| APY | $1,000 balance | $2,500 balance | $5,000 balance | $10,000 balance | $20,000 balance | $50,000 balance | $100,000 balance |
| 1 year of earnings at the national average rate | 0.40% | $1,004 | $2,510 | $5,020 | $10,040 | $20,080 | $50,200 | $100,401 |
| 1 year of earnings at today's top rate | 5.00% | $1,050 | $2,625 | $5,250 | $10,500 | $21,000 | $52,500 | $105,000 |
| Added earnings from HYSA | | + $46 | + $115 | + $230 | + $460 | + $920 | + $2,300 | + $4,599 |
Of course, you can 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 Best 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 topannual 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 thepower of compounding, you can make interest off your interest, and the higher 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.
Why Different Banks Pay Different Rates
Each bank is a business that has different needs for customer deposits, operating in its own regional market. As a result, some banks have to work harder to attract funds, such as smaller banks with names you may not be familiar with.
Also important is the lending activity the bank is undertaking. If, for instance, a bank is in a strategic push to build its commercial lending portfolio, it will need to attract more customer deposits in order to fund those loans it hopes to make. One way they can do this is offering a promotional APY for a short period to boost their deposits balance, but then lowering it after they've accumulated enough funds.
Common Savings Account Terms to Understand
When researching high-yield savings accounts to find the best one for you, be sure you understand what these commonly used terms 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, aminimum balance requirement refers to the least amount of money you can keep in the account on anongoing 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 aninsufficient funds fee or awire 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 calledmobile 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 orACH 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 right away, or you may need to wait a day or two for your account to be fully opened.
Tip
Transfers between different institutions will take one to three days to complete, so be sure to keep enough of a cash cushion either in your checking account or in a linked savings account at that same institution. That way you won’t run into trouble if you can’t get funds from your high-yield account for a couple of days.
Pros and Cons of High-Yield Savings Accounts
Pros
Higher APY than traditional savings accounts
Ability to withdraw or deposit funds at any time
Extremely safe, with virtually no risk
Excellent vehicle for an emergency fund or saving for a big goal
In times of rising rates, your APY may go up
Cons
Earning a top yield may require opening an account with a new institution
Some accounts have withdrawal limits of six per month
Easy access can make it tempting to dip into savings
Account could have a fee or minimum balance requirement
In times of decreasing rates, your APY may go down
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 highannual 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 phone.
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 severalalternatives for holding your funds until you need them.
High-Yield Savings Account vs. Checking Account
While theeasiest place to keep surplus funds is in yourchecking 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 accounts 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.
Somehigh-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 best rewards checking accounts may be a good option for you.
High-Yield Savings Account vs. Traditional Savings Account
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.
Why You Don't See Big Name Banks on Our List
We track the savings account rates of over 100 banks and credit unions every weekday. While we do check the rates at big banks—including the five largest banks of Chase, Bank of America, Wells Fargo, Citi, and U.S. Bank—their rates aren't usually high enough to make our ranking. Meanwhile, other institutions may not qualify for our ranking because they aren't available to customers in at least 40 states, or they significantly limit the balance on which you can earn their high-yield APY.
High-Yield Savings Account vs. Money Market Account
Amoney 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 thetop-paying money market accounts.
Financial Advisor Insight
"When a client has money they won't need in the next 12 to 24 months, I encourage them to take advantage of a high-yield savings account or money market account to hedge against inflation as well remove the funds from their actively used checking accounts. Basically, a 'hands off account,'" saidSibyl Slade, a member ofInvestopedia’s Financial Advisor Council.
High-Yield Savings Account vs. 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 acertificate 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 thebest nationwide CDs can lead you to the highest available APYs no matter the CD term you choose.
Frequently Asked Questions
What Does "HYSA" Mean?
HYSA is simply an abbreviation for "high-yield savings account." In contrast to traditional savings accounts,high-yield savings accounts aim to attract customers and their deposits by offering a much more competitive interest rate.
What Are the Best High-Yield Savings Accounts?
