Where to find a high yield savings account right now

High yield savings accounts are offered by online banks, traditional banks with online divisions, and credit unions. The banks paying the highest rates tend to be online-only operations—companies like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank—because they have lower overhead costs than brick-and-mortar branches. Traditional banks like Chase, Bank of America, and Wells Fargo also offer high yield savings accounts, but their rates are typically lower than online competitors. Credit unions such as Connexus Credit Union and Pentagon Federal Credit Union also compete in this space, though availability depends on membership rules.

Rates change constantly and vary by institution. A bank offering 4.5% APY today may drop to 4.25% next month, or a competitor may raise their rate to 5.0%. The highest rates are usually found on accounts with no minimum balance requirement and no monthly fees. Some banks tie their rate to a promotional period—meaning the high rate applies for three or six months, then drops to a standard rate unless you move your money.

Key Takeaways

  • Online banks typically offer higher rates than traditional banks because they operate without physical branch costs.
  • Current rates vary between 4.0% and 5.35% APY depending on the bank and the date you check, so comparing rates across multiple institutions matters.
  • Some accounts offer promotional rates that expire after a set period, after which the rate drops significantly.
  • Credit unions may offer competitive rates but often require membership through an employer, military affiliation, or geographic location.
  • No account is truly "high yield" if it charges monthly maintenance fees or requires a large minimum deposit.

Online banks with consistently competitive rates

Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank have historically held rates near the top of the market. Marcus has no minimum deposit and no monthly fees. Ally Bank offers the same structure and also provides a no-penalty CD option. American Express Personal Savings requires you to be an American Express cardholder but has no minimum balance. Discover Bank has no minimum and no fees, and also offers a money market account if you want check-writing capability alongside savings.

These banks are FDIC-insured (or NCUA-insured in the case of credit unions), meaning deposits up to $250,000 per account holder are protected if the institution fails. All four allow you to open an account online in minutes and transfer money from another bank via ACH transfer, which typically takes one to three business days.

Traditional banks with online high yield options

Chase, Bank of America, Wells Fargo, and Citibank all offer high yield savings accounts through their online platforms or mobile apps. Their rates are usually 0.5% to 1.5% lower than online-only banks, but the trade-off is that you may have access to physical branches, a larger ATM network, or integration with checking accounts you already hold at that bank.

Chase's high yield savings account, for example, typically pays less than Marcus or Ally but integrates seamlessly if you already use Chase for checking. Bank of America's version offers similar convenience for existing customers. These accounts still have no monthly fees and no minimum balance at most institutions, but the rate difference means your money grows more slowly than it would at an online competitor.

Credit unions and membership-based options

Connexus Credit Union, Pentagon Federal Credit Union, and Connexus Credit Union offer rates competitive with online banks, sometimes higher. The catch is membership: Pentagon Federal requires military service, military family status, or employment with certain government agencies. Connexus is open to anyone in certain states or through employer sponsorship. Some credit unions allow you to join by making a small donation to a nonprofit partner.

Credit union accounts are insured by the NCUA (National Credit Union Administration) up to $250,000, the same as FDIC insurance. Credit unions often have lower fees and more flexible lending policies than banks, but their online platforms and mobile apps may be less polished than those of large online banks. Rates can vary significantly between credit unions, so comparing multiple institutions in your area is worth the time.

How to compare rates and lock in the best option

Visit each bank's website directly and note the APY, any promotional period, and the minimum balance required. Write down the date you checked, because rates move frequently. Some banks publish their rate history, which can tell you whether they tend to raise or lower rates when the Federal Reserve moves. If you see a bank offering 5.0% and another offering 4.5%, the difference on $10,000 is $50 per year—meaningful enough to justify opening an account elsewhere.

Check whether the bank charges monthly maintenance fees, requires a minimum balance to earn the advertised rate, or limits the number of withdrawals per month. Some accounts advertise a high rate but apply it only to balances above $25,000, or charge $10 per month if your balance drops below a threshold. Read the account terms, not just the rate headline. If a promotional rate expires, ask the bank what the standard rate will be after the promotion ends—some banks drop to 0.01% APY once the promotional period closes.

Moving money between banks without losing interest

When you open a new high yield savings account, you can transfer money from your current bank via ACH transfer (Automated Clearing House). This process takes one to three business days and does not interrupt your interest accrual—the new bank begins paying interest as soon as the money settles. You do not lose any interest by switching banks, as long as you move the money before the end of the month in which you open the account.

Some banks offer a bonus for opening a new account and meeting a deposit requirement—for example, $200 if you deposit $25,000 and keep it there for 90 days. These bonuses are separate from the interest rate and can add to your earnings. Read the terms carefully: bonuses usually require the money to stay in the account for a specific period, and if you withdraw it early, you forfeit the bonus.

What to watch for when choosing an account

Avoid accounts that require a minimum balance you cannot meet, charge monthly fees, or limit the number of withdrawals you can make. Some older savings accounts restrict you to six withdrawals per month—a rule that has become less common but still exists at some institutions. Check the bank's mobile app reviews before opening an account; a great rate means nothing if you cannot access your money easily.

Be cautious of promotional rates that expire quickly. If a bank offers 5.25% for three months and then drops to 0.50%, you will need to move your money again to maintain a competitive rate. Some people are comfortable doing this; others prefer a bank that maintains a stable, competitive rate year-round. Both strategies work—it depends on how much time you want to spend managing your accounts.

Frequently Asked Questions

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

Most online banks do not require a minimum balance to earn their advertised APY. However, some traditional banks and credit unions do—for example, requiring $25,000 or $50,000 to earn the highest rate. Always check the account terms before opening. If a minimum is required and you cannot meet it, the bank will pay a lower rate on your balance.

What happens to my interest if I withdraw money from the account?

Interest accrues daily and is usually deposited monthly. If you withdraw money mid-month, you still earn interest on the balance you held during that period. You do not lose interest by withdrawing; you simply earn less interest that month because your balance is lower. Some promotional bonuses, however, require the money to stay in the account for a set period—read the terms to know whether a withdrawal forfeits the bonus.

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

Yes. You can open an account at a new bank and transfer your money via ACH at any time. The transfer takes one to three business days. You do not lose interest during the transfer, and you can close your old account once the money arrives at the new bank. Some people move their money every few months to chase the highest rate; others stay with one bank for convenience.

Is my money safe in an online bank?

Online banks are FDIC-insured the same way traditional banks are. Your deposits up to $250,000 are protected if the bank fails. Online banks are regulated by the same federal agencies as brick-and-mortar banks. The main difference is that you cannot walk into a physical branch, but you can call customer service or use the mobile app to manage your account.

Do I need to have a checking account at the same bank to open a high yield savings account?

No. You can open a high yield savings account at any bank without having a checking account there. You can transfer money from a checking account at a different bank via ACH. Some people keep their checking at one bank and their savings at another to take advantage of different features and rates.