ElitePersonalFinance found the best high-yield savings accounts of December 2025

One of the most innovative ways to grow your money, high-yield savings accounts (HYSAs) have quickly become the go-to alternative for beginner and advanced investors looking to maximize savings and keep money away from traditional savings accounts yielding 0.01% APY. Today’s high-yield savings accounts offer returns of up to 5.00% APY, providing the power of compounding interest on interest.

Let ElitePersonalFinance guide you on the path to maximizing your idle money by utilizing savings accounts from reputable options, such as Axos to Barclays, all to secure a financially sound future.

Why You Should Trust ElitePersonalFinance?

At ElitePersonalFinance, we strongly advocate against traditional savings accounts and favor those that offer up to 5.25% APY, which exceeds the national average. Today, there is no shortage of viable options from Capital One, Ally, and Discover, among other reputable platforms that provide high returns and extra perks, such as no monthly maintenance fees, no minimum balance requirements, and FDIC insurance for peace of mind.

There are many things you can do with a high-yield savings account, from establishing an emergency fund to saving for a big purchase or keeping your money active, while keeping your funds easily accessible at any time. Additionally, it’s an excellent way to avoid the volatility of the stock market, as well as any hidden fees, for complete safety and transparency.

Keep reading and let ElitePersonalFinance walk you through the world of high-yield savings accounts, including our top recommended options, account terms, what to look out for, and which type of high-yield savings account works best for your personal financial situation.

Raisin

Boasting over 75 products on a single platform, Raisin connects users with high-yield savings accounts and CDs from leading federally insured US banks and credit unions, offering rates of up to 4.36% along with welcome bonuses of up to $1,000 for new sign-ups. Unlike Axos and Barclays, a single login can provide access to multiple savings products, offering a great way to avoid opening individual accounts and the associated mess.

Another qualification for up to $1,000 in bonuses requires you to meet APY thresholds, depending on the partner account you select. Whether you’re looking for a single high-yield account or want to diversify across different platforms, Raisin provides one secure login for all.

What We Like:

• 75+ high-yield savings products
• Competitive APYs up to 4.36% (savings accounts); up to 4.45% on CDs
• No thresholds on certain accounts (as well as $1)
• Up to $1,000 for qualifying deposits on select products
• Top-notch compliance and security standards
• $500 savings account bonus when signing on as a new customer (promo code)

What We Don’t Like:

• Works with partner institutions; not directly
• Only SMS-based 2FA
• Variable APYs are subject to change
• Not the most sophisticated external bank linking

Eligibility & Next Steps:

• Identity verification, external bank connection, and funding
• Completed application through the Raisin portal
• Transfers take between 1 and 3 business days

Terms: Raisin Checking is an online marketplace that allows you to compare savings accounts and how they compare to each other. APYs offered depend on account balance tiers and eligibility, with no monthly maintenance or minimum balance requirements applying to most. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount you spend, and any available promotions.

CIT Bank

A division of First Citizens Bank, CIT is a highly reputable digital bank that offers two high-yield savings products – Savings Connect and Platinum Savings. Savings Connect provides a flat 4% APY with a minimum deposit of only $100, whereas Platinum Savings delivers a 4.10% APY with a $5,000 minimum balance.

Benefits of using CIT Bank include no monthly service fees, compounded interest, and FDIC protection. Additionally, we appreciate its online platform, which offers extra features such as mobile check deposit and same-day internal transfers. Plus, CIT provides a First Citizens Self-Directed Investing account, which allows you to choose a manager for your investments. This is a suitable choice for everyone, from novice to experienced traders.

What We Like:

• Solid APYs up to 4.10%
• Low $100 minimum deposit for Savings Connect
• No monthly maintenance fees
• FDIC-insured
• Simple and highly intuitive online platform

What We Don’t Like:

• Required $5,000 minimum on Platinum Savings
• Limited branch access and ATM network
• Variable APYs are subject to change
• No in-person customer service

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Minimum opening deposit
• Completed application through the CIT Bank portal

Terms: CIT Bank High-Yield Savings is a savings account. It offers APYs as high as 4.65%. For example, if you have $10,000, you could earn up to $465 in interest per year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any CIT Bank savings account or high-yield savings account depends on several factors, such as balance tiers, daily/monthly/quarterly compounding interest, and any available promotions.

