Where to find high yield savings accounts right now

High yield savings accounts exist at online banks, credit unions, and a few traditional brick-and-mortar banks. The highest rates are almost always at online-only institutions because they have lower overhead costs. Banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank have consistently offered rates in the 4% to 5% range, though the exact rate changes weekly based on Federal Reserve decisions and competition.

Credit unions also offer high yield savings through networks like CO-OP and Allpoint, which let you access ATMs nationwide even if your credit union is small. Some traditional banks—Chase, Bank of America, Wells Fargo—offer savings accounts, but their rates are typically 0.01% to 0.05%, which is why they rarely compete for high yield customers.

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 might advertise 4.75% APY, but that rate can drop if the Federal Reserve cuts rates. You should check the current rate before opening an account because it may have changed since you last looked.

Key Takeaways

  • Online banks offer the highest rates because they have fewer physical branches and lower costs to pass on to customers.
  • The rate you see advertised changes frequently and is not locked in for the life of the account unless the bank guarantees it in writing.
  • Credit unions can offer competitive rates and give you access to a nationwide ATM network, even if the credit union itself is small.
  • Traditional banks with physical locations almost never offer rates above 0.5%, so comparing across institutions matters more than staying with your current bank.

Online banks with the highest rates

Online-only banks dominate the high yield market because they do not maintain branch networks. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank are the names you will see most often in rate comparisons. Each of these institutions is FDIC-insured, meaning deposits up to $250,000 are protected if the bank fails.

These banks compete aggressively on rate because they have no other way to attract customers—there is no branch to walk into, no teller to know your name. When one bank raises its rate, others usually follow within days. This competition is why online banks consistently offer rates two to four times higher than traditional banks.

Opening an account at an online bank takes 10 to 15 minutes. You will need a Social Security number, a government-issued ID, and a current mailing address. Most online banks let you fund the account immediately from another bank account using ACH transfer, though the money may take one to three business days to arrive.

Credit unions and their rate advantages

Credit unions are member-owned cooperatives, not profit-driven corporations. Some credit unions offer high yield savings rates that match or beat online banks. The catch is that you must be a member to open an account, and membership rules vary—some credit unions are open to anyone in a geographic area, while others require you to work for a specific employer or belong to a specific organization.

The advantage of a credit union is access to the CO-OP and Allpoint ATM networks, which together cover over 30,000 ATMs nationwide. If you choose a small local credit union, you still get nationwide ATM access without paying out-of-network fees. This matters if you travel or move frequently.

To find a credit union you can join, search the CO-OP locator or Allpoint's credit union finder online. Many people do not realize they are already may be able to access—employers, professional associations, and alumni groups often sponsor credit unions. Rates at credit unions vary widely, so call or visit their website to see the current APY before joining.

Traditional banks and why their rates lag

Chase, Bank of America, Wells Fargo, and other national banks with physical branches offer savings accounts, but their rates are typically 0.01% to 0.05% APY. On a $10,000 balance, that earns you $1 to $5 per year. These banks do not compete on rate because they make money from loans, credit cards, and fees—not from attracting savings deposits.

The only reason to keep a savings account at a traditional bank is convenience: if you need to deposit cash or speak to someone in person, a branch is useful. But if you are looking for interest earnings, moving money to an online bank or credit union costs nothing and takes a few minutes.

Some traditional banks offer slightly higher rates on money market accounts or certificates of deposit (CDs), but these come with restrictions—money market accounts may limit withdrawals, and CDs lock your money away for a set term. A high yield savings account has no such limits.

How to compare rates across institutions

Rates change constantly, so the best way to compare is to visit each bank's website directly and note the APY shown on their savings account page. Do not rely on rate comparison websites alone because they update slowly and may show outdated information. Write down the rate, the minimum balance required (if any), and whether the rate is may provide or subject to change.

Pay attention to the fine print about rate changes. Most banks reserve the right to lower the rate at any time without notice. A few banks have stated they will not lower rates below a certain floor, but this is rare and usually applies only to new customers for a limited time.

Also check whether the bank charges monthly maintenance fees or requires a minimum balance. Most online banks charge no fees and have no minimum, but some credit unions or smaller online banks may. A $0 fee and no minimum balance is standard in this market, so avoid accounts that charge either.

FDIC insurance and account safety

All the banks and credit unions mentioned here are insured by the FDIC or NCUA (National Credit Union Administration). This means if the institution fails, your deposits up to $250,000 are protected. If you have more than $250,000 to save, you can open accounts at multiple banks to stay within the insurance limit at each one.

FDIC insurance covers the account holder, not the account itself. If you and your spouse both own a joint account, you are each covered up to $250,000, for a total of $500,000 coverage on that one account. If you have a savings account and a money market account at the same bank, they are covered separately, each up to $250,000.

Credit unions are insured by the NCUA under the same $250,000 limit. The coverage rules are identical. You do not need to do anything to activate insurance—it is automatic when you open an account at an insured institution.

Moving money from a traditional bank to a high yield account

Transferring money from your current bank to a high yield savings account is straightforward. Log into your new high yield account and look for a link to add an external bank account or link a bank. You will enter your current bank's routing number and your account number. The new bank will send two small deposits (usually under $1 each) to your old account within one to two business days.

Once those deposits arrive, you log back into the new account and confirm the amounts. This verification proves you own the old account. After confirmation, you can transfer money between the two accounts freely. Most transfers take one to three business days.

You do not have to close your old account right away. Many people keep a small balance at their traditional bank for check deposits or cash withdrawals, then move most of their savings to the high yield account. There is no penalty for having accounts at multiple banks.

Frequently Asked Questions

Can the bank lower my rate after I open the account?

Yes. Most banks reserve the right to change rates at any time. When the Federal Reserve cuts rates, banks typically lower their APY within days. You can move your money to a different bank if the rate drops too much—there is no penalty for closing a savings account.

What if I need to withdraw money quickly?

High yield savings accounts have no withdrawal restrictions. You can move money out the same day you request it, though the transfer to another bank may take one to three business days. If you need cash immediately, you can withdraw from an ATM if the bank has ATM access, or transfer to a checking account and withdraw there.

Do I have to keep a minimum balance?

Most online banks and credit unions have no minimum balance requirement. Some smaller institutions may require $100 or $500 to open, but this is uncommon. Check the account details before opening to confirm there is no minimum.

Is my money safe at an online bank I have never heard of?

If the bank is FDIC-insured, your deposits up to $250,000 are protected by the federal government, regardless of the bank's size or how well known it is. You can verify FDIC insurance by searching the bank's name on the FDIC's website. Online banks are just as safe as traditional banks from an insurance standpoint.

What happens if I need to deposit cash?

Online banks do not accept cash deposits because they have no branches. If you receive cash regularly, you can deposit it at your traditional bank's ATM or branch, then transfer the money to your high yield account. Some credit unions accept cash deposits at their branches or partner ATMs.