US Bank does not offer a dedicated high yield savings account
US Bank's standard savings accounts earn interest rates well below what you can find elsewhere. As of early 2024, their regular savings accounts pay rates that typically fall between 0.01% and 0.05% annual percentage yield (APY), depending on the account type and balance. This is substantially lower than high yield savings accounts available from online banks and credit unions, which often pay 4% to 5% APY or higher.
US Bank does offer a Money Market Account, which pays slightly higher rates than their savings products, but it still does not compete with what the market calls "high yield." The Money Market Account requires a higher minimum balance to open and to earn the stated rate, and the APY remains modest compared to accounts specifically designed for savers seeking competitive returns.
If you bank with US Bank primarily for checking or other services and want to earn meaningful interest on savings, you will need to move money to a separate account elsewhere. Many people keep their checking at US Bank while holding savings at an institution with higher rates.
Key Takeaways
- US Bank savings accounts pay between 0.01% and 0.05% APY, which is far below current high yield rates offered by online banks and credit unions.
- US Bank's Money Market Account pays more than savings but still does not meet the threshold of what is typically called "high yield" in the current market.
- To earn high yield rates, you will need to open an account at a different institution, such as an online bank or credit union.
- You can keep your US Bank checking account while moving savings to a higher-paying account at another bank.
How US Bank's savings products compare to the market
The difference between US Bank's rates and high yield accounts adds up quickly. On a $10,000 balance, earning 0.05% at US Bank would generate about $5 per year in interest. The same $10,000 at a 4.5% APY account would earn roughly $450 annually—ninety times more. Over five years, that gap becomes $2,250 in lost earnings.
US Bank is a traditional brick-and-mortar bank with physical branches across the country. That convenience comes with a cost: they do not need to offer high rates to attract deposits because customers often stay for the branch access and other services. Online banks have no branches and lower overhead, so they pass savings to customers through higher rates.
Credit unions, which are member-owned cooperatives, sometimes offer high yield savings as well. If you have access to a credit union through your employer, school, or community, it is worth checking their rates and terms.
What to look for in a high yield savings account
When you move money out of US Bank to earn higher rates, pay attention to a few specifics. The APY is the annual percentage yield—the actual rate you will earn, including compounding. Make sure you are comparing APY to APY, not APY to a base interest rate, because they are different numbers.
Check whether the rate is may provide or variable. Most high yield savings accounts have variable rates, meaning the bank can lower them if market conditions change. Some banks lock in a rate for a set period. Read the fine print to understand what happens to your rate if the Federal Reserve changes its benchmark rate.
Verify the FDIC insurance limit. The Federal Deposit Insurance Corporation insures deposits up to $250,000 per depositor, per bank, per account type. If you have more than $250,000 to save, you will need to split it across multiple banks or account types to stay fully insured. Online banks are FDIC-insured just like US Bank; the insurance does not depend on whether the bank has branches.
Look at the minimum balance required to open the account and to earn the stated rate. Some high yield accounts have no minimum; others require $1,000 or more. A few charge monthly fees if your balance drops below a threshold, though many do not charge fees at all.
How to move money from US Bank to a high yield account
Opening an account at another bank is straightforward. You can do it online in about ten minutes. You will need your Social Security number, a government-issued ID, and your current address.
Once your new account is open, you can transfer money from US Bank in two ways. The fastest is to link your US Bank account to the new bank and initiate an ACH transfer from the new bank's website. This usually takes one to three business days. Alternatively, you can withdraw cash from US Bank and deposit it at the new bank, though this is slower and less convenient for large amounts.
You do not have to close your US Bank account. Many people keep checking and a small emergency fund at US Bank for branch access while moving the bulk of their savings elsewhere. There is no penalty for having accounts at multiple banks.
Online banks and credit unions with high yield rates
Several institutions consistently offer rates in the 4% to 5% range for savings accounts. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Capital One 360 are among the larger online banks with high yield offerings. Smaller online banks and credit unions sometimes pay even higher rates, though they may be less well-known.
Rates change frequently—sometimes weekly—so the specific numbers available today will not be the same next month. Before you move money, check the current rates on comparison sites like Bankrate or DepositAccounts, which update daily. Read reviews to confirm the bank has reliable customer service and a working mobile app if that matters to you.
Credit unions vary widely. The National Credit Union Administration (NCUA) insures credit union deposits the same way the FDIC insures bank deposits—up to $250,000 per member, per institution. If you belong to a credit union, ask them directly what they pay on savings.
Tax implications of high yield savings
Interest earned on savings is taxable income. The bank will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You report this on your tax return.
The higher your rate, the more interest you earn, and the more you owe in taxes. This is still a net gain—earning 4.5% and paying taxes on it is better than earning 0.05% and paying almost nothing in taxes—but it is worth understanding. If you are in a high tax bracket, the after-tax return is lower than the stated APY.
Frequently Asked Questions
Can I keep my US Bank checking account and move only my savings?
Yes. You can maintain your US Bank checking account for everyday banking and branch access while opening a high yield savings account at another institution. Many people do this. Transfer money between the accounts as needed using ACH transfers, which are free and take one to three business days.
Will moving my money hurt my credit score?
No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Transferring money between your own accounts also has no impact on credit. Your credit score is based on borrowing and repayment history, not on where you keep savings.
What if the high yield bank fails?
Your deposits are insured by the FDIC up to $250,000 per account type. If the bank fails, the FDIC steps in and returns your money. This protection applies to online banks the same way it applies to US Bank. The FDIC has never failed to pay out insured deposits.
How often do high yield rates change?
Rates can change weekly or even daily, though most banks hold rates steady for weeks or months at a time. When the Federal Reserve raises or lowers its benchmark rate, banks typically adjust their savings rates within days or weeks. You are not locked into a rate unless the bank specifically offers a fixed-rate product.
Do I need a minimum balance to earn the high yield rate?
It depends on the bank. Many online banks have no minimum balance requirement and pay the stated rate on every dollar in the account. Others require $1,000 or $25,000 to open or to earn the full rate. Check the specific bank's terms before opening an account.