SoFi

One of the most popular digital banks, SoFi’s Checking and Savings program meets expectations, offering 4.60% APY on savings balances and 0.50% APY on checking balances. Unlike brick-and-mortar banks, these are limited (no account, overdraft or minimum balance requirements), making it especially popular with college-age students and those entering the workforce.

Additionally, all deposits are FDIC-insured up to $2 million, which exceeds the standard $250,000 coverage limit.

Additionally, users can diversify across various financial products, such as loans and credit cards, and easily manage them through its simple mobile app. Along with extra features like budgeting tools and automatic savings (plus cash back offers on select products), SoFi is truly a one-stop shop.

What We Like:

• High 4.60% APY on savings account
• FDIC insurance up to $2 million
• No account, overdraft, or minimum balance fees
• Earlier intuitive mobile apps with extra features, e.g., cash back offers

What We Don’t Like:

• Direct deposit required on the highest APY offer
• No in-person customer service (online/chat-based)
• Not the most cash deposit options

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Minimum opening deposit
• Completed application through the SoFi portal

Terms: SoFi Savings is a savings account. It offers APYs as high as 4.60%. For example, if you have $5,000, you could earn up to $230 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any SoFi savings account or high-yield savings account depends on several factors, such as balance tiers, daily/monthly/quarterly compounding interest, and any available promotions.

Amex

Known for its high-end credit cards, American Express excels with its 4.25% APY High-Yield Savings Account, which charges no monthly fees and requires no minimum deposit, making it an excellent choice for both new savers and seasoned veterans. As you know, one of its key benefits is compounding interest daily with monthly payouts, allowing for steady growth without the fluctuations of the stock market.

One downside to American Express is the lack of a checking account. However, its HYSA works well for external accounts, allowing transfers with FDIC insurance of up to $250,000. Plus, it offers 24/7 customer service and a straightforward online interface. For the best combination of brand loyalty and a simple APY to rely on, American Express works very well.

What We Like:

• Reputation as a premium brand
• 4.25% APY with no minimum deposit
• No monthly maintenance fees
• FDIC insurance up to $250,000
• Simple and easy-to-use online interface

What We Don’t Like:

• No checking account available
• No in-person branches
• No extra perks on mobile app (e.g., budgeting tools)
• Variable APYs are subject to change

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Completed application through American Express’ website with a linked external account

Terms: American Express High-Yield Savings is a savings account. It offers APYs as high as 4.25%. For example, if you have $10,000, you could earn up to $425 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Barclays

One of the most internationally recognized banks, Barclays Bank, offers a 4.35% APY Online Savings Account with no monthly fees and no minimum required deposit. All deposits are FDIC-insured up to $250,000. Interest accrues daily, leveraging compounding power, which allows you to avoid the volatility of the stock market.

Plus, Barclays’ tiered savings programs also allow you to earn rates up to seven times the national average, depending on your qualifying balance. For example, if your balance is lower, you can earn 3.90% APY versus 4.10% APY for balances of $250,000 or greater. It also comes with a proprietary “Savings Assistant” that allows users to set savings goals, which work towards saving up for a down payment on a mortgage or other extra expenses.

Note that, although Barclays’ 4.35% APY Online Savings Account lacks severely in another area, such as not offering a checking account or debit card.

What We Like:

• No minimum deposit on 4.25% APY
• FDIC insurance up to $250,000
• 24/7 access to funds
• Includes Barclays Savings Assistant tool for budgeting

What We Don’t Like:

• No physical branches in the United States
• Limited mobile app features
• Up to a few days are needed for transfers
• No special bonuses or promotional APYs

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Completed application through the Barclays website

Terms: Barclays Online Savings is a savings account. It offers APYs as high as 4.35%. For example, if you have $10,000, you could earn up to $435 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Axos Bank

Like Ally, Axos Bank is a digital-only bank that offers Axos ONE, a High-Yield Savings Account with APYs of up to 4.46%, depending on qualifying balances. With more than 20 billion dollars in total assets and 400,000+ customers and an average 4.7-star rating in the Apple Store, Axos’ reputation is pretty on point.

