Banks and credit unions that offer high-yield savings accounts

High-yield savings accounts are offered by online banks, traditional banks with online divisions, and credit unions. The institutions that currently offer the highest rates tend to be online-only banks because they have lower overhead costs than branches. Traditional banks with physical locations usually offer lower rates on savings accounts, though some have created online divisions with competitive rates.

Credit unions also offer high-yield savings accounts, sometimes called share savings accounts. Your ability to open one depends on membership — you must meet the credit union's field of membership requirements, which vary by institution. Some credit unions are open to anyone in a geographic area; others require employment at a specific company, membership in an organization, or family connection to an existing member.

The specific institutions offering the highest rates change as market conditions shift. Rather than naming banks that may have changed their rates since this was written, check current rate comparison sites or contact institutions directly to see what they are offering today. The rate you receive may also depend on your account balance — some banks offer higher rates only on balances above a certain threshold.

Key Takeaways

  • Online-only banks typically offer higher rates than traditional banks because they do not maintain physical branches.
  • Credit unions may offer competitive rates, but you must meet their membership requirements before you can open an account.
  • The highest available rates change frequently, so comparing current offers from multiple institutions is necessary before opening an account.
  • Some banks pay higher rates only on balances above a minimum amount, so confirm the rate structure before depositing your money.
  • You will need a government-issued ID, Social Security number, and proof of address to open an account at any institution.

What documents you need to open an account

All banks and credit unions require the same basic documents to open a savings account. You will need a government-issued photo ID (driver's license, passport, or state ID card), your Social Security number, and proof of your current address. Proof of address can be a recent utility bill, lease agreement, mortgage statement, or government mail with your name and address.

Some institutions may ask for additional information depending on how you open the account. If you open online, you may need to verify your identity through a video call or by answering security questions based on your credit history. If you open in person at a branch or credit union office, the staff will review your documents directly.

A few institutions ask about your employment or source of income, though this is not required to open a savings account. If asked, you can provide your employer's name and your job title. Self-employed people can list their business name or simply state that they are self-employed.

Opening an account online versus in person

Online account opening is faster and can be completed in 10 to 20 minutes from your computer or phone. You upload photos of your ID and proof of address, enter your personal information, and verify your identity through the bank's security process. The account is usually active within one business day, though some banks take up to three business days.

Opening in person at a branch or credit union office takes 20 to 45 minutes. A staff member reviews your documents, enters your information into their system, and may discuss account features with you. Your account is typically active the same day or the next business day. In-person opening can be useful if you have questions about the account or if you want to deposit cash immediately.

Some credit unions and smaller banks do not offer online account opening and require you to visit in person. Check the institution's website or call before you plan a visit to confirm their process.

Linking a checking account or external bank account

Most high-yield savings accounts allow you to link an external bank account for transfers. This is useful if you want to move money between institutions or if you want to set up automatic transfers from your paycheck. You will need the routing number and account number of the external account.

When you link an external account for the first time, the bank usually verifies ownership by making two small deposits (typically under $1 each) to that account. You then confirm the amounts in your online banking portal. This process takes two to five business days. Some banks skip this step if you link an account at the same institution.

Transfers between your new high-yield savings account and a linked external account usually take one to three business days. Some banks offer faster transfers for an additional fee, though this is uncommon for savings accounts.

Minimum deposit and account maintenance requirements

Minimum opening deposits vary by institution. Many online banks have no minimum deposit — you can open the account with $0 and deposit money later. Some banks require $1 to $25 to open. A few require $500 or more. Check the specific bank's requirements before you open.

Most high-yield savings accounts have no monthly maintenance fees. Some institutions charge a fee if your balance falls below a certain amount, though this is less common among online banks. Credit unions may charge annual membership fees separate from account fees, depending on the institution.

Some banks limit the number of withdrawals or transfers you can make from a savings account per month. Federal regulations previously capped this at six per month, but that rule was suspended. Individual banks may still enforce their own limits, so check the account terms before opening.

What happens after you open the account

After your account is open, you can deposit money by transferring from another bank account, depositing a check through mobile deposit (if the bank offers it), or making an in-person deposit at a branch or ATM (if available). Online-only banks typically do not have ATMs or branches, so you will need to transfer money from another account or use mobile check deposit.

Your interest rate is set when you open the account and is based on the rate the bank was offering that day. If rates change after you open, your rate may change too — banks can lower rates without notice, though they typically notify customers before doing so. You can move your money to a different bank if rates drop significantly.

You can access your account through the bank's website or mobile app. Most banks offer online bill pay, account alerts, and the ability to freeze your account if your card is lost or stolen. Credit unions may offer additional services like financial counseling or loan products.

Frequently Asked Questions

Can I open a high-yield savings account if I have bad credit?

Yes. Banks do not check your credit score to open a savings account. They may check your banking history through ChexSystems, a system that tracks closed accounts and fraud, but a poor credit score will not prevent you from opening a savings account.

Do I need to have a checking account at the same bank?

No. You can open a high-yield savings account at any bank or credit union without having a checking account there. You can link an external checking account from a different institution for transfers.

What if I want to close the account later?

You can close a high-yield savings account at any time by contacting the bank or credit union. Withdraw or transfer your balance first, then request account closure. Most institutions close the account within one to five business days and send you written confirmation.

Can I open more than one high-yield savings account?

Yes. You can open multiple high-yield savings accounts at different banks. Some people do this to keep money separated for different goals or to take advantage of different rate offers. There are no legal limits on the number of savings accounts you can hold.

How do I know if an online bank is safe?

Check whether the bank is insured by the FDIC (Federal Deposit Insurance Corporation) or the NCUA (National Credit Union Administration). FDIC insurance covers up to $250,000 per account holder per bank. NCUA insurance covers up to $250,000 per account holder per credit union. This information is displayed on the bank's website, usually in the footer or in their disclosures.