Where to find high-yield savings accounts right now

High-yield savings accounts are offered by online banks, credit unions, and some traditional banks. Online banks typically offer the highest rates because they have lower overhead costs than branches. The banks currently offering competitive rates include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360. Credit unions like Connexus Credit Union and Pentagon Federal Credit Union also offer high-yield options. Traditional banks with physical branches—Chase, Bank of America, Wells Fargo—generally offer much lower rates on savings accounts, though some have created online divisions with better rates.

Rates change frequently, sometimes weekly. The rate you see today may not be the rate you lock in tomorrow. Before opening an account, check the current APY on the bank's website directly, because rates vary based on account type and balance. Some banks offer higher rates for larger deposits or new customers, while others offer the same rate to everyone.

Key Takeaways

  • Online banks consistently offer higher rates than traditional banks with physical branches because they spend less on overhead.
  • Rates change frequently and vary by bank, so comparing current APY across multiple banks before opening an account matters.
  • Credit unions and online divisions of traditional banks can offer competitive rates, but you may need to meet membership or balance requirements.
  • FDIC insurance (at banks) or NCUA insurance (at credit unions) protects your deposit up to $250,000 per account owner, regardless of the rate offered.

Online banks with competitive rates

Online banks have no physical locations, which means lower costs for rent, staff, and equipment. They pass those savings to customers through higher interest rates. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank are among the most established online banks offering high-yield savings. Each has different features: some charge no monthly fees, some offer no minimum balance requirement, and some allow multiple savings buckets within one account.

Opening an account at an online bank is done entirely through their website or mobile app. You will need to verify your identity with a Social Security number and provide a linked external bank account for transfers. Deposits and withdrawals happen through ACH transfers, which typically take one to two business days. Some online banks also offer debit cards or allow you to link a checking account, which speeds up access to your money.

Credit unions and their savings options

Credit unions are member-owned financial institutions that sometimes offer rates competitive with online banks. Connexus Credit Union and Pentagon Federal Credit Union are two of the largest offering high-yield savings to people nationwide. However, credit unions typically have membership requirements—you may need to live in a certain state, work for a specific employer, or belong to an organization. Some credit unions allow you to join by making a small donation to a nonprofit they sponsor.

Credit union deposits are insured by the National Credit Union Administration (NCUA) up to $250,000 per account owner, the same protection level as FDIC insurance at banks. If you already belong to a credit union, ask whether they offer a high-yield savings product, because you may already have access without opening a new membership.

Traditional banks with online savings divisions

Some large traditional banks have created separate online divisions to compete with online-only banks. Bank of America has BankAmericard, Wells Fargo has Wells Fargo Online Savings, and Chase has Chase Online Savings. These accounts are offered through the same bank but operate separately from branch accounts. Rates are typically higher than the bank's branch savings accounts but lower than rates at online-only banks.

The advantage of using a traditional bank's online division is that you may already have a checking account there, which makes linking accounts and moving money faster. The disadvantage is that you are still paying for the bank's branch network through lower rates. If you are comparing rates, check whether the online division's rate is actually higher than what you would get at a pure online bank.

What to check before opening an account

Compare these details across banks before deciding: the current APY, any minimum balance requirement, monthly fees, how quickly you can withdraw money, and whether the bank is FDIC-insured or NCUA-insured. Some banks advertise a high rate but only for the first few months, then drop the rate for existing customers. Read the terms carefully to see whether the rate is promotional or ongoing.

Check whether the bank allows you to open the account online without visiting a branch, and whether you can link an external bank account for deposits. Some banks require you to fund the account from another bank you own; others allow transfers from any account. If you plan to deposit cash, confirm whether the bank accepts cash deposits and how—some online banks have no way to deposit cash at all.

FDIC and NCUA insurance protection

All deposits at FDIC-insured banks are protected up to $250,000 per account owner per bank. All deposits at NCUA-insured credit unions are protected up to $250,000 per account owner per credit union. This protection applies regardless of the interest rate the account earns. If the bank or credit union fails, the FDIC or NCUA will return your money up to the limit.

If you have more than $250,000 to save, you can split it across multiple banks or credit unions to keep all of it insured. For example, $250,000 at Bank A and $250,000 at Bank B are both fully protected. Some banks offer multiple account types (like a regular savings account and a money market account) that are insured separately, but confirm this with the bank before assuming your full balance is covered.

How rates change and what that means for you

High-yield savings rates move up and down based on the Federal Reserve's interest rate decisions. When the Fed raises rates, banks typically raise the APY they offer on savings accounts within days or weeks. When the Fed cuts rates, banks lower savings rates more slowly, but they do eventually. This means the rate you earn today may be higher or lower in six months.

You do not have to move your money if rates drop at your bank—you can keep it there or transfer it to a bank offering a better rate. Transfers between banks take one to two business days through ACH. Some people move their savings to whichever bank is offering the highest rate at any given time. Others choose a bank based on features like customer service or ease of use, and accept a slightly lower rate in exchange.

Frequently Asked Questions

Can I open a high-yield savings account if I do not have a checking account?

Yes. Most online banks allow you to open a savings account without a checking account. You will need to link an external bank account (from any bank) for your first deposit, but after that you can transfer money in and out as needed. Some banks allow you to open both a checking and savings account at the same time if you prefer.

What happens to my money if the bank fails?

If the bank is FDIC-insured, the FDIC returns your money up to $250,000 per account owner. This process typically takes a few weeks. Your money is safe even if the bank goes out of business. Check the bank's website or the FDIC website to confirm the bank is insured before opening an account.

How long does it take to withdraw money from a high-yield savings account?

Transfers to an external bank account take one to two business days through ACH. Some banks offer faster transfers for an extra fee, or allow you to use a debit card to withdraw cash at ATMs. Check the bank's withdrawal options before opening an account if speed matters to you.

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

It depends on the bank. Some banks offer the advertised rate on any balance, even $1. Others require a minimum balance like $500 or $2,500 to earn the full rate. Read the account terms to see whether a minimum applies and what rate you earn if your balance falls below it.

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

Yes. You can transfer your savings to another bank at any time without penalty. The transfer takes one to two business days. Many people move their money to whichever bank is offering the highest rate, and there is no limit to how many times you can do this.