Plus, Axos Bank is also known for its expansive ATM network (95,000 fee-free ATMs in the country compared to ~15,000 for Chase) and generous fee structure, with no monthly maintenance, minimum balance, overdraft, or origination fees. Additionally, FDIC insurance coverage increases to $250,000. The expanded option can go up to $265 million (although you’re unlikely to qualify). Plus, it offers an early payday program that allows you to get your money up to two days before your next paycheck.

When comparing annual percentage yields, Axos Bank outshines traditional banks like Chase, Bank of America, and Wells Fargo, which offer rates as low as 0.01% for yearly earnings averaging a dollar. In turn, the $8,000 balance held at Axos can provide new earnings of $446. Note that earnings will also depend on the amount you deposit, the time held in the account, and the earned interest rate variability over time.

What We Like:

• APYs up to 4.46%
• Network of over 95,000 fee-free ATMs
• No monthly maintenance fees
• FDIC insurance up to $250,000
• Easy and intuitive online app
• Diverse financial products, including mortgages, personal loans, and auto loans

What We Don’t Like:

• High checking account requirements ($1,500 in monthly qualifying direct deposits and maintain $1,500 in average daily balance)

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Completed application through the Axos website

Terms: Axos Bank High-Yield Savings is a savings account. It offers APYs as high as 4.25%. For example, if you have $10,000, you could earn up to $425 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any Axos Bank savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Capital One

Capital One is one of the most popular banking options in the United States. We strongly recommend its 360 Performance Savings account, which offers an APY of around 4.30%, beating the national average. Plus, it has no monthly maintenance fees and no minimum deposit requirements, making it a flexible option for anyone looking to start saving seriously without restrictions.

One of the best aspects of Capital One is its intuitive website and mobile app, which come equipped with a wealth of tools to promote financial literacy. For example, users can set up automatic savings for recurring transfers or hit savings goals by rounding up to the nearest dollar. With the ability to earn over $3,500 in interest on a high-yield savings balance of $15,000 held for 5 years, Capital One offers a surefire win.

What We Like:

• Competitive APY (~4.30%)
• FDIC insurance to $250,000
• No monthly fees and no minimum opening deposit
• Intuitive mobile app with automatic savings tools

What We Don’t Like:

• APYs are subject to change based on market rates
• Not as many physical branches as traditional banks
• No 24/7 support
• ATM card not available for the savings account

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Completed application through the Capital One website

Terms: Capital One 360 Performance Savings is a savings account. It offers APYs as high as 4.25%. For example, if you have $10,000, you could earn up to $425 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Discover

Discover is one of the more reputable banks in the area. They promise interest rates over five times the national savings average, with a 3.50% APY, and offer $0 monthly fees, no minimum opening deposit, and no balance requirements. Plus, all deposits are FDIC insured up to $250,000, providing peace of mind. That’s an accidental 0.01% yield offer, which is also available at PNC Bank, at 0.03%.

One of the best aspects of Discover is its highly intuitive website, which is centered on education. It features an easy-to-use high-yield online savings account calculator that allows you to input an amount and a savings timeframe to estimate the total interest earned. For example, saving $15,000 over 5 years could net $2,815.

What We Like:

• Offers around 4.35% APY
• FDIC insured up to $250,000
• $0 monthly fees
• No minimum opening deposit
• Better rates than traditional banks

What We Don’t Like:

• APYs lesser than fintech
• Not that many branch locations
• No 24/7 live phone support
• So-so mobile app functionality

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Completed application through the Discover website

Terms: Discover Online Savings is a savings account. It offers APYs as high as 4.30%. For example, if you have $10,000, you could earn up to $430 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Forbright

One of the leading names in sustainable banking, Forbright offers excellent savings options with a high yield of 4.25% APY, no fees, a minimum deposit of $0, and no hidden charges. It’s won numerous awards, including the US News and World Report Editor’s Choice Award for 2025. It is also an official partner of the National Park Foundation.