The top-paying institutions for savings accounts vary, with no one bank consistently leading the rate rankings. In general, the top rate contenders tend to be online operations, whether owned by a physical bank or set up as a fully online-only institution. You can always find today's highest rates—currently near 5.00%—and the institutions that offer them by regularly checking our ranking in this article. Or for a list that is exclusive to banks (no credit unions), you can check our daily ranking of thebest banks for savings accounts.
Are High-Yield Savings Accounts Safe?
Yes, high-yield savings accounts are generally considered safe. In a worst-case scenario, a savings account will pay no interest, meaning your funds don't grow at all. But you would never lose the money you put into the account, other than due to fees you've been assessed. So it's important to choose an account where you can easily avoid paying any fees.
As for losing money due to a bank failure, the vast majority of banks—whether physical or online—are covered by theFederal Deposit Insurance Corporation (FDIC), which protects banking customers by insuring up to $250,000 of their deposits per institution if the bank fails. The U.S. government similarly backs credit union customers for up to $250,000 by providing insurance through theNational Credit Union Administration (NCUA).
That means whether your dealing with a traditional brick-and-mortar bank, an online bank, or a credit union, your deposits up to $250,000 are equally safe and protected.
Are High-Yield Savings Accounts Worth It?
For cash savings that you want easy access to, it's hard to beat a high-yield savings account. You can earn a competitive rate—above inflation—and you can withdraw the money whenever you need. They're more liquid thanCDs, which lock your money up for a specific amount of time, and they're less risky than stock investing because you can't lose money (other than through account fees, which can usually be avoided).
Which Banks Are Paying 7% Interest on High-Yield Savings Accounts?
While it would be nice to earn 7% on money held in savings, no banks or credit unions are paying that much on a regular savings account. The only account paying a 7% APY right now is asavings account for kids, but only on balances up to $1,000. Savings account rates surged in 2023 and 2024, thanks the Federal Reserve's aggressive rate-hike campaign. But at its highest point, the top savings account rate available to anyone in the country reached 5.55% APY in April 2024.
How Do High-Yield Savings Accounts Work?
High-yield savings accounts work just like regular savings accounts. You begin by applying for an account with a bank or credit union. If approved, you'll make a deposit to fund your account, and will begin earning interest. You can add more funds whenever you'd like, and you can typically withdraw the money whenever you'd like, although some institutions still have monthly limits.
In some cases, however, HYSAs have extra requirements to earn the high rate that you won't find with regular savings accounts.
Are High-Yield Savings Accounts Taxed?
Yes, you mustpay taxes on the earnings of a savings account. The interest you earn from a bank account—whether paid on a savings, checking, money market, or CD account—will need to be reported on your annual tax return. You'll be able to see on your monthly statement or online register how much you were paid each month, and at the end of the calendar year, it will be taxed along with all of your other income from employment and other sources.
The bank where you hold your high-yield savings account will not tax you directly, but in January of each year, they will send you and the IRS a Form 1099-INT indicating how much interest you were paid in the previous calendar year. You must then report this interest income on your tax return.
Which Banks Do You Track for High-Yield Savings Accounts?
