Who offers high yield savings accounts right now

Online banks offer the highest rates because they have lower overhead than brick-and-mortar branches. Banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank have been among the consistent leaders, though the specific rates and which bank is highest shift month to month as the Federal Reserve adjusts its benchmark rate.

Credit unions also offer high yield savings through networks like CO-OP and Allpoint, and some credit unions—particularly those with assets over $1 billion—have competitive rates. Your own credit union may or may not be one of them; you have to check their current offerings.

Traditional banks with physical branches rarely lead on rate. Chase, Bank of America, and Wells Fargo typically offer rates well below what online competitors provide, even on accounts branded as "high yield." The trade-off is that you can walk into a branch and deposit cash, which online banks cannot accept.

Key Takeaways

  • Online banks consistently offer the highest rates because they operate without the cost of physical branches.
  • Credit unions can offer competitive rates, but you need to check your own institution's current offerings since rates vary widely.
  • Traditional banks with branches typically offer lower rates than online competitors, even on accounts labeled high yield.
  • The bank offering the single highest rate changes regularly as the Federal Reserve adjusts its benchmark and banks respond.
  • You can compare current rates across institutions on financial data sites, but you should verify the rate directly with the bank before opening an account.

How online banks keep rates higher

Online banks have no tellers, no building leases, no regional management structure. That overhead savings gets passed to depositors as higher interest rates. They make money on the spread between what they pay you and what they charge borrowers for loans, not on branch traffic or ancillary services.

This model works only if customers are comfortable banking without a physical location. If you need to deposit cash regularly, an online bank is inconvenient—you would have to use a partner network or mail checks. For people who deposit by direct deposit and rarely need cash, the rate advantage is worth it.

Credit unions and membership requirements

Credit unions are member-owned cooperatives, so the account you open depends on whether you meet their membership criteria. Some credit unions are open to anyone in a geographic area. Others require you to work for a specific employer, belong to a specific organization, or have a family member who is already a member.

If you are already a member of a credit union, check their savings rates directly—they vary. A credit union with 500 members may offer a different rate than one with 50,000 members. If you are not a member, you can search for credit unions you are may be able to access to join using the CO-OP locator or by asking your employer whether they sponsor a credit union.

Banks that changed their rates recently

In 2023 and 2024, as the Federal Reserve held interest rates at their highest level in two decades, online banks competed aggressively for deposits. Marcus, Ally, American Express, and Discover all offered rates in the 4% to 5% range at various points. As the Fed began cutting rates in late 2024, those same banks lowered their rates in response.

The pattern is consistent: when the Fed raises rates, online banks raise their savings rates within days or weeks. When the Fed cuts, rates fall. The bank offering the absolute highest rate at any given moment is usually one that just raised to attract new customers, but that rate may not stay highest for long.

Comparing rates across banks

Financial data sites like Bankrate, DepositAccounts, and NerdWallet track current rates across dozens of institutions and update them regularly. These sites do not sell accounts themselves; they display what banks are currently offering. You can filter by account type, minimum balance, and other features.

The rate you see on these comparison sites should match what the bank's website shows. If it does not, go directly to the bank's website to confirm, because rates can change daily and comparison sites may lag by a few hours. Before you open an account, read the terms to confirm there are no monthly fees, no minimum balance requirements, and no restrictions on how often you can withdraw.

Regional banks and local credit unions

Some regional banks—institutions with branches in multiple states but not nationwide—offer competitive high yield savings rates. Banks like Connexus Credit Union, Connexus Bank, and some community banks in your area may have rates that rival online banks. The advantage is that you might have local branch access; the disadvantage is that you have to research each one individually because they do not appear on every comparison site.

Your local credit union's rate depends on its size, its lending portfolio, and its strategy. A small credit union may offer 4.5% while a large one offers 3.5%, or vice versa. The only way to know is to call or visit their website.

What to check before opening an account

The interest rate is not the only thing that matters. Confirm that the account is FDIC insured (for banks) or NCUA insured (for credit unions) up to $250,000. Confirm there are no monthly maintenance fees, no minimum balance to earn the stated rate, and no cap on how much you can deposit. Check whether the bank charges a fee if you withdraw money before a certain date—most high yield savings accounts do not, but some promotional accounts do.

Read the deposit methods available. If you need to deposit cash, confirm the bank has a way for you to do that—either through a branch network, ATM, or mail. If you only use direct deposit and online transfers, this matters less.

Frequently Asked Questions

Do I need to move my checking account to get a high yield savings account?

No. You can open a high yield savings account at one bank and keep your checking account at another. Many people use an online bank for savings and a traditional bank or credit union for checking, since checking accounts rarely earn meaningful interest anyway.

Can I move my money out of a high yield savings account whenever I want?

Yes. High yield savings accounts are not certificates of deposit. You can withdraw your money at any time without penalty. The rate you earn is straightforward the interest the bank pays on your balance while the money sits there.

What happens to my rate if the Federal Reserve cuts interest rates?

Your rate will likely fall, but not when ready. Banks usually lower savings rates within a few days or weeks of a Fed cut, but the timing varies. Some banks lower rates faster than others to manage their deposit costs.

Is my money safe in an online bank?

Yes, as long as the bank is FDIC insured. FDIC insurance protects your deposits up to $250,000 per account, whether the bank has branches or not. Online banks are regulated the same way as traditional banks.

Can I earn a higher rate by opening multiple accounts at the same bank?

No. The rate applies to the account type, not to how many accounts you hold. If you open two high yield savings accounts at the same bank, they both earn the same rate. However, FDIC insurance covers each account separately up to $250,000, so opening multiple accounts can increase your total insured amount.