Arguably, its biggest draw is its focus on sustainability. It’s currently investing in renewable energy and green initiatives, enabling customers to support a healthier world. For example, saving $30,000 over four years not only earns you compounding interest but also deposits that work towards helping fund climate-positive lending.

What We Like:

• Competitive APYs at 4.25%
• FDIC insured up to $250,000
• $0 monthly maintenance fees
• Focus on sustainability
• Intuitive online banking platform

What We Don’t Like:

• Not as many account options as larger banks
• No in-person customer service
• Average mobile app functionality

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security Number
• Completed application through the Forbright website

Terms: Forbright Bank High-Yield Savings is a savings account. It offers APYs as high as 4.00%. For example, if you have $10,000, you could earn up to $400 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

What Are High-Yield Savings Accounts?

High-yield savings accounts (HYSAs) are financial products offered by banks that promise interest rates anywhere from 5 to 10 times the national average compared to traditional savings accounts.

Typically offered by traditional Banks, fintechs and credit unions like Chase, Wells Fargo, and Bank of America, in addition to options like Raisin, CIT Bank, SoFi, and Discover, APYs on high-yield savings accounts typically range from 4% to 5.5%, how far outcry from traditional savings account yields of 0.01%–0.50% APY. They promised daily or monthly compounded interest (running interest on top of your interest) with full liquidity, allowing you to withdraw up to six times per month, in accordance with Regulation D policy.

Additionally, there are options like Raisin’s, which function more as aggregators, providing internet access to multiple Banks and credit unions without requiring separate accounts for each Institution. Others, like Forbright and Offerank, offer excellent promotional rates (as long as you meet the qualifying balances). While others, such as Amex and Barclays, offer more traditional options with straightforward APYs that are slightly lower than those of fintechs.

As a hypothetical example, depositing $10,000 in a SoFi HYSA at a 4.6% APY will allow you to earn $460 in interest after one year (versus only $1 at a traditional bank with a 0.01% APY).

Additional perks of having savings accounts at banks like Axos and Barclays include no monthly maintenance fees, FDIC Insurance up to $250,000, extra budgeting tools, and less volatile long-term wealth growth compared to traditional stocks and ETFs. Note that most HYSAs are online only, so those who prefer in-person banking may need to adapt or look elsewhere.

In addition to these perks, we don’t forget that your savings account is all about flexibility. Unlike alternative Investments like fixed-term bank certificates of deposit, high-yield savings accounts allow you to deposit and keep money there for as long as you want, while allowing funds to be freely withdrawn up to a monthly limit without accruing penalties. Thanks to this, many users have turned to it as an emergency fund or a safe place to park cash while earning interest rates five times the national average.

Lastly, remember that it’s a long-term financial planning process. It’s an excellent way to allow your money to compound, regardless of what federal interest rates are or the current market conditions. They serve as a wonderful complement to more aggressive investment strategies such as stocks and ETFs, helping to diversify against Market volatility.

All in all, we highly recommend high-yield savings accounts to grow your funds safely while offering easy access to cash.

Are High-Yield Savings Accounts FDIC-Protected?

Yes, high-yield savings accounts offered by qualifying banks are fully FDIC-protected (or NCUA-insured at credit unions), covering up to $250,000 per depositor per account. Joint accounts are insured up to $500,000. This means that your bank will refund deposits within one business day if the transaction fails, provided you’re under the $250,000 limit.

For example, if you have $450,000 in a high-yield savings account, only $250,000 is short-term. That’s why we highly recommend splitting your proceeds between two or more FDIC-insured Banks (e.g., two with a $400,000 total balance and three if you have a total $740,000 balance).

Keep in mind that FDIC Insurance also covers other Financial products such as checking accounts and certificates of deposit. Note that aggressive investments, such as stocks, ETFs, and mutual funds, are not protected under the FDIC, which offers high-yield savings accounts a competitive advantage. Additionally, users can link multiple accounts for easier access to funds while maintaining FDIC coverage. It’s an excellent tool for anyone with larger savings balances without the need to sacrifice access to money.

To verify FDIC Insurance, visit your bank’s website and check for the FDIC logo, or use the FDIC’s BankFind tool (https://banks.data.fdic.gov/bankfind-suite/bankfind) to search for the member Bank.

