Banks and credit unions that offer high yield savings accounts

High yield savings accounts live at online banks, traditional banks with online divisions, and credit unions. The accounts that pay the highest rates are almost always at online-only banks—companies like Marcus, Ally, American Express Personal Savings, and Discover Bank—because they have lower overhead costs than brick-and-mortar branches. You can open one in 10 to 15 minutes from your phone or computer.

Traditional banks like Chase, Bank of America, and Wells Fargo also offer high yield savings accounts now, but their rates are typically lower than online competitors. Credit unions sometimes offer competitive rates, especially if you're a member already, but you'll need to meet membership requirements first—often tied to your employer, location, or a group affiliation.

The tradeoff is access: online banks have no physical branches, so deposits and withdrawals happen through transfers, mobile deposits, or ATM networks. If you need to walk into a location and hand someone cash, a traditional bank or credit union is your only option. If you're comfortable with digital banking, online banks almost always win on rate.

Key Takeaways

  • Online-only banks consistently offer the highest rates because they don't operate physical branches, and you can open an account in minutes from your phone.
  • Traditional banks and credit unions offer high yield savings accounts too, but rates are usually lower than online competitors.
  • You'll need a checking account at the same bank or a linked external account to move money in and out, depending on the bank's rules.
  • Rates change frequently, so the highest-paying account today may not be the highest next month—check current rates before you open.
  • All deposits are insured up to $250,000 per account holder at FDIC-insured banks and NCUA-insured credit unions, regardless of the rate.

What you need to open an account

Most banks require the same basic information: your Social Security number, date of birth, current address, and a government-issued ID. You'll also need a way to fund the account—either a linked checking account at another bank or a debit card. Some banks let you start with a small deposit (often $0 to $25); others have no minimum.

The process is almost entirely digital at online banks. You upload a photo of your ID, answer identity verification questions, and link an external bank account or card. The whole thing takes 10 to 20 minutes. A few online banks still require a phone call to verify your identity, but this is becoming rare.

At traditional banks and credit unions, you may be able to open online or in person. In-person opens take longer but let you ask questions face-to-face. Online opens are faster but require you to navigate the bank's website or app on your own.

How to compare rates across banks

Rates on high yield savings accounts change weekly or even daily, so the best account for you depends on what's current right now. The most reliable places to check current rates are Bankrate, DepositAccounts, and the banks' own websites. These sites let you filter by account type and sort by APY (annual percentage yield).

When you compare, look at the APY, not just the interest rate—APY includes compounding and tells you what you'll actually earn. Also check whether the rate is promotional (good for a limited time) or standard (ongoing). A promotional rate might be 5.35% for three months, then drop to 4.50%. Read the fine print or call the bank to ask.

Don't chase a 0.10% difference if it means opening an account at a bank you don't trust or one with a clunky app. You'll be moving money in and out regularly, so the experience matters. A 4.75% rate at a bank you actually use beats 5.00% at one you'll abandon in six months.

Moving money in and out of a high yield savings account

High yield savings accounts are designed to hold money, not to be your primary checking account. Most banks limit you to six transfers or withdrawals per month (though this rule is less enforced now than it was before 2020). Transfers between your own accounts at the same bank usually don't count against this limit.

To fund the account, you'll link a checking account at another bank and transfer money electronically. This takes one to three business days. Some banks let you deposit checks by taking a photo with your phone, which clears in one to two business days. A few still require you to mail checks in.

To withdraw money, you transfer it back to your linked checking account (one to three business days) or request a check. ATM withdrawals are rare at online banks because they don't have branches. If you need cash regularly, keep your high yield savings separate from your spending money—use a checking account for that.

FDIC and NCUA insurance protection

Every deposit in a high yield savings account at an FDIC-insured bank is protected up to $250,000 per account holder, per bank. This means if the bank fails, you get your money back. Credit unions offer the same protection through the NCUA (National Credit Union Administration) up to $250,000 per account holder, per credit union.

The $250,000 limit applies per bank, not per account. If you have a high yield savings account and a checking account at the same FDIC-insured bank, they share the $250,000 protection. If you have $150,000 in savings and $100,000 in checking at the same bank, only $250,000 is insured (the first $250,000 of your combined deposits).

If you have more than $250,000 to save, you can open accounts at multiple banks to keep everything insured. For example, $250,000 at Bank A and $250,000 at Bank B are both fully protected. This is a rare situation, but it's worth knowing if you're saving a large amount.

Red flags and account features to watch

Avoid banks that charge monthly maintenance fees on high yield savings accounts—most don't, and you shouldn't pay for the privilege of saving. Also watch for banks that require a minimum balance to earn the advertised rate. Some banks pay 5.00% on balances above $25,000 but only 4.50% on smaller amounts. Read the terms carefully.

Check whether the bank offers a linked checking account and whether transfers between them are free and when ready. Some online banks make it straightforward; others charge for transfers or make you wait days. If you plan to move money frequently, this matters.

Look at the bank's customer service options too. Most online banks offer chat and email support, but phone support hours vary. If you think you'll need to call, check whether the bank has 24/7 phone support or limited hours. A few online banks have no phone support at all.

Frequently Asked Questions

Can I open a high yield savings account if I don't have a checking account?

Most banks require a linked external account to fund your savings account, which is usually a checking account at another bank. A few online banks let you open without one, but you'll need to provide a debit card or wait for a check to arrive. Call the bank directly if their website isn't clear on this.

How long does it take to open an account and start earning interest?

Opening takes 10 to 20 minutes online. Your first deposit may take one to three business days to clear, depending on how you fund it. Interest accrues daily once the deposit clears, so you'll see your first earnings within a few days after that.

What happens if the bank lowers its rate after I open?

Banks can lower rates at any time without notice. Your existing balance will earn the new, lower rate. This is why it's worth checking rates periodically—if a competitor offers significantly more, you can open a new account there and move your money. Switching accounts takes a few days but costs nothing.

Do I have to keep a minimum balance?

Most high yield savings accounts have no minimum balance requirement. Some banks require $0 to open; others ask for $1 or $25. Once the account is open, you can keep any amount in it. Check the bank's terms page to confirm before you open.

Can I use a high yield savings account as my main checking account?

Technically yes, but it's not designed for it. High yield savings accounts usually don't come with a debit card, and most banks limit you to six withdrawals per month. Use a checking account for everyday spending and a high yield savings account to hold money you're saving.