Why You Can Trust Us

Investopedia collects savings account rates from over 100 banks and credit unions every weekday. When ranking high-yield savings account rates, 🔯we look at factors that will help readers choose the best savings account, like minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best high-yield savings account rates since 2019.

What Is a High-Yield Savings Account?

As the name implies, high-yield savings accounts pay much higher interest rates than traditional ones. Often offered online, whether by an 澳洲幸运5官方开奖结果体彩网:internet-only bank or the online division of a 澳洲幸运5官方开奖结果体彩网:brick-and-mortar bank, they're a type of savings account that's based on the idea of holding your savings wherever it can earn a competitively high yield, even if that's a different bank than where ꦕyou hold your checking account.

The difference in savings account interest rates can be dramatic, with the top accounts in the country typically offering 10 to 12 times the national average rate. And you can still keep your checking account where it is, because it's simple to link a 澳洲幸运5官方开奖结果体彩网:high-yield savings account to your primary account for easy transfers.

Reasons to Open a High-Yield Savings Account

Stashing some of your cash in a savings account is smart whether you're saving for something specific, or just want to sock money away for when you'll need it in the future. Here are some common reasons to open a savings account:

• Build an emergency fund: By putting your emergency money in a high-yield account, you'll be able to boost your balance with monthly interest earnings, while also leaving your funds fully accessible should a financial emergency arise.
• Reach a specific goal: This may include buying a house or a car, sending your son or daughter to college, or going on a special vacation.
• Grow your savings: Earning interest on your money means your savings balance will grow faster than if you were making monthly contributions and not earning anything.

How Much Will a High-Yield Savings Account Pay on $1,ꦺ000, $5,000, or Higher Balances?

The amount of money you can earn in a high-yield savings account will be based on how much you deposit and what your interest rate is. Based on initial deposits of different amounts from $1,000 to $100,000, we calculate below what your balance would be at the end of one year if you put the funds in a top-paying high-yield savings account, paying 5.00%, vs. a savings account paying the national average of 0.42% APY.

Of course, you c💫an boost your balance even more by regularly adding deposits to your savings account. One smart way to do this is to set up an automated transfer from your checking account once a month.

How to Choose the Best๊ High-Yield Savings Account💜

Once you've decided to open up a new high-yield savings account, you'll want to do your homework to make sure you're choosing the best one for your needs. Searching for a top annual percentage yield (APY) is a good starting point when choosing 🔴a high-yield savings account, as you'll want to earn a competitive rate.

Though the interest rate can change, it makes sense to choose an account that is paying one of the highest rates in the country, since the higher your rate, the more interest you'll collect every month and every year. Also, through the 澳洲幸运5官方开奖结果体彩网:power of compounding, you can make interest of🔴f your interest, and the high💧er the APY on your account, the better.

But beyond the interest rate, you'll also want to make sure the account either doesn't have a minimum balance requirement, or has one that you feel confident you can regularly maintain. Also, note if there is a minimum balance required to earn the top APY.

Common Savings Account Terms to Understand

When researching high-yield savings accounts to find the be🔥st one for you, be sure you understand what these commonly used termsܫ mean.

• Minimum opening deposit or initial deposit: Some bank accounts—whether a savings, checking, or money market account—stipulate a minimum deposit you need to make to open the account. It could be quite low, like $25, or could be as much as $25,000 for some high-balance accounts. And some accounts have no requirement, letting you open the account with no money deposited. Note that if an account has a initial deposit requirement but then no minimum ongoing balance, you do not need to keep that money at the bank after your initial deposit.
• Minimum balance requirement or ongoing balance: Unlike a minimum initial deposit, a 澳洲幸运5官方开奖结果体彩网:minimum balance requirement refers to the least amount of money you can keep in the account on an ongoing basis. For instance, a bank may require your balance to stay at or above $100 or $1,000 for its account—or any other amount the bank prefers. Falling below the minimum requirement could mean being hit with a fee, or could instead mean you won't earn the high-yield interest rate on the account. So be sure the account you choose either has no minimum ongoing balance or one that you feel confident you can always stay above.
• Monthly maintenance fee: Banks and credit unions charge various types of fees. Unlike ones triggered by a transaction, such as an 澳洲幸运5官方开奖结果体彩网:insufficient funds fee or a 澳洲幸运5官方开奖结果体彩网:wire transfer fee, the monthly service fee is a standard fee you could be charged every statement cycle. Many accounts do not have a monthly maintenance fee, while some others provide ways for you to avoid the fee each month. Be sure you understand the fee rules for any account you're considering.
• Mobile check deposit: The ability to deposit checks using the camera on your smartphone or tablet—rather than having to take the check to a branch—is called 澳洲幸运5官方开奖结果体彩网:mobile check deposit or remote check deposit. Most institutions' mobile apps offer this as an easy way to get money deposited into your account.
• External or ACH transfer: The electronic process of moving funds between two financial institutions is called an external or 澳洲幸运5官方开奖结果体彩网:ACH transfer. Virtually every high-yield savings account allows you to send or receive external transfers so that you can easily move money in and out of your savings account.

