Where to find a high yield savings account

High yield savings accounts are offered by online banks, credit unions, and some traditional banks with online divisions. Online banks tend to have the highest rates because they have lower overhead costs than brick-and-mortar branches. You'll find them through a web search, but the rate you see today may change tomorrow — banks adjust rates weekly or even daily based on what the Federal Reserve does and what competitors offer.

The banks that consistently rank highest in rate comparisons include Marcus by Goldman Sachs, American Express Personal Savings, Ally Bank, and Capital One 360. Credit unions like Connexus and Pentagon Federal also offer competitive rates, though you may need to meet membership requirements. Traditional banks like Chase and Bank of America offer high yield savings accounts, but their rates are typically lower than online-only competitors.

The difference between a 4.5% rate and a 5.35% rate matters more than it sounds. On $10,000, that's roughly $85 more per year. On $50,000, it's $425 more per year. Rates change constantly, so comparing three or four options before you open an account takes 15 minutes and can save you hundreds of dollars annually.

Key Takeaways

  • Online banks typically offer higher rates than traditional banks because they have fewer physical locations and lower operating costs.
  • Rates change frequently and vary by bank, so the highest rate today may not be the highest rate next month.
  • You can open most high yield savings accounts entirely online with just an email address and a few minutes of your time.
  • The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 at each bank, so your money is protected even if the bank fails.
  • Some credit unions offer competitive rates but may require you to live in a certain area or work in a specific industry to join.

Online banks with consistently competitive rates

Marcus by Goldman Sachs, American Express Personal Savings, and Ally Bank have maintained rates in the top tier for the past year. Marcus requires no minimum deposit and no monthly fees. American Express requires you to be a cardholder, though you don't need to use the card to earn the advertised rate. Ally has no minimum and no fees, and also offers a checking account if you want to consolidate.

Capital One 360 (formerly ING Direct) offers a high yield savings account with no minimum deposit and no monthly maintenance fee. Vio Bank and Connexus Credit Union are smaller but have matched or beaten the rates of larger competitors. Rates at all of these institutions change weekly, so the order shifts depending on when you check.

When you're comparing, look at the annual percentage yield (APY), not just the interest rate. The APY includes compounding and is the actual return you'll earn. Also check whether the bank charges a monthly fee, requires a minimum deposit, or limits how many withdrawals you can make per month — some older accounts still have withdrawal limits, though federal rules no longer require them.

Traditional banks with online high yield options

Chase, Bank of America, Wells Fargo, and Citibank all offer high yield savings accounts, usually through their online banking platforms. Their rates are typically 0.5% to 1.5% lower than online-only banks. The trade-off is that you may have access to physical branches, and you can manage your high yield savings account alongside a checking account at the same institution.

If you already have a checking account at a traditional bank, opening a high yield savings account there takes minutes and you won't need to verify your identity again. However, the rate difference is significant enough that it's worth opening an account at an online bank even if you keep your checking account elsewhere. You can transfer money between banks in one to three business days, so the inconvenience is minimal.

Credit unions and membership requirements

Connexus Credit Union, Pentagon Federal Credit Union, and Connexus Credit Union offer rates that compete with the best online banks. The catch is that you must meet membership requirements. Connexus is open to anyone in the United States who opens a savings account with at least $25. Pentagon Federal requires you to work for the federal government, military, or a contractor, or to be a family member of someone who does.

If you're may be able to access for a credit union account, it's worth checking their rates. Credit unions are member-owned, so they often prioritize competitive rates over profit margins. Some credit unions also offer better customer service than large online banks, though this varies widely by institution.

How to compare rates across banks

Use a rate comparison site like Bankrate, DepositAccounts, or DepositAccounts to see current rates side by side. These sites update daily or weekly and show you the APY, minimum deposit, and any fees. You can also visit each bank's website directly — the rate listed there is the official rate, while comparison sites may lag by a day or two.

When you find an account that interests you, read the terms and conditions for anything unusual. Most high yield savings accounts are straightforward, but some have limits on how much you can deposit per month or require you to maintain a minimum balance. Check whether the bank is FDIC-insured (it should be) and whether it offers online account opening (most do).

Open an account at whichever bank has the highest rate at the time you're ready to deposit money. You can always move your money to a different bank later if rates change dramatically. Transfers between banks take one to three business days and don't cost anything.

FDIC insurance and account safety

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per bank. This means if the bank fails, your money is protected up to that limit. Most high yield savings accounts are FDIC-insured, but you should confirm this before you open an account — it's usually stated clearly on the bank's website.

If you have more than $250,000 to save, you can open accounts at multiple banks to keep all your money insured. For example, $250,000 at Bank A and $250,000 at Bank B are both fully insured. You can also open a joint account with another person, which gives you an additional $250,000 of coverage at the same bank.

Credit unions are insured by the National Credit Union Administration (NCUA), which works the same way — up to $250,000 per member, per credit union. The protection is equivalent to FDIC insurance.

Moving money between banks

Once you've opened a high yield savings account, you'll need to move money into it. You can do this by linking your checking account at another bank and initiating a transfer online. The transfer usually takes one to three business days. Some banks also accept wire transfers, which are faster but may cost $10 to $25.

You can also deposit money by mail if the bank provides a deposit envelope, though this is slower and less common now. Most online banks don't accept cash deposits, so if you need to deposit cash, you'll have to withdraw it from an ATM at another bank first or use a check.

Once money is in your high yield savings account, you can withdraw it the same way — by transferring it back to your checking account or by requesting a wire transfer. Withdrawals take one to three business days. Some banks offer ATM access through a network, but this is less common for high yield savings accounts.

Frequently Asked Questions

Can I withdraw money from a high yield savings account whenever I want?

Yes, you can withdraw money anytime without penalty. Federal rules no longer limit withdrawals, though transfers to other banks take one to three business days. Some banks offer ATM access or debit cards for faster access, but this is less common.

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

Banks adjust their rates within days or weeks of a Federal Reserve change. If rates go up, your bank will usually raise its rate. If rates go down, your bank will lower its rate. You're not locked into a rate — it changes automatically.

Do I need a minimum deposit to open a high yield savings account?

Most online banks have no minimum deposit requirement. You can open an account with $1 and deposit more later. Some credit unions or traditional banks may require a minimum, usually $25 to $100, so check before you open.

Is my money safe at an online bank I've never heard of?

If the bank is FDIC-insured, your money is protected up to $250,000 even if the bank fails. Check the bank's website or the FDIC's bank search tool to confirm it's insured. Online banks are regulated the same way as traditional banks.

Can I have high yield savings accounts at multiple banks?

Yes. You can open accounts at as many banks as you want. This lets you spread your money across multiple institutions for insurance coverage and compare rates. Moving money between banks takes one to three business days.