Where to find high-yield savings accounts right now
High-yield savings accounts pay more interest than traditional savings accounts at most brick-and-mortar banks. The banks offering the highest rates change month to month, but they fall into three categories: online-only banks, credit unions, and a few large national banks that maintain competitive online products.
Online banks typically offer the highest rates because they have lower overhead costs than branches. Credit unions often match or beat online bank rates for their members. Large national banks like Chase, Bank of America, and Wells Fargo offer high-yield options, but their rates usually lag behind online competitors by 0.5% to 1.5% annually.
The rate you see advertised today may change within weeks. Banks raise and lower rates based on what the Federal Reserve does and what competitors are offering. Before you move money, check the current rate on the bank's website — not the rate from an article or comparison site, which may be outdated.
Key Takeaways
- Online banks and credit unions currently offer the highest rates on savings accounts, often 4% to 5% annually, while traditional brick-and-mortar banks typically offer 0.01% to 0.5%.
- Rates change frequently and can shift within days, so you should always verify the current rate directly on the bank's website before opening an account.
- Credit unions require membership but often have no monthly fees and may offer rates equal to or better than online banks.
- Online banks have no physical branches but offer 24/7 customer service by phone, email, or chat, and FDIC insurance protects your deposits up to $250,000.
- Some banks limit how many withdrawals you can make per month, so read the account rules before depositing money you may need to access quickly.
Online banks with competitive rates
Online banks operate entirely through websites and mobile apps, with no physical locations. Because they do not maintain branch networks, they pass savings to customers through higher interest rates. Common names include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360.
These banks are FDIC-insured, meaning your deposits are protected up to $250,000 per account holder per bank. They offer customer service by phone, email, or live chat — usually available 24 hours a day. Most charge no monthly maintenance fees and have no minimum balance requirements, though some require a small opening deposit (often $0 to $25).
The tradeoff is convenience: you cannot walk into a branch to deposit cash or speak to someone in person. If you need to deposit checks, most online banks let you photograph them with your phone. If you need to deposit cash, you may need to transfer it from another bank account or use a partner network.
Credit unions and their membership requirements
Credit unions are member-owned financial institutions that often offer rates matching or exceeding online banks. Unlike banks, credit unions serve specific groups — you might join through your employer, your school, your union, a professional association, or your geographic location. Some credit unions accept anyone who lives or works in their service area.
To find a credit union you can join, use the CO-OP Network or Shared Branch locator on the Credit Union National Association website. Search by your employer, school, or zip code. If you find one that accepts you, membership is usually free or costs $5 to $25 one time.
Credit unions are insured by the National Credit Union Administration (NCUA), which protects deposits up to $250,000 per account holder per institution — the same protection as FDIC insurance. Many credit unions have no monthly fees, no minimum balances, and offer rates competitive with online banks. Some also offer in-person service at physical branches, which online banks do not.
Large national banks with high-yield options
Chase, Bank of America, Wells Fargo, and Citibank all offer high-yield savings accounts, but their rates typically fall below online banks and credit unions. As of recent months, these banks have offered rates between 4% and 4.5% annually on high-yield accounts, while online competitors offer 4.5% to 5.35%.
The advantage of using a national bank is convenience: you can deposit cash at any branch, speak to someone in person, and use a large ATM network. If you already have a checking account with one of these banks, opening a savings account takes minutes online or in a branch.
The disadvantage is cost and rate lag. National banks often charge monthly fees ($5 to $15) if you do not maintain a minimum balance, and their rates trail competitors by enough to cost you real money over time. On $10,000, the difference between 4% and 4.8% is $80 per year — small but real.
How to compare rates and account features
Interest rate is not the only thing that matters. Before opening an account, check four things: the current annual percentage yield (APY), any monthly fees, withdrawal limits, and how you deposit money.
The APY is the rate the bank pays on your balance, expressed as a yearly percentage. Banks must display this clearly on their website. Write down the APY from at least three banks so you can compare. Remember that this rate can change at any time — the bank is not locked into paying you the same rate forever.
Monthly fees vary widely. Some banks charge nothing; others charge $5 to $15 if your balance falls below a threshold (often $500 to $2,500). A few banks waive fees if you set up direct deposit or maintain a linked checking account. Read the fee schedule on the bank's website, usually under "Account Terms" or "Pricing."
Withdrawal limits matter if you think you might need the money soon. Federal rules no longer cap withdrawals, but some banks limit how many you can make per month before charging a fee. If you plan to move money in and out frequently, choose a bank with no withdrawal limits or high limits.
What to do before you move your money
Once you have chosen a bank, opening an account is straightforward but takes a few steps. You will need a government-issued ID, your Social Security number, and proof of your current address (a recent utility bill or bank statement works). Most online banks let you upload these documents through their website.
Some banks require a small opening deposit, usually $0 to $25. You can transfer this from another bank account using the routing and account numbers the new bank provides. The transfer usually takes one to three business days.
Before you close your old savings account, make sure all automatic deposits and withdrawals are set up at the new bank. If you receive direct deposit paychecks, update your employer's payroll system with your new account number. If you have automatic bill payments or transfers linked to the old account, change those too. Wait at least one full pay cycle to confirm everything is working before closing the old account.
Frequently Asked Questions
Is my money safe in an online bank?
Yes. Online banks are FDIC-insured the same way brick-and-mortar banks are, protecting your deposits up to $250,000 per account holder per bank. The FDIC insurance is backed by the U.S. government. The only risk is if you deposit more than $250,000 in a single account at a single bank — the amount above that is not insured.
Can I withdraw money whenever I need it?
Yes, but some banks limit the number of withdrawals per month before charging a fee. Federal rules no longer cap withdrawals, so this is up to each bank. Check the account terms before opening. Most online banks allow unlimited withdrawals with no fee, but a few charge $10 per withdrawal after a certain number per month.
How do I deposit cash if the bank has no branches?
Online banks do not accept cash deposits directly. You can transfer cash from another bank account you own, or use a partner network — some online banks partner with retailers like Walmart or CVS to accept cash deposits. Check the bank's website for deposit methods before opening an account.
What happens if the bank fails?
The FDIC takes over the bank and transfers your deposits to another insured bank, usually within one to two business days. You keep your money up to the $250,000 limit. This has happened fewer than 20 times since 2008, and depositors have not lost money in FDIC-insured accounts.
Do I need to keep a minimum balance?
Most online banks and credit unions have no minimum balance requirement. Some large national banks require $500 to $2,500 to avoid monthly fees. Check the account terms on the bank's website — the minimum is usually listed under "Account Requirements" or "Fees."