Where to find high-yield savings accounts today

High-yield savings accounts are offered by 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, Capital One 360, and Synchrony Bank. Credit unions often offer competitive rates through networks like CO-OP and Allpoint, though the rate depends on your specific credit union and membership.

Traditional banks with physical branches—Chase, Bank of America, Wells Fargo, Citibank—typically offer savings rates well below 1% APY, even on accounts labeled "high-yield." If you bank with one of these institutions, you will earn more by moving money to an online bank, even after accounting for the time it takes to transfer funds.

Rates change weekly and sometimes daily. The banks listed above have historically led the market, but you should check current rates on each bank's website or a rate-comparison site before opening an account. A difference of 0.25% APY on $10,000 means $25 per year—small enough that convenience or existing relationships might matter more, but large enough to notice over time.

Key Takeaways

  • Online banks consistently offer higher APY than traditional banks with branches, often by 4% or more.
  • The highest-paying accounts change frequently, so compare current rates across Marcus, Ally, American Express, Discover, Capital One 360, and Synchrony before deciding.
  • Credit unions may offer competitive rates, but the APY varies by institution and membership may be able to access.
  • Moving money between banks takes one to three business days, so switching is practical even if you have an existing account elsewhere.
  • FDIC insurance covers up to $250,000 per depositor per bank, so splitting large balances across multiple banks protects your full amount.

Online banks versus traditional banks with online savings options

Online banks have lower overhead than brick-and-mortar branches, which allows them to pass higher rates to depositors. They have no physical locations to staff or maintain, no ATM networks to operate, and no branch infrastructure. This cost difference translates directly to APY: an online bank paying 4.5% APY is not being generous—it is simply not spending money on things a traditional bank must.

Traditional banks do offer online savings accounts, but the rates are typically 0.01% to 0.5% APY. Chase, for example, has offered online savings at rates below 0.1% while its high-yield savings account (a branded product) has paid closer to 0.5%. These are not competitive with online-only banks. The trade-off is convenience: if you already have a checking account at Chase or Bank of America, moving money between accounts is instant, and you can visit a branch if you need cash or have a question.

The practical choice depends on how often you need to access the money. If you are building an emergency fund you will not touch for months, an online bank's rate advantage is worth the three-day transfer time. If you are saving for a purchase in two weeks and want instant access, a traditional bank's lower rate might be acceptable for the convenience.

Credit unions and their high-yield options

Credit unions are member-owned cooperatives, and many offer savings rates competitive with online banks. However, you must be a member to open an account, and membership rules vary. Some credit unions are open to anyone in a geographic area; others require employment at a specific company, membership in an organization, or family ties to an existing member.

The CO-OP Network and Allpoint Network allow credit union members to access ATMs nationwide without fees, which is a major advantage over online banks (which typically reimburse ATM fees or offer limited free withdrawals). If you find a credit union with a high rate and membership you may have access to for, the combination of rate plus ATM access can beat an online bank.

To find credit unions in your area or by membership category, use the CO-OP locator or search creditunion.coop. Call the credit union directly to ask their current savings rate—it will not be posted online as prominently as bank rates, and it may vary by account type or balance tier.

How to compare rates across banks

APY is the only number that matters when comparing savings accounts, because it accounts for compounding frequency. A bank advertising "4.5% interest" and one advertising "4.5% APY" are the same, but a bank advertising "4.5% annual percentage rate" (APR) is different—APR does not include compounding and is used for loans, not savings. Always look for APY.

Rate-comparison sites like Bankrate.com, DepositAccounts.com, and NerdWallet update rates daily and let you sort by APY. These sites are free and do not require you to open an account to see rates. However, they sometimes lag by a day or two, so confirm the rate on the bank's own website before opening an account.

When comparing, also note the minimum deposit required to earn the advertised rate. Most online banks have no minimum, but some credit unions require $500 or $1,000 to open. A few banks offer tiered rates—higher APY on balances above a certain threshold—so check whether the rate you see applies to your deposit amount.

FDIC insurance and protecting your money across multiple banks

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor per bank. If you have $500,000 in savings, you can protect all of it by splitting the money between two FDIC-insured banks: $250,000 at each. The insurance is automatic—you do not need to register or do anything.

This matters because the highest-paying banks change over time, and you might want to move money if rates drop. If you have more than $250,000, opening accounts at two or three banks ensures your full balance is insured. Credit unions are insured by the National Credit Union Administration (NCUA) under the same $250,000 limit, so the same strategy applies.

Online banks are FDIC-insured just like traditional banks. The fact that they have no physical location does not affect insurance coverage. Verify FDIC status on the bank's website or by searching the FDIC BankFind tool.

Opening an account and moving money

Opening a high-yield savings account online takes 10 to 20 minutes. You will need a government-issued ID, your Social Security number, and proof of address (a recent utility bill or bank statement). Some banks verify your identity instantly; others send a confirmation code to your email or phone.

Once your account is open, you can transfer money from another bank using ACH (Automated Clearing House) transfer. This takes one to three business days. Most banks let you initiate the transfer from the new bank's website by entering your old bank's routing number and your account number there. Alternatively, you can transfer from your old bank's website by entering the new bank's details.

If you need money faster, you can withdraw cash from your old bank and deposit it at an ATM or branch of the new bank, though this is less common now that most online banks reimburse ATM fees. Some online banks also offer wire transfers, which are faster (same day or next day) but may cost $15 to $25.

What happens when rates drop

Banks lower savings rates when the Federal Reserve cuts interest rates, which happens during economic downturns or when the Fed wants to encourage borrowing. When rates drop, you have three choices: keep your money where it is, move it to a bank that has not dropped rates yet, or accept the lower rate.

Moving money is free and takes a few days, so there is no penalty for switching banks if a competitor offers a better rate. Some people maintain accounts at two or three banks and move money between them as rates change. Others set a threshold—"I will move if the rate drops below 4%"—and check rates monthly.

The banks that lead on rates today may not lead tomorrow. Ally Bank, Marcus, and Discover have historically been among the first to raise rates when the Fed increases them, but this is not may provide. Check rates at least quarterly if you want to stay with the highest-paying option.

Frequently Asked Questions

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

Most online banks have no minimum balance requirement. Some credit unions require $500 to $1,000 to open an account, but once open, you can deposit any amount and earn the stated rate. A few banks offer tiered rates where higher balances earn higher APY, so read the terms before opening.

Can I withdraw money from a high-yield savings account whenever I need it?

Yes. High-yield savings accounts are savings accounts, not certificates of deposit (CDs), so there is no penalty for withdrawal. You can move money out via ACH transfer (one to three days), ATM withdrawal, or wire transfer (same day or next day, usually with a fee). The only limit is that federal rules once restricted savings withdrawals to six per month, but this rule was suspended and has not been reinstated.

What if the bank fails—is my money still protected?

Yes. FDIC insurance protects your deposits up to $250,000 even if the bank fails. The FDIC will transfer your account to another bank or send you a check. This has happened fewer than 10 times in the past 20 years, and depositors have always been made whole.

Should I move my emergency fund to a high-yield account?

Yes, if you do not need the money for at least a few days. Emergency funds sit unused most of the time, so earning 4% to 5% APY instead of 0.01% adds up. The three-day transfer time is a drawback only if you need cash immediately—in true emergencies, most people use a credit card first and reimburse themselves from savings later.

How do I know if a bank is safe?

Check whether it is FDIC-insured (for banks) or NCUA-insured (for credit unions). You can verify this on the bank's website or by searching the FDIC BankFind tool or NCUA's credit union locator. All major online banks listed here are insured. Avoid banks that do not display insurance information or that are not listed in these databases.