Where to find high-yield savings accounts today

High-yield savings accounts exist at online banks, some traditional banks with online divisions, and credit unions. The banks paying the highest rates right now are mostly online-only: Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360 all offer rates between 4% and 5% APY, though the exact rate changes weekly based on Federal Reserve decisions. Traditional banks like Chase, Bank of America, and Wells Fargo offer savings accounts, but their rates are typically under 0.5% APY—so low that inflation erodes your money faster than it grows.

Credit unions sometimes offer competitive rates through their savings accounts or share certificates (the credit union version of CDs). The best way to find what your credit union pays is to call or log into your account; rates vary widely by institution and by how much you deposit.

The catch: online banks have no physical branches. You deposit money by transferring it from another bank account, and you withdraw the same way. If you need to walk into a building and hand someone cash, an online bank won't work for you. If you're comfortable moving money electronically, online banks are where the highest rates live.

Key Takeaways

  • Online banks currently offer rates between 4% and 5% APY, while traditional brick-and-mortar banks typically pay under 0.5% APY on savings accounts.
  • Marcus, Ally, American Express Personal Savings, Discover, and Capital One 360 are among the banks with the highest current rates, though rates change weekly.
  • Credit unions may offer competitive rates, but you must contact your specific credit union to learn what they pay.
  • High-yield savings accounts at online banks require electronic deposits and withdrawals; there are no physical branches to visit.
  • The rate you receive depends on the bank, the amount you deposit, and Federal Reserve policy—compare current rates before opening an account.

How to compare rates across banks

Rates change constantly, so the number you see today may not be the number you get tomorrow. Before opening an account, visit the bank's website directly and look for the APY listed on the savings account product page. Do not rely on a comparison site alone; banks sometimes update their rates faster than third-party sites do.

When you compare, look at three things: the APY itself, any minimum deposit required to earn that rate, and whether the rate applies to all balances or only balances above a certain threshold. Some banks pay 4.5% on your first $25,000 and a lower rate on anything above that. Others pay the same rate on every dollar. Read the fine print on the account terms page before you open.

Also check whether the bank is FDIC-insured (for banks) or NCUA-insured (for credit unions). This protects your money up to $250,000 if the institution fails. Every major online bank and credit union carries this protection, but it's worth confirming on the account details page.

Why online banks pay more than traditional banks

Online banks have lower overhead costs than banks with thousands of branches. They don't pay rent on building space, don't employ tellers, and don't maintain ATM networks. They pass some of those savings to customers in the form of higher interest rates. Traditional banks use deposits to fund mortgages and business loans, which generate revenue; they don't need to pay high rates on savings to attract deposits because customers come for the convenience of the branch.

The Federal Reserve sets a benchmark interest rate, and banks decide how much of that rate to pass to savers. Online banks compete directly on rate, so they tend to pass more of it along. Traditional banks compete on convenience and brand, so they pass less.

What happens to your rate if the Federal Reserve changes policy

When the Federal Reserve raises its benchmark rate, banks can raise the rates they pay on savings accounts. When the Fed cuts rates, banks cut what they pay savers. Your rate is not locked in for a year or five years the way a CD rate is; it can change at any time, and banks can lower it without notice.

This means a 4.5% account today could become 4% next month if the Fed cuts rates or if the bank decides to lower its rate to reduce costs. You don't lose money you've already earned—interest accrues daily and is deposited monthly—but future interest will be calculated at the new, lower rate.

If rates drop significantly and you want to lock in a higher rate, consider moving some money into a CD at the same bank or a different one. CDs pay a fixed rate for a fixed term (three months, six months, one year, five years, and so on), and that rate doesn't change.

Fees and withdrawal limits to watch for

Most online banks charge no monthly maintenance fee on savings accounts. Some charge a fee if your balance falls below a minimum (often $0, meaning no minimum at all). Check the fee schedule on the account terms page before you open.

Federal rules once limited savings account withdrawals to six per month, but that rule was suspended in 2020 and has not been reinstated. You can withdraw money as often as you want. However, if you withdraw frequently, you're using the account as a checking account, and you should open a checking account instead—savings accounts are meant for money you're setting aside and not touching regularly.

Some banks offer a debit card or checkbook for their savings accounts, which makes frequent withdrawals easier. Others require you to transfer money to a linked checking account first. Ask about this when you open the account if frequent access matters to you.

Moving money between banks without losing interest

When you open a high-yield savings account, you'll need to fund it by transferring money from another bank. This takes one to three business days using ACH transfer (the standard electronic method). During those days, your money is in transit and earning no interest anywhere.

If you're moving a large amount, consider timing the transfer so it arrives on a day the new bank posts interest. Most banks post interest on the first or last day of the month. If you transfer money on the 28th of the month and the new bank posts interest on the 1st, your money will earn interest for only a few days. If you transfer on the 2nd, it will earn interest for the full month.

You can also move money gradually—deposit $5,000 this week, $5,000 next week—so you're not leaving a large sum in a low-rate account while waiting for the transfer to clear.

Frequently Asked Questions

Can I use an online bank's high-yield savings account if I also bank with a traditional bank?

Yes. You can have accounts at multiple banks. Link your online bank account to your traditional bank account, and you can transfer money between them electronically. Many people keep a checking account at a traditional bank for everyday spending and a high-yield savings account at an online bank for money they want to save.

What if I need to withdraw money in an emergency?

You can withdraw money from a high-yield savings account at any time. Transfer it to your checking account (one to three business days) or, if the bank offers it, use a debit card or ATM. The money is yours; there's no penalty for withdrawing it early the way there is with a CD.

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

It depends on the bank. Some banks pay the advertised rate on all balances, no matter how small. Others require a minimum deposit to open the account but then pay the rate on any balance. A few pay different rates based on your balance tier. Check the account terms before you open to know what applies to you.

Is my money safe in an online bank?

Yes, as long as the bank is FDIC-insured. Your deposits are protected up to $250,000 per account type per bank. If the bank fails, the FDIC pays you back. All major online banks carry FDIC insurance; you can verify this on the bank's website or by searching the FDIC's bank database.

What's the difference between a high-yield savings account and a money market account?

A money market account is a hybrid between a savings account and a checking account. It usually pays interest (sometimes at a high rate) but also comes with a debit card or checkbook. High-yield savings accounts typically don't have a debit card. Both are FDIC-insured and have no early withdrawal penalty. Choose based on whether you want check-writing or debit card access.