Banks and credit unions that offer HYSAs

High yield savings accounts are offered by online banks, traditional banks with online divisions, and credit unions. Online banks typically offer the highest rates because they have lower overhead costs than brick-and-mortar branches. Banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank are common examples, though the list changes as rates shift.

Traditional banks — Chase, Bank of America, Wells Fargo, Citibank — also offer online savings accounts, but their rates are usually lower than online-only competitors. Credit unions often have competitive rates and may offer better terms to members, though you must meet membership requirements (which vary by union). You can search credit unions in your area through the CO-OP Network or Alliant Credit Union's locator tool.

The rate you receive depends on the bank's current offer and your account balance. Rates change frequently, sometimes weekly. Comparing rates across multiple banks before opening an account takes 10 to 15 minutes and can mean hundreds of dollars in annual interest difference.

Key Takeaways

  • Online banks typically pay higher interest rates than traditional banks because they have fewer physical locations and lower costs to run.
  • You can open an account online in most cases without visiting a branch, using your Social Security number, proof of identity, and an initial deposit.
  • Rates change frequently, so comparing current offers from three to five banks before opening an account is worth the time.
  • Credit unions may offer competitive rates if you meet membership requirements, which often depend on where you live or work.
  • FDIC insurance covers deposits up to $250,000 per account holder per bank, so splitting large amounts across multiple banks protects your money.

What you need to open an account

Most banks let you open an HYSA online without visiting a branch. You will need a valid government-issued ID (driver's license, passport, or state ID), your Social Security number, and proof of your current address. A utility bill, lease, or bank statement from the past 60 days usually works for address verification.

You will also need an initial deposit, which ranges from $0 to $25,000 depending on the bank. Some online banks require no minimum; others ask for $500 or more. Check the bank's website for the current minimum before starting the application.

The application itself takes 10 to 20 minutes. You provide personal information, verify your identity (some banks use a video call or text message verification), and link a funding source — usually a checking account at another bank. The account typically opens within one to three business days, though some banks open it immediately.

How to compare rates and terms

Interest rates on HYSAs are not fixed. They change based on the Federal Reserve's actions and each bank's business decisions. A rate that is highest today may not be highest next month. Before opening an account, check the current Annual Percentage Yield (APY) on the bank's website, not on a rate-comparison site, because websites sometimes lag behind actual rates by a day or two.

Beyond the rate, check whether the bank charges monthly fees, requires a minimum balance to earn the stated rate, or limits how many withdrawals you can make per month. Some banks charge $5 to $10 monthly maintenance fees; others charge nothing. A few banks reduce your rate if your balance falls below a threshold (often $2,500 or $10,000).

Write down the APY, any fees, minimum balance requirements, and withdrawal limits for three to five banks you are considering. The difference between a 4.50% APY and a 5.35% APY on $10,000 is about $85 per year — enough to matter, and enough to justify spending 15 minutes comparing.

Online banks versus traditional banks

Online banks (also called direct banks) have no physical branches. You manage your account through a website or mobile app, deposit checks by photographing them, and withdraw money by transferring to another bank or using an ATM network. Online banks pay higher rates because they do not pay for building leases, tellers, or branch staff.

Traditional banks have branches where you can walk in and speak to someone. Their online savings accounts usually pay less than online banks, but you have the option to visit a branch if you need help. Some people prefer this; others find it unnecessary and choose the higher rate instead.

A middle ground exists: some traditional banks (like Ally, which is owned by a major bank but operates online-only) offer online-only accounts with rates close to pure online banks. Your choice depends on whether you value the option of a physical branch enough to accept a lower rate.

FDIC insurance and account safety

Money in an HYSA at an FDIC-insured bank is protected up to $250,000 per account holder per bank. This means if the bank fails, the federal government reimburses you up to that limit. If you have more than $250,000 to save, you can open accounts at multiple banks to keep all your money insured.

All major online banks and traditional banks are FDIC-insured. You can verify a bank's insurance status on the FDIC's website by searching for the bank's name. Credit unions are insured by the National Credit Union Administration (NCUA) up to the same $250,000 limit.

Your account is also protected by the bank's security measures. Online banks use encryption, two-factor authentication, and fraud monitoring. You should use a strong, unique password and enable two-factor authentication (usually a code sent to your phone) for extra protection.

Moving money in and out

Once your account is open, you fund it by transferring money from another bank account. This usually takes one to three business days. Some banks offer faster transfers (same-day or next-day) if you link your account and verify it first.

Withdrawing money works the same way: you transfer from your HYSA to your checking account at another bank. The transfer typically takes one to three business days. If you need cash immediately, you can use an ATM network — many online banks partner with ATM networks so you can withdraw without fees, though this varies by bank.

Some banks limit how many transfers or withdrawals you can make per month (often six), though this rule is less common now than it was before 2020. Check the bank's terms before opening an account if frequent transfers matter to you.

Frequently Asked Questions

Can I open an HYSA if I have bad credit?

Yes. Banks do not check your credit score to open a savings account. They may check ChexSystems (a banking history report) to see if you have had problems with previous accounts, but a savings account does not require a credit check. If you have been denied accounts before, ask the bank directly whether ChexSystems is a factor.

What happens to my money if the bank goes out of business?

The FDIC takes over and reimburses you up to $250,000. This process usually takes a few weeks. Your money is safe as long as the bank is FDIC-insured, which you can verify on the FDIC website before opening an account.

Can I withdraw money whenever I want?

Yes, though transfers to another bank usually take one to three business days. ATM withdrawals are faster if your bank partners with an ATM network. Some banks limit the number of transfers per month, so check the terms before opening an account if you plan to move money frequently.

Do I need to keep a minimum balance?

It depends on the bank. Some require no minimum; others ask for $500 or more to earn the stated rate. If your balance falls below the minimum, the bank may charge a fee or reduce your rate. Check the bank's current terms on its website.

Can I have multiple HYSAs at different banks?

Yes. Many people open accounts at two or three banks to compare rates, earn higher interest on larger amounts, or organize money for different goals. Each account is insured separately up to $250,000, so this is a safe way to protect larger savings.