Is It Worth Putting Money Into a High-Yield Savings Account?

In one word, absolutely. If you want higher returns (4.00%–5.50% APY vs. 0.01%–0.50% at traditional banks), easy liquidity, and safety through FDIC Insurance up to $250,000, then HYSAs may be a good option for you.

However, you also want to be mindful of Federal Regulation D, which limits withdrawals to six per month (although existing waivers are available if you exceed this number). Secondarily, tax-advantaged growth through IRAs or 401(k)s may offer higher growth rates (albeit with strict withdrawal rules, such as poor liquidity due to early withdrawal penalties before reaching the age of 59½), which may be a better option for retirement-focused investing.

Plus, depending on the bank, e.g., Axos and Forbright, you should deposit a minimum amount of up to $500 to open an account. If you can stomach these downsides, then savings accounts are excellent for saving towards emergency rainy-day funds, and all expenses, such as travel or work, can be covered during periods of economic volatility.

What Are The Typical High-Yield Savings Account Rates?

Typical high-yield savings rates depend on the bank, as well as macroeconomic factors such as the Federal Reserve Benchmark interest rate and any promotional offers available. Expect anywhere from 4% to 5.50%, which beats the low 0.01%-0.50% APYs that traditional Banks like Chase offer.

For example, Raisin works as an aggregator connecting you with multiple Bank partners that can offer upwards of 5.25% APYs, whereas CIT Bank is known for promotional rates in the 5% territory. In turn, SoFi does it differently, bundling high-yield savings rates with extras like cash back debit rewards programs. Others, such as Amex and Barclays, are more straightforward with APYs in the 4.50% range.

In short, high-yield savings accounts offer a significantly higher yield than traditional savings accounts. Be sure to choose your bank depending on a variety of factors, such as (of course, APY rate), its online banking interface, cash back rewards programs, and other extra benefits. Everyone deserves a safe, FDIC-insured account to rely on.

Pros and Cons of High-Yield Savings Accounts

Here are the pros and cons of high-yield savings accounts

Pros:

• Higher Returns Than Traditional Savings Accounts

Compared to traditional banks, high-yield savings accounts beat them. For example, a Traditional Bank can offer you 0.5% APY on $15,000, which would only generate $75 in interest versus $750 over a year at a Raisin partner bank. This makes it a more attractive option for emergency rainy-day funds or short-term savings goals.

Additionally, your savings accounts offer the opportunity for compounding or monthly interest, allowing interest to be earned on top of your initial interest. For example, SoFi compounds interest daily and offers additional benefits, such as cash back debit cards for extra savings. Even a small initial deposit can yield significant growth over time compared to a traditional account.

• FDIC/NCUA Insurance

Another benefit of your savings account is that it is insured up to $250,000 by the FDIC or NCUA per depositor per bank. All of our recommended Banks offer this if the drop occurs. If you have fun at an expense of over $250,000, then we recommend splitting your funds across multiple Banks. For example, you could keep $250,000 at Amex and $200,000 at Barclays to ensure that your total deposits are not lost in case of an economic catastrophe.

Plus, FDIC/NCUA Insurance offers peace of mind compared to funds held in the stock market, which is exposed to high volatility, providing a predictable place to keep your cash. If you want both growth and security without macroeconomic conditions hitting your balance, high-yield savings accounts are the way.

• Liquidity

Nowadays, many people want to take advantage of high-yield savings accounts for liquidity. For the current rules, banks allow up to six withdrawals every month without incurring penalties, thanks to Regulation D. This US federal banking rule oversees withdrawal and transfer rules for savings and money market accounts.

This makes your savings accounts a practical option for short-term goals. For example, a Forbright Bank account owner can transfer money from a checking account to cover a car payment while continuing to earn interest on the remaining balance, offering greater flexibility.

Plus, it’s very easy to move funds quickly between different accounts.

• Easy Online Interfaces

Two banks worth mentioning are SoFi and Capital One, known for their easy-to-use, intuitive interfaces that allow users to perform a range of tasks, from setting up automatic contributions to transferring funds between accounts. The easier the online interface, the easier it is to monitor growth over time.

