Where to find high yield savings accounts

High yield savings accounts exist at online banks, credit unions, and a few traditional brick-and-mortar banks. Online banks offer the highest rates because they have lower overhead costs than banks with physical branches. Credit unions sometimes match or beat online bank rates for their members. Traditional banks with branches rarely offer competitive rates on savings, though some have started adding high yield options to keep customers.

The institutions that offer these accounts fall into three categories: online-only banks (no branches), online divisions of larger banks, and credit unions. Each type has different requirements for opening an account, different insurance protections, and different ways to move money in and out.

Key Takeaways

  • Online banks typically offer the highest rates because they do not maintain physical branch networks and pass those savings to depositors.
  • Credit unions often offer competitive rates to members and may have lower minimum balance requirements than online banks.
  • All deposits at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per account owner per institution.
  • You can open most online savings accounts entirely through a website or app, with funding through bank transfer or ACH deposit.
  • Rates change frequently and vary by institution, so comparing current offers before opening an account matters more than the name of the bank.

Online banks and their rate structures

Online banks like Marcus (owned by Goldman Sachs), Ally Bank, American Express Personal Savings, and Discover Bank have built their business around offering savings rates that compete with money market funds and short-term bonds. These institutions have no branches, no tellers, and no physical infrastructure. That cost difference shows up as higher rates on savings accounts.

Most online banks set their rates based on the Federal Reserve's actions and market competition. When the Fed raises rates, online banks typically raise their savings rates within days or weeks. When the Fed cuts rates, online banks cut theirs as well, though sometimes more slowly. The rate you see advertised is the rate all new customers get—there is no negotiation, no tiered pricing based on how much you deposit, and no loyalty bonus for staying longer.

Opening an account at an online bank requires a valid government ID, proof of address (usually a recent utility bill or bank statement), and a way to fund the account. Most online banks let you link an external bank account and transfer money electronically, or deposit a check by photograph through their app. Some require an initial deposit before the account opens; others let you open the account first and fund it later.

Credit unions as an alternative

Credit unions are member-owned cooperatives, not corporations. They are regulated differently than banks and often have more flexibility in how they set rates. Some credit unions offer high yield savings rates that match or exceed online banks, especially if you meet membership requirements or maintain a minimum balance.

Credit union membership usually requires living or working in a specific geographic area, belonging to a certain employer or profession, or being related to a current member. Some credit unions have opened membership to anyone in the United States through occupational or associational ties. Before opening an account, check whether you meet the membership requirements.

Credit union deposits are insured by the National Credit Union Administration (NCUA), not the FDIC, but the protection is the same: $250,000 per account owner per institution. Credit unions typically offer lower minimum balances than online banks and sometimes waive monthly fees more readily. The trade-off is that credit unions often have fewer ATMs and less developed mobile apps than large online banks.

Traditional banks with high yield options

Some large traditional banks—including Chase, Bank of America, and Wells Fargo—have introduced high yield savings accounts in recent years, though their rates are usually lower than online banks or credit unions. These accounts exist partly to compete for deposits and partly to keep customers from moving money to online institutions.

The advantage of opening a high yield savings account at a bank where you already have a checking account is convenience: one login, one customer service line, and the ability to move money between accounts when ready. The disadvantage is that the rate will almost certainly be lower than you would get elsewhere. If you are comparing rates, check the actual APY (annual percentage yield) rather than assuming a traditional bank's offer is competitive.

What to check before opening an account

Before you open a high yield savings account anywhere, verify three things: the current APY, the FDIC or NCUA insurance status, and the minimum balance requirement. The APY changes frequently, so a rate that was competitive last month may not be now. Check the institution's website directly rather than relying on comparison sites, which sometimes lag behind actual rate changes.

Confirm that the institution is FDIC-insured (for banks) or NCUA-insured (for credit unions). You can verify FDIC insurance by searching the FDIC's BankFind tool on fdic.gov. You can verify NCUA insurance by searching the NCUA's credit union locator on ncua.gov. Insurance protects your money if the institution fails, but only up to $250,000 per account owner per institution.

Check the minimum balance requirement. Some online banks require $0 to open an account; others require $25 or $100. Some credit unions require membership fees or minimum balances to earn the advertised rate. These details matter if you are starting with a small deposit.

How to move money between accounts

Once you open a high yield savings account, you will need a way to move money in and out. Most online banks accept ACH transfers (electronic transfers from another bank account), which usually take one to three business days. Some also accept wire transfers, which are faster but may carry a fee.

Many online banks let you deposit checks by taking a photograph with your phone and uploading it through their app. This is called mobile check deposit. The funds typically appear in your account within one to two business days, though the bank may hold the deposit longer if the check is large or if you are a new customer.

Withdrawals from a high yield savings account work the same way: you can transfer money back to another bank account, request a wire transfer, or use a debit card if the account comes with one. Some online banks do not issue debit cards for savings accounts, so confirm this before opening if you think you might need one.

Frequently Asked Questions

Is my money safe in an online bank?

Yes, if the bank is FDIC-insured. You can verify this on the FDIC's website. Your deposits are protected up to $250,000 per account owner per institution, the same as at a traditional bank. Online banks are regulated by the same federal agencies as brick-and-mortar banks.

Can I withdraw money from a high yield savings account anytime?

Yes, but there may be limits. Federal regulations previously capped withdrawals at six per month, though that rule was suspended. Individual banks may still impose limits or charge fees for excess withdrawals. Check the account terms before opening to see what the institution's policy is.

What happens if the rate drops after I open an account?

The bank can lower the rate on your account, and you have no contractual right to the old rate. If rates drop and you want a better offer elsewhere, you can close the account and move your money to another institution. There is no penalty for closing a savings account.

Do I need a checking account to open a high yield savings account?

No. You can open a savings account at any bank or credit union without having a checking account there. You will need a way to fund it—usually by linking an external bank account or depositing a check—but the savings account can stand alone.

How do I compare rates between institutions?

Visit each bank's website directly and look for the APY listed on the savings account product page. Write down the current rate, the minimum balance, and any fees. Compare the actual numbers rather than relying on marketing language. Rates change frequently, so check again before you decide to move money.