Every business day, we check the savings account rate for about 100 banks and credit unions that offer their accounts to customers nationwide. They include the following:
5Star Bank, Abington Bank, ableBanking, Affirm, Alliant Credit Union,Ally Bank, Amalgamated Bank,American Express, American Heritage Federal Credit Union, Axos Bank, Bank5 Connect, Bank5 Connect, Bank7, BankPurely, BankPurely,Barclays, Bask Bank, Blue Federal Credit Union, BluPeak Credit Union, BMO / BMO Alto, Bread Savings, BrioDirect,Capital One, CFG Bank,Chime, CIBC USA, CIT Bank, CIT Bank, CIT Bank,Citi, Citizens Access, CNB Bank Direct, CNB Bank Direct, Colorado Federal Savings Bank, CommunityWide Federal Credit Union, ConnectOne Bank, Credit Karma, Customers Bank, Digital Federal Credit Union,Discover, DollarSavingsDirect, E*TRADE Bank, Elements Federal Credit Union, Elements Financial, EmigrantDirect.com, EverBank, Evergreen Bank Group, First Foundation Bank, First Internet Bank, Fitness Bank, FNBO Direct, Forbright Bank, Hanscom Federal Credit Union, iGObanking, iGObanking, Ivy Bank, Jovia Financial Credit Union, Laurel Road, Lending Club, Live Oak Bank,Marcus by Goldman Sachs, MemoryBank, Milli, mph.bank, MutualOne Bank, My Banking Direct, MySavingsDirect, Nationwide by Axos, nbkc bank, Neighbors Bank, Newtek Bank, North American Savings Bank, Northfield Bank, Northpointe Bank, ONE, One American Bank, Panacea Financial, Pen Air Federal Credit Union, PenFed Credit Union, Popular Direct, Presidential Bank, Prime Alliance Bank, Primis Bank, Quontic Bank, Quorum Federal Credit Union, RBMAX, Rising Bank, Salem Five Direct, Sallie Mae Bank, SFGI Direct, SmartyPig, Synchrony Bank, TAB Bank, TotalDirectBank, UFB Direct, Upgrade, USAlliance Financial, Valley Direct, Vio Bank, VirtualBank, Web Bank, Western State Bank, and Workers Credit Union.
How We Find the Best High-Yield Savings 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 account's minimum initial 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,read our full methodology.
Learn More About High-Yield Savings Accounts
Revolut Disclosure
**The Annual Percentage Yield (APY) is a variable rate and may change at any time. APYs are accurate as of 09/29/2025. APYs vary by plan and account type. The rates are as follows: Standard Plan: 4.00% APY for balances in a High Yield Account; 3.25% APY for balances in other Savings Accounts. Premium Plan: 4.50% APY for balances in a High Yield Account; 3.35% APY for balances in other Savings Accounts. Metal Plan: 5.50% APY for balances in a High Yield Account; 3.75% APY for balances in other Savings Accounts.
Revolut is not a bank. Plan fees and cancellation fees apply for Premium and Metal plans. This is a variable rate account and the APY may change without notice. T&Cs apply. No min balance to open; $0.01 min. to earn APY. Only 1 High Yield Account is permitted and is limited to $10,000 USD in user initiated deposits. The max combined balance of all Savings Accounts is $250,000 per user. Savings Account services provided by Cross River Bank, Member FDIC, insured up to $250,000.
E*TRADE Premium Savings Account Disclosure
*To be eligible for this offer, you must apply promo code "SAVE100" at the time of account opening. This promotional code is intended for single use only and is non-transferable.
This offer is only valid for a new Premium Savings Account (PSA). This offer is not valid for Checking, Max-Rate Checking or line of credit accounts that we or our affiliates offer. IRA and non-IRA Brokerage accounts are ineligible. This offer is only eligible to one new opened and funded Premium Savings Account (PSA) within thirty (30) days. Excludes non-U.S. residents, and residents of any jurisdiction where this offer is not valid. Customer may only be enrolled in one PSA offer at a time. Cannot be combined with any other PSA offers. Each customer is limited to a lifetime maximum of two new Premium Savings Account offers. Offer may be removed at any time. Other restrictions may apply.
**As of 11/03/2025, the Annual Percentage Yield (APY) of the Premium Savings Account offered by Morgan Stanley Private Bank, National Association, Member FDIC is 3.75%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit etrade.com/ratesheet for information regarding this account's current interest rate and corresponding APY.
^No minimum initial deposit required to open an account. However, the account must be funded within 30 days to remain open.
†The Premium Savings Account gives Morgan Stanley Private Bank, National Association, Member FDIC the ability to send any amount held on deposit in your Premium Savings Account to other depository accounts at Federal Deposit Insurance Corporation (“FDIC”) member banks with the purpose of affording you additional FDIC insurance coverage. It is designed to offer up to $500,000 in FDIC coverage to individual accounts (up to $1 million for joint accounts). Certain conditions must be met. Learn More.
SoFi Disclosures
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Enroll in SoFi Plus between 9/18/25 and 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/sofi-plus SoFi Bank, N.A. Member FDIC.