Even novice account holders can take advantage of the ease of use, which also applies to other tools, such as interest deposit notifications and account linking. For example, Barclays allows for easy transfers with the easy linking of multiple accounts. In contrast, Raisin provides an easy-to-use, at-a-glance view of multiple partner banks in one interface, allowing users to stay organized and focused.

• No or Low Fees

Today, expect minimal or no monthly maintenance fees with your savings accounts, which allows for even greater interest compounding. For example, Barclays offers zero monthly fees while maintaining high PYs, enabling you to earn a quick return on your investment. Additionally, banks like SoFi provide extra perks, including bonus interest for completing specific objectives, such as linking external accounts, all in a risk-free manner.

• Automotive Savings Tools

Today, baby, your savings account comes with automatic built-in tools that make saving a breeze. It’s also very easy to set up automatic transfers from second savings and vice versa, as well as participate in Roundup programs that save your change by the cent, up to the dollar.

There are even options to categorize your savings for different purposes. One of the best examples is Ally Bank, which allows you to organize your money to save for various goals, such as an emergency rainy-day fund or a desired purchase. We’re always big fans of anytime savings that can be hands-off and allow us some free time.

• Safe Principal

With high-yield savings accounts, you can expect your deposits to be safe. Market productivity and a bankrupt Bank will not affect your emergency funds or short-term savings, since depositors are protected up to $250,000 per Institution, making it one of the safest ways to keep your cash.

Cons:

• Limited Growth Potential

Although HYSAs offer significantly better returns than traditional savings accounts, other, more versatile options, such as stocks, ETFs, and real estate, may offer even higher returns. For example, a $50,000 deposit in an Ohio savings account at a 5% rate can yield $2,500 in a year, which is comparable to returns on the stock market.

For example, investing in the growth stock Hims & Hers (HIMS) could have earned you $60,000 plus over the same period with a 20% plus assumed gain. However, keep in mind that investing in stocks and ETFs comes with the risk of higher volatility.

• Withdrawal Limits

One of the main drawbacks to your savings account is the six withdrawals per month limit. If you’re looking to plan frequent withdrawals to cover ongoing expenses, then your savings accounts may not be the proper choice for you. If you’re looking to make more than six withdrawals per month, consider SoFi, which allows customers to manage both high-yield and cash management accounts and withdraw higher balances each time.

• Subject to Rate Fluctuations and Inflation

The Federal Reserve’s benchmark interest rate fluctuates over time, affecting high-yield savings rates. Although promotional rates in the 5% range are offered, expect macroeconomic conditions to cause a decline, which may result in a lower interest rate. That’s why it’s crucial to monitor APY changes on a monthly basis.

Even with the most recognized banks, the rate drop can cause you to reconsider other banks’ competitive yield offers. That’s why we highly recommend aggregators like Raisin, which provides access to multiple banks without requiring the creation of entirely new accounts every time.

Another thing to consider is the ever-present threat of inflation risk, where purchasing power decreases over time as inflation exceeds your Bank’s APY. For example, if inflation is 6% but your high-yield savings account earns 4%, there’s no return. However, HYSAs continue to be a viable option, especially under all-time macroeconomic conditions, while providing an excellent way to store your money and enjoy liquidity.

• Online-Only Features

Unfortunately, most of our recommendations are limited to online banking. A large percentage of the population prefers in-person banking in physical branches, which limits one’s ability to deposit cash or connect one-on-one with a service advisor.

However, digital-first models compensate with lower overall fees (thanks to reduced overhead), equitable chat-only options, and ease of use, especially with SoFi, Capital One, and American Express.

All in all, online-only features do have limitations, but they offer easy trade-offs in return.

• Minimum Deposit Requirements

Another downside to high-yield savings accounts is the required minimum deposit. Although it’s not the most fantastic news, newspapers can have a difficult time. However, keep in mind that higher APY tiers offer bonus interest, which can be earned with minimum deposits, such as those provided by CIT Bank, which can put you better off in the long run. Opt for banks with no or low minimum deposit requirements.

• May Face Account Restrictions

Unfortunately, your savings accounts may impose restrictions. For example, you may be required to make direct deposits or maintain a minimum balance to enjoy promotional benefits. If your balance also drops below a certain point, then your account may be frozen or your APY reduced.

How to Choose the Best High-Yield Savings Account Rates

When comparing HYSAs, it’s essential to consider several factors, such as your savings goals, current balance, number of estimated monthly withdrawals, and the bank’s perks.

Here are some strategies on how to choose the best high-yield savings account rates:

Compare APYs

One of the most important aspects of choosing the best savings rates is to evaluate the APY, as even a slight difference between banks can result in a difference of thousands of dollars over a year or more. For example, you can expect to earn $2,000 in interest annually when depositing $50,000 into a 4% APY high-yield savings account.

At another bank, you may be earning 4.5% for the same, which results in a difference of $250 per year. Always keep in mind that promotional rates are rarely offered again. Be sure to read the fine print to understand how long the advertised rate applies for and what the normal APY is after that.

What Is the Difference Between a High-Yield Savings Account and a Traditional Savings Account?

Both high-yield savings accounts (HYSAs) and traditional savings accounts are vehicles for earning interest over time.

However, the most significant difference is in the annual percentage yield. Traditional banks, such as Chase, Bank of America, or Wells Fargo, offer APYs of up to 0.05% (with a yearly interest of no more than $10 on a $10,000 deposit). In turn, HYSAs can offer an APY as high as 5.25%, which earns up to $525 a year on a $10,000 balance, all with no extra effort required.

Secondarily, traditional savings accounts are tied to in-person locations with face-to-face transactions. In turn, HYSAs primarily operate online, with deposit transfers and related activities tied to mobile apps and websites. However, it’s easier to facilitate account transfers with easy-to-use and straightforward online interfaces that offer instant access to other perks, such as budgeting tools and cash-back opportunities.

Alternatives to High-Yield Savings Accounts

Although high-yield savings accounts offer short-term goal power, it doesn’t apply to every situation. Whether you’re looking for greater flexibility, higher returns, or check-writing ability, here are five alternative options worth considering:

Certificates of Deposit (CD)

Certificates of Deposit (CDs) lock your funds in for a fixed term, typically offering higher interest rates than your savings accounts. Fixed terms can range anywhere from 1 month to 5 years. Any early withdrawals could incur penalties, which could reduce your yield. We encourage you to leave your money untouched.

For example, CIT Bank and Barclays offer solid CD rates of 5% or higher. A $100,000 deposit in a 12-month CD at a 5% APY could yield $5,000 in interest a year, assuming no withdrawals. If you don’t need the money quickly and want a guaranteed return while enjoying certainty (as opposed to the fluctuating rates of your savings accounts), then CDs could work well for you.

Money Market Accounts (MMAs)

Money market accounts offer a mix of savings and checking account benefits. Expect to pay higher interest rates than traditional savings accounts (but lower than HYSA accounts). It also beats HYSAs in terms of check-writing ability and liquidity, with potentially higher yields than HYSAs for larger balances. In short, it’s a safe place to park your cash temporarily versus HYSAs, which are more focused on saving towards goals.

Treasury Bills (T-Bills)

Backed by the US government, Treasury bills are short-term government securities (think stock market action) that are sold for a lower price—their face value, after paying interest over a period of four weeks to a year.

For example, if you invest $100,000 in a 26-week T-Bill at 4%, you could earn approximately $4,000 once it matures. The liquid value is relatively high, which means you can inform them that they have reached their maturity, although you may be subject to fluctuating market prices.

If you want to purchase treasury bills, visit Treasury Direct or your favorite brokerage account. All in all, treasury bills are well-suited for more conservative investors seeking stabilized returns with higher yields and HYSAs during periods of economic uncertainty.

Short-Term Bonds

With maturities ranging from 1 to 3 years, conservative investors can also take advantage of short-term bonds, which offer yields better than some high-yield savings accounts, typically in the 4% to 5% range. Interest is paid regularly, with the principal returned at maturity. With shorter terms, short-term bonds are less subject to interest rate changes.

I Bonds

I Bonds are US government-backed savings bonds that provide a hedge against inflation. They combine both fixed and inflation-adjusted interest rates, calculated every six months, which the Consumer Price Index determines. For example, if you buy $20,000 worth of I-Bonds, then your interest accrual will be protected against inflation, improving your purchasing power.

This text remains of interest until redemption. One downside, however, is that there are annual purchase limits (which are $10,000 per person per year and $5,000 in paper bonds with tax refunds, along with a required one-year holding period).

Credit Union Share Certificates

Another lesser-known option is credit union share certificates, which guarantee fixed returns at higher rates than banks. However, certain deposits do have flexible terms and bonus rates. For example, it’s not surprising to find a 12-month share certificate offering upwards of 5% APY, which means you can earn $5,000 on a $100,000 deposit.

Please note that you must be a credit union member, and early withdrawals may incur expected penalties.

Ultra-Short-Term Bond Funds

Arguably the least popular option on this list, ultra-short-term bond funds have maturity dates of less than a year. They offer better yields than traditional savings accounts with greater flexibility than certificates of deposit.

For example, you can earn approximately $2,000 in annualized returns at 4% on a $50,000 investment, which varies based on market conditions. However, one big downside is that it’s not FDIC-insured, and interest rates affect its value slightly.

All in all, users enjoy moderate income streams and greater liquidity than other financial products using short-term bonds.

What Are the Benefits of the Best Savings Account Rates?

Here are four benefits of the best savings account rates:

Higher Earnings

One of the best draws of how your savings accounts work is the ability to compound interest on interest. Avoid the 0.01% yield offer from traditional banks like Wells Fargo and opt for high-yield options from CIT Bank, Axos Bank, Forbright, and our other recommendations, which offer APYs of 4% to 5.5%.

For example, Raisin, SoFi, Barclays, or CIT Bank offer 4% — 5.5% APY, which means you can be earning over $1,000 a year at a 5.25% APY Raisin partner bank versus only $20 at a typical checking account for the same balance. Plus interest earning upon interest (compound the interest) allows your savings to grow even more while doing nothing.

Security on Point

We recommend looking at FDIC- or NCUA-insured institutions, which protect your deposit up to $250,000 per person per bank. This allows you to enjoy higher returns without worrying about market risk or periods of economic uncertainty.

Additional Features

Some of the best savings accounts offer perks beyond high APYs, including budgeting tools and promotional bonuses. For example, SoFi is wildly popular for its cash-back credit cards, whereas linking a checking account can net you benefits with CIT Bank. Remember, saving money should be fun too.

What Are the Best High-Yield Savings Accounts?

The best HYSAs offer a nice combination of competitive annual percentage yields, little to no fees, user-friendly online interfaces, and extra perks like budgeting tools and excellent customer service.

Plus, you have to ensure FDIC insurance, which guarantees your deposit money, along with flexible withdrawal options that let you take out your money without paying penalties. Extra bonuses go to any higher savings account with automatic savings tools, budgeting apps, and cash-back offers that allow extra bang for your buck.

How to Open an Account With the Best Interest Rates

Not only is it essential to identify the best savings account, but opening and setting up your account is what makes or breaks the process. One of them can mess up and affect how much interest you earn.

Here’s a step-by-step guide on how to open a high-yield savings account with the best interest rates:

Perform Thorough Research

Before opening an account, please review all of our recommendations and understand that not all advertised APYs are the same. Many are promotional rates expiring within six months, whereas others require a balance to be linked to a checking account. Compare options side by side to evaluate compatibility, not just the highest interest rate.

Additionally, consider monthly fees, minimum balance requirements, and the availability of physical branches. Note the fine print to understand what happens if your balance falls below a certain threshold and how it affects APY, as it only matters if you can meet the account’s terms and conditions.

Do not forget to read customer reviews, preferably from third-party review sites like Trustpilot, which can give you insight into everything from response times to transfer speeds. Higher-than-average yields may not be worth it if you have limited customer support or a lack of backup when issues arise. Additionally, it provides insight into resolving disputes for a better banking experience.

Get Documentation Together

When opening a new savings account, you will need several items, including a valid government-issued ID, such as a driver’s license, your Social Security number, proof of income, and a recent utility bill or other proof of address. For online applications, be prepared to upload scanned or PDF copