Best High-Yield Savings Accounts

What is a High-Yield Savings Account?

A high-yield savings account (HYSA) offers significantly higher interest rates than traditional savings accounts. While most brick-and-mortar banks pay around 0.01% APY, high-yield accounts from online banks typically offer 4-5% APY or more.

The difference is dramatic: $10,000 in a traditional account earns about $1/year. In a high-yield account at 4.5% APY, you'd earn $450.

Top High-Yield Savings Accounts

What to Look For

Why Online Banks Offer Higher Rates

Online banks don't have the overhead costs of physical branches - no buildings to maintain, fewer employees to pay, no prime real estate to rent. They pass these savings on to customers through higher interest rates and lower fees.

This doesn't mean online banks are less safe. They're backed by the same FDIC insurance as traditional banks, protecting your deposits up to $250,000.

How to Open a High-Yield Savings Account

1. Compare current rates

   Rates change frequently. Check multiple banks before deciding.

2. Gather required documents

   You'll need: SSN, government ID, and a funding source.

3. Apply online

   Most applications take 10-15 minutes to complete.

4. Fund your account

   Transfer money from an existing bank account.

5. Set up automatic transfers

   Build your savings automatically each month.