Our top picks for high-yield savings accounts
If your savings is sitting in a traditional bank account, it could be earning far less interest than it should. The best high-yield savings accounts pay as much as 10x the national average APY, helping your money grow faster without market risk.
However, while earning the highest rate possible on your savings is important, it's not the only factor you should consider. Our team compared today's high-yield savings accounts offered by federally insured financial institutions and identified the 10 best based on interest rate, fees, account features, customer service, and more (see our methodology here ).
Benefits of opening a high-yield savings account
Opening a high-yield savings account comes with many benefits you shouldn't overlook. For one, these accounts provide a safe place to store your money while earning interest, helping your savings grow over time. Savings accounts also encourage financial discipline by separating money meant for future goals from everyday spending.
Plus, as long as you open an account with a reputable, federally insured bank or credit union, your deposits are protected in case the financial institution fails — up to $250,000 per depositor, per institution, per ownership category.
How high-yield savings accounts work
A high-yield savings account functions similarly to a traditional savings account . The main difference is that HYSAs offer much higher interest rates. In fact, some of the best HYSAs offer rates 10 times higher than the national average savings account rate .
Keep in mind that some banks may require you to maintain a minimum balance to earn interest or avoid a monthly service charge. However, there are plenty of accounts that offer the same rate regardless of your balance and do not charge monthly fees. When shopping around for an HYSA, it's important to compare multiple offers and select an account that fits your needs.
It's also important to note that HYSAs come with variable interest rates. That means your bank or credit union can change your rate at any time. Generally, interest rates increase when the economy is doing well, and the Federal Reserve raises its benchmark rate. Conversely, rates can drop when the economy weakens, and the Fed lowers rates.
Pros and cons of high-yield savings accounts
There are many benefits of opening a high-yield savings account, particularly the opportunity to earn a competitive rate on your balance. However, there are some drawbacks to consider as well. Let's take a closer look at the pros and cons of high-yield savings accounts :
Pros:
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Higher interest rates:You'll generally earn more interest than you would with a traditional savings account.
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Compound interest:Compounding interest helps your balance grow more quickly. Interest in an HYSA may compound daily or monthly.
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Accessibility:These accounts are a great place to stash money you may need to access quickly, such as your emergency fund. Other types of accounts, such as certificates of deposit (CDs), offer high rates but impose penalties if you withdraw money prior to the maturity date.
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Minimal or no fees:Fees with high-yield savings accounts are rare, so you won't need to worry about these costs eating into your balance.
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Low-risk:High-yield savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). Plus, unlike investments, account performance isn't tied to the stock market and you can't lose money, making HYSAs a low-risk option for your money.
Cons:
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Variable rates:Your savings account's APY can increase or decrease over time. While individual banks set rates at their discretion, these rates are loosely tied to the federal funds rate. Banks may choose to increase or decrease savings rates when the Fed adjusts its target rate.
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Minimum balance requirement:Some accounts may have a high minimum opening deposit.
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Tiered APYs:Some banks may have tiered APYs depending on the deposit amount. For instance, you may earn a higher rate if you deposit $5,000 vs. $100. So, while a $5,000 deposit isn't necessarily required, it could result in a better APY.
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Better for short-term savings:High-yield savings accounts aren't the best choice for long-term savings goals, like retirement. Investment accounts tend to offer higher long-term returns.
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Withdrawal limits may apply:Depending on your bank, you may have a limit on monthly withdrawals.
Alternatives to high-yield savings accounts
An HYSA can be a smart place to store your savings, but it's not your only option. Here's a look at some of the alternatives you may want to consider.
Money market accounts (MMAs)
Money market accounts and high-yield savings accounts both offer higher interest rates compared to traditional savings accounts. However, these accounts come with different features. For instance, MMAs typically offer check-writing abilities and debit cards, though they might require higher minimum balances to earn the top interest rates. High-yield savings accounts, on the other hand, are designed to store your savings longer-term with fewer withdrawal options.
Certificates of deposit (CDs)
Like high-yield savings accounts, CDs can provide a safe place to store your savings while earning a competitive return. The big difference is that CDs require you to lock in your money for a set period, known as the term, which can range from a few months to several years. For this reason, CDs are a better option for people who don't need immediate access to their funds.
Cash management accounts (CMAs)
Cash management accounts are typically offered by brokerage firms and combine features of checking, savings, and investment accounts. Both HYSAs and CMAs can offer competitive yields and federal insurance on eligible deposits. However, HYSAs are generally the better choice for savers focused on maximizing interest, while CMAs are better suited for investors who want to manage spending, saving, and investing from a single platform.
Money market funds (MMFs)
Not to be confused with a money market account , a money market fund is a mutual fund that invests in short-term debt securities, such as Treasury bills and corporate debt. While money market funds can offer competitive rates and potential tax advantages in some cases, they are investments rather than bank accounts, meaning they are not FDIC-insured and carry a small amount of investment risk. Money market funds may appeal to investors who are comfortable with minimal risk in exchange for potentially higher after-tax returns or the convenience of keeping cash in a brokerage account.
Bonds
Bonds provide a fixed rate of return if held to maturity and may outperform HYSAs over longer periods. But they typically require locking up your money or selling before maturity, which can result in gains or losses depending on interest rates. Bonds can be especially useful for retirement income, portfolio diversification, and periods when interest rates are expected to decline.
Treasury bills (T-bills)
Treasury bills are short-term U.S. government securities with fixed yields and terms ranging from four to 52 weeks. While they require you to leave your money invested until maturity to earn the full return, they offer the advantage of being exempt from state and local income taxes, which can make them especially attractive for savers in high-tax states.
