Where to find a high-yield savings account

High-yield savings accounts are offered by online banks, credit unions, and a few traditional banks with strong online platforms. The banks paying the highest rates right now include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360. Rates change weekly, so the leader today may not be the leader next month—what matters is checking the current rate before you open an account, not the name on the sign.

Online-only banks tend to offer higher rates than brick-and-mortar banks because they have lower overhead costs. Credit unions sometimes match or beat online bank rates, especially if you are a member. Traditional banks like Chase, Bank of America, and Wells Fargo offer savings accounts, but their rates are typically much lower than what online banks pay—often under 0.5% APY when online options are paying 4% or higher.

The rate you see advertised is the Annual Percentage Yield, or APY. This is the actual return you earn in a year, including compounding. A bank can change its rate at any time, so the 4.5% you see today might be 4.2% in three months. Read the terms before opening to understand whether the rate is promotional (temporary) or standard.

Key Takeaways

  • Online banks like Marcus, Ally, and Discover currently pay significantly higher rates than traditional banks, though rates shift weekly and vary by bank.
  • The APY shown is the actual annual return including compounding, and banks can lower rates without notice once your account is open.
  • Credit unions may match online bank rates and offer the added benefit of membership perks, so checking your local credit union is worth a call.
  • Deposit insurance through FDIC (banks) or NCUA (credit unions) protects up to $250,000 per account holder per institution, so splitting large balances across banks is a valid strategy.

How to compare rates across banks

Start by visiting the website of each bank you are considering and looking for the current APY on their savings account page. Most banks display it prominently. Write down the rate, the minimum balance required to earn that rate, and any fees. Some banks require a minimum deposit to open; others do not. Some charge a monthly fee if your balance drops below a threshold; others have no fees at all.

Use a rate-tracking site like Bankrate, DepositAccounts, or DepositRates to see how each bank's current rate compares. These sites update daily and let you filter by account type, minimum balance, and FDIC insurance status. The comparison takes five minutes and can show you whether a bank you have not heard of is paying more than the well-known names.

Call or email the bank directly if the website does not clearly state the rate or terms. Customer service can confirm whether a promotional rate is temporary and when it expires. If a bank is offering a sign-up bonus (extra cash for opening an account and meeting a deposit requirement), ask whether that bonus counts toward your minimum balance requirement.

Online banks versus credit unions

Online banks have no physical branches, which means you cannot walk in to deposit cash or speak to someone face-to-face. You deposit money by transferring it from another bank account or by mailing a check. Withdrawals happen the same way—you transfer money out electronically or request a check. This setup keeps costs low and allows the bank to pass higher rates to customers.

Credit unions are member-owned cooperatives that often pay competitive rates and may offer lower fees on other services like checking accounts or loans. To join, you typically need to live or work in a specific area, belong to a certain employer, or meet another membership criterion. Once you are a member, you can usually access your account online, by phone, or at a shared branch network (many credit unions let members use other credit unions' ATMs and branches for free).

The trade-off is convenience versus rate. If you need to deposit cash regularly or prefer speaking to someone in person, a credit union or a traditional bank with branches may be worth a slightly lower rate. If you rarely need cash and want the highest rate, an online bank is usually the better choice.

What to watch for when opening an account

Read the account agreement before you open. Look for the current APY, any minimum balance requirement, monthly fees, and whether the rate is promotional. A promotional rate might be 4.5% for the first three months, then drop to 3.5% after that. The agreement should state when the promotional period ends.

Check the bank's FDIC or NCUA insurance status. FDIC insurance (for banks) and NCUA insurance (for credit unions) protect your money up to $250,000 per account holder per institution if the bank fails. If you have more than $250,000 to save, you can open accounts at multiple banks to keep all your money insured. Some banks offer multiple account types (like a regular savings account and a money market account) that are insured separately, so you could have $250,000 in each and stay fully protected.

Confirm how long transfers take. Most online banks transfer money to or from another bank account within one to three business days. If you need access to your money faster, ask whether the bank offers instant transfers to accounts at the same institution or to linked external accounts. Some banks charge a fee for faster transfers; others do not.

Rates change—how to stay on top of it

Banks lower rates when the Federal Reserve lowers its benchmark rate, and they raise rates when the Fed raises. The Fed does not control individual bank rates, but banks follow the Fed's moves because it affects how much they pay to borrow money. When the Fed cuts rates, expect high-yield savings rates to fall within weeks or months. When the Fed raises rates, banks usually raise savings rates too, though sometimes more slowly.

Set a reminder to check your bank's rate every three to six months. If another bank is now paying significantly more (usually 0.5% or higher), moving your money is worth considering. Most online banks make it easy to transfer money out—you can initiate the transfer online and the money usually arrives within a few days. There is no penalty for moving your savings to a higher-paying bank.

Some people keep accounts at two or three banks and move money to whichever is paying the highest rate at any given time. This strategy works if you do not mind managing multiple accounts. Others pick a bank they trust and stay put, accepting that the rate will fluctuate. Either approach is reasonable—the difference between 4.5% and 4.0% on $10,000 is $50 a year, so do not stress over tiny rate differences.

Banks with additional features worth considering

Ally Bank offers a high-yield savings account with no minimum balance and no monthly fees. It also has a checking account, so you can keep all your money in one place. Marcus by Goldman Sachs is known for straightforward terms and no fees. American Express Personal Savings requires an American Express card to open but offers competitive rates and no minimum balance.

Discover Bank includes a checking account option and cashback on debit card purchases, which is unusual for a high-yield savings bank. Capital One 360 offers both savings and checking, plus the ability to open multiple savings accounts (useful if you want to separate money by goal). Connexus Credit Union and Pentagon Federal Credit Union are credit unions that accept members nationwide and pay rates competitive with top online banks.

None of these banks is objectively "best"—the right choice depends on whether you want a checking account too, whether you prefer a bank or a credit union, and which current rate is highest. The bank paying the most today might not be paying the most in six months, so do not get too attached to any single institution.

Frequently Asked Questions

Can I move my money to a different bank if rates drop?

Yes. There is no penalty for transferring your savings to another bank. Most transfers take one to three business days. You can initiate the transfer online from your new bank's website, and they will handle moving the money from your old account. Keep your old account open until the transfer completes, then close it if you want.

What is the difference between a savings account and a money market account?

A money market account usually pays a slightly higher rate than a savings account but may require a higher minimum balance. Both are insured by FDIC or NCUA up to $250,000. The main practical difference is that money market accounts sometimes come with a debit card or checkbook, making them more like a hybrid between savings and checking. For most people, a high-yield savings account is simpler.

Do I have to keep a minimum balance to earn the advertised rate?

It depends on the bank. Some banks pay the full rate on any balance, no matter how small. Others require a minimum (often $500 or $1,000) to earn the advertised rate. Check the account terms before opening. If you cannot meet the minimum, the bank may pay a much lower rate or no interest at all.

Is my money safe in an online bank?

Yes, as long as the bank is FDIC-insured. FDIC insurance protects your money up to $250,000 per account holder per bank if the bank fails. Online banks are regulated the same way as traditional banks. Check the bank's website or the FDIC website to confirm it is insured before you open an account.

How often do banks change their rates?

Banks can change rates at any time without notice, though most announce changes on their website. Rates typically move when the Federal Reserve changes its benchmark rate, but banks do not have to match the Fed's moves exactly. Some banks raise rates quickly when the Fed raises; others are slower. Check your bank's rate every few months to see if it has changed.