How to Open a High-Yield Savings Account

After comparing the best high-yield savings account and landing on a choice, the next step is to open the account online. Here's how that generally works:

• The bank or credit union will ask you to provide various personal information, including your social security number, since your interest earnings will be reportable to the IRS.
• The bank's account opening process will also involve security measures designed to ensure you are who you say you are.
• You'll also be presented with one or more options on how to fund your account. The most common method is by ACH transfer from another bank, and you'll be provided with instructions on how to set this up.
• Alternatively, some institutions allow you to make your initial deposit with a debit card, a credit card, or even a paper check sent through the mail.

Once▨ the application process is completed, you may be able to set up online banking r🌊ight away, or you may need to wait a day or two for your account to be fully opened.

Pros and Cons of High-Yield Savings Accounts

Who Is a High-Yield Savings Account Best For?

Anyone with surplus savings in the bank can benefit from a high-yield savings account. If you have more money in the bank than you need to hold in your checking account, high-yield savings accounts offer a way to sock some of those funds away to earn an especially high annual percentage yield (APY). High-yield savings accounts are also well suited to those comfortable with internet or mobile banking, as moving money in and out of an online savings account must generally be done on your computer or via a mobile banking app on your pho🐻ne.

When choosing the best savings account for you, you'll want to check the rules of the account, such as whether it limits the number of withdrawals you can make in a month, and if you'll be assessed a monthly maintenance fee. Lastly, check that the bank is an FDIC member (or an NCUA member if it's a credit union) so that your money is insured by the federal government—up to $250,000 per depositor—should the bank or credit union fail. Online reviews of a bank's customer service may also prove useful.

Alternatives to High-Yield Savings Accounts

High-yield savings accounts are just one vehicle for stashing your cash, and they often pay the highest APYs. But there are several alternatives for holding your funds until you need them.

High-Yield Savings Account vs. Checking Account

While the easiest place to keep surplus funds is in your 澳洲幸运5官方开奖结果体彩网:checking account, this has two major downsides. First, money kept in your everyday checking account is very easy to spend, making it difficult to leave earmarked as savings. Second, checking acc๊ounts tend not to pay any interest—or if they do, the rate is a pittance. A high-yield savings account offers an opportunity to earn💝 a reasonable return on your money.

Some 澳洲幸运5官方开奖结果体彩网:high-yield or rewards checking accounts do exist, with rates that are more competitive. But these accounts require jumping through some hoops—sometimes every month—in order to earn their high rate. Still, if you're a heavy debit card user, one of the bes꧙t rewards checking accounts may be a good option for you.

High-Yield Savings Account vs. Traditional Savings ওAccount

There is no formal definition of how high a rate needs to be to qualify as "high yield". In short, it's up to each institution how to name their savings accounts. Traditional banks and credit unions more often offer traditional savings accounts, while online banks are more likely to offer a high-yield savings account. But again, the distinctions are fuzzy, rather than hard-and-fast rules.

H♉igh-Yield Savings Account vs. Mone🍌y Market Account

A 澳洲幸运5官方开奖结果体彩网:money market account operates very much like a savings account, with the exception that it allows writing checks. In the past, money market accounts typically imposed high minimum deposit requirements in exchange for higher rates than savings accounts. This has shifted in recent years, however, with savings and money market accounts both having a variety of required minimum balances—including no-minimums accounts. In addition, high-yield savings accounts often pay more competitive rates than money markets, though sometimes you can find a higher APY among the 澳洲幸运5官方开奖结果体彩网:top-paying money market accounts.

High-Yield Savings Account vs.𒁃 Certificate of Deposit (CD)

If some of your savings can be socked away and not touched for a period of time, you may be able to earn a higher rate with a certificate of deposit. CDs require you to commit your funds to remain on deposit for a number of months or years, imposing a penalty if you request to withdraw the funds before the CD’s maturity date. But in exchange, your interest rate is locked and guaranteed, even if the Fed lowers rates. Our daily ranking of the 澳洲幸运5官方开奖结果体彩网:best nationwide CDs can lead you to the highest available APYs no matter the CD term you choose.

How We Find the Best High-Yield 𒆙Savings Account Rates

Every business day, Investopedia tracks the rate data of about 100 banks and credit unions that offer high-yield savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts first and foremost by the annual percentage yield (APY) offered. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the acc🥀ount's minimum initial꧑ deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the savings account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms.

For more about how we choose the best high-yield savings accounts, 澳洲幸运5官方开奖结果体彩网:read our full methodology.

Learn More About High-Yield Savings Accounts

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• 澳洲幸运5官方开奖结果体彩网:What Is an APY?
• 澳洲ꦺ幸运5官方开奖结果体彩网:How to Open a High-Yield Savings Accoun🌊t
• 澳洲幸运5官方开奖结果体彩网:Best High-Yiel🅷d Business Savings Accounts
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