Multi-year guaranteed annuities (MYGAs)
A MYGA is an insurance product that locks in a guaranteed (or fixed) interest rate for a term of three to 10 years, often offering higher yields than HYSAs and the added benefit of tax-deferred growth. However, withdrawals are restricted and early access can trigger surrender charges and potential tax penalties. MYGAs are generally the better choice for long-term savings you won't need for several years, especially if you're approaching retirement.
Investing
High-yield savings accounts and investing serve vastly different financial goals and risk profiles. HYSAs provide stable, low-risk returns with interest rates higher than traditional savings accounts. They're best for short-term financial goals or emergency funds due to their liquidity and FDIC insurance. Investing in bonds, stocks, mutual funds, and other securities typically involves higher risk — but also the potential for higher returns over the long run. Investing your money makes more sense for long-term financial goals like retirement since the returns generally outpace inflation and help grow wealth over time.
Overview of today's high-yield savings account rates
Over the past decade, savings account interest rates have experienced significant fluctuations. In the mid-2010s, rates were considerably low — below 1% — thanks to the Federal Reserve's efforts to stimulate economic growth following the 2008 financial crisis. As the economy recovered, the Fed incrementally increased the federal funds rate between 2015 and 2018, leading to a gradual rise in savings account rates. However, the onset of the COVID-19 pandemic in 2020 prompted a return to near-zero interest rates to support economic activity, resulting in a decline in savings yields.
In 2022, as inflation surged to its highest level in decades, the Fed began an aggressive series of rate hikes, raising its benchmark federal funds rate from near zero to more than 5% by mid-2023. Banks responded by steadily increasing the APYs on savings accounts to attract deposits. By late 2023 and into early 2024, many of the best HYSAs were offering yields above 5% APY.
The trend began to reverse in late 2024 when the Fed shifted from raising rates to lowering them as inflation cooled. After several rate cuts in late 2024 and additional cuts in 2025, banks gradually reduced the APYs they offered on savings accounts. While top HYSAs no longer consistently pay 5% or more, many still offer yields in the 3% to 4% range — well above the national average for traditional savings accounts.
Looking ahead, HYSA rates will likely continue to move in tandem with the Fed's decisions. If the Fed resumes cutting rates, banks will probably lower savings yields further. Conversely, if inflation remains elevated and the Fed keeps rates high — or raises them again — banks could maintain or even increase their HYSA rates. Because banks can adjust savings rates at any time, it's a good idea to compare accounts periodically to ensure you're still earning a competitive return on your cash.
Tips for finding the best high-yield savings account
Competitive rates are great, but considering other factors besides APY can help you find an account that best meets your needs.
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New account offers:Look at high-yield savings account offers for new depositors with high APYs, low to no account fees, and are free to open. High savings account rates will earn you more interest, but the financial institution offering those rates might not necessarily be the best option for your finances, so do your research before opening an account.
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Required deposits:Research applicable deposit requirements. Is there a minimum initial deposit requirement? Do any other deposit requirements apply? Are there tiered APYs depending on your deposit amount?
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Fees:Some accounts may have monthly maintenance fees or other fees. Look into which fees may apply before opening a new account.
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Accessibility:Understand how you can access your money before opening a new account. For example, can you log into an online dashboard? Does your bank have a mobile app? Is it connected to an ATM network?
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Deposit options:Review available deposit options. Are mobile check deposits via a mobile banking app an option? Can you make direct deposits via an ATM?
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Account linking:Look into whether you can link your new account to an existing checking account at another bank. Make sure there are no restrictions or waiting periods when it comes to accessing your money.
How to open a high-yield savings account
Once you've determined the best high-yield savings account for you, opening one is simple and can be done in person or online. You'll generally need to provide your personal information, proof of identity, and address to open a new account. Make sure you have your driver's license, Social Security number, and copies of a recent mortgage statement or utility bill.
Depending on the account, a minimum deposit amount could apply when you open your HYSA account. If that's the case, you'll also need to be ready to transfer money from an existing account to meet the deposit requirement.
Best high-yield savings accounts: Methodology
Our grading system, collected and carefully reviewed by our personal finance experts, comprised nearly 300 data points for approximately 30 federally insured savings accounts to develop our list of the top 10 high-yield savings accounts. We considered accounts with yields higher than the national average for traditional savings accounts.
We evaluated these accounts according to several key metrics, including annual percentage yield, minimum opening deposit, minimum balance requirement, monthly fees, compounding frequency, and more.
The accounts on our list could earn a maximum of 45 points across all metrics. Here's a closer look at the categories we considered:
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Annual percentage yield (APY):Accounts with higher APYs were rewarded with more points than those with lower APYs. Note that rates on our list are current at the time of publishing but are subject to change at any time.
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Minimum balance to earn interest:Some banks and credit unions require a minimum balance to earn the advertised rate. We favored accounts that had no or low minimum balance requirements.
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Minimum opening deposit:Many high-yield savings accounts require a minimum deposit to open an account. High-yield savings accounts with no or low minimum deposit requirements were given preference in our rankings.
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Monthly fees:It's not uncommon for high-yield accounts to charge a monthly maintenance or service fee. We rewarded accounts with no monthly fees.
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Compounding frequency:Compounding can happen daily, monthly, or even annually. We awarded more points to accounts that compound interest frequently.
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Account bonus:Accounts with a current bonus promotion earned extra points.
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Maximum bonus amount:We awarded more points to the accounts with higher welcome bonuses.
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Customer service contact methods:Our team awarded one point for every contact method available to customers (phone, email, chat).
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Mobile app rating:High-yield savings accounts at banks with a higher average mobile app rating on the Apple and Google storefronts scored more points than those with lower user ratings.
