Most online banks have no monthly maintenance fees and no minimum balance requirements.

Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360 are among the institutions currently offering competitive high yield rates. Each has different features: some offer no-penalty CDs (certificates of deposit) alongside savings accounts, some have tiered rates based on balance, and some limit the number of free transfers per month. Visit each bank's website to see the current rate, any promotional offers, and the specific terms of the account you're considering.

Online banks are FDIC-insured, meaning deposits up to $250,000 are protected if the bank fails. This protection applies per depositor, per bank—so if you have $250,000 in savings and $250,000 in a money market account at the same online bank, both are covered.

Traditional banks with online high yield savings options

Major banks like Chase, Bank of America, Wells Fargo, Citibank, and U.S. Bank all offer high yield savings accounts through their online platforms. However, their rates are typically lower than online-only competitors because these institutions maintain physical branches and higher operating costs.

The advantage of opening a high yield savings account at a traditional bank is convenience if you already have a checking account there—you can manage both accounts in one place and transfer money when ready. Some traditional banks also offer relationship bonuses (cash rewards for opening multiple accounts or maintaining a certain balance). The trade-off is that you'll earn less interest than you would at an online bank offering the same deposit amount.

All deposits at traditional banks are FDIC-insured up to $250,000 per account owner, per bank. If you have both a savings and a checking account at the same bank, the $250,000 limit applies to your combined balances in those accounts.

Credit unions offering high yield savings accounts

Credit unions are member-owned financial institutions that sometimes offer competitive savings rates. However, not all credit unions offer high yield savings accounts, and rates vary significantly from one credit union to another. To join a credit union, you typically must live in a specific geographic area, work for a particular employer, or belong to an organization the credit union serves.

You can search for credit unions in your area using the CO-OP Network locator or the Alliant Credit Union directory. Once you find a credit union you're may be able to access to join, ask about their current savings rates and account terms. Some credit unions offer tiered rates (higher rates on larger balances), while others offer a flat rate to all members.

Credit union deposits are insured by the National Credit Union Administration (NCUA), not the FDIC. NCUA coverage works the same way: up to $250,000 per account owner, per institution. If you have both a savings and a checking account at the same credit union, the $250,000 limit covers both combined.

What to compare when choosing between accounts

The advertised rate is important, but it's not the only factor that affects how much you earn. Monthly maintenance fees, minimum balance requirements, and transaction limits can all reduce your actual returns. Some accounts charge a monthly fee if your balance falls below a certain threshold. Others limit the number of transfers or withdrawals you can make per month without penalty.

Create a straightforward comparison table for the accounts you're considering. List the current APY (annual percentage yield), any monthly fees, the minimum balance to earn the advertised rate, and any restrictions on transfers or withdrawals. Calculate what you would earn in a year on your expected deposit amount, then subtract any fees. The account with the highest net earnings is usually the best choice, not necessarily the one with the highest advertised rate.

Also check whether the rate is promotional (temporary) or standard. Some banks offer a higher rate for the first few months to attract new customers, then drop the rate to a lower level. Read the account terms to see when any promotional rate expires and what the standard rate will be after that.

How to open a high yield savings account

Opening an account online takes 10 to 15 minutes. You'll need a valid government-issued ID, your Social Security number, and proof of your current address (a recent utility bill or bank statement). Most institutions verify your identity electronically and approve you when ready.

After approval, you'll link a bank account to transfer your initial deposit. This usually takes one to three business days. Some banks offer a small promotional bonus (typically $25 to $200) if you deposit a certain amount within a set timeframe—read the terms carefully to make sure you meet the requirements.

Once your account is open and funded, your interest begins accruing. Interest is usually credited monthly, though some institutions credit it daily. Check your account statement to confirm the rate you're earning matches what was advertised when you opened the account.

Frequently Asked Questions

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

Yes, but the speed depends on whether both accounts are at the same institution. If they are, transfers are usually when ready or complete within one business day. If your savings account is at a different bank than your checking account, transfers take one to three business days through the ACH system. Some banks limit the number of free transfers per month, so check your account terms.

What happens to my money if the bank fails?

Your deposits are protected up to $250,000 by the FDIC (at banks) or NCUA (at credit unions). If the institution fails, the insurance agency pays you directly, usually within a few days. This protection applies per depositor, per institution, so if you have $250,000 in savings and $250,000 in a money market account at the same bank, both are covered.

Do I have to keep a minimum balance in a high yield savings account?

Most online banks have no minimum balance requirement. Some traditional banks and credit unions require you to maintain a certain balance (often $500 to $2,500) to earn the advertised rate or to avoid a monthly fee. Check the account terms before opening to see whether a minimum applies to the account you're considering.

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

Yes. Banks can change savings rates at any time without notice. When rates fall across the industry, your rate will likely fall too. You're not locked into the rate you see when you open the account. If your rate drops significantly, you can move your money to a different institution offering a higher rate.

Are there tax implications to high yield savings accounts?

Yes. Interest earned on savings accounts is taxable income. Your bank will send you a 1099-INT form at the end of the year showing how much interest you earned. You'll report this amount on your tax return. The higher your rate, the more interest you'll owe tax on, so factor this into your planning if you're in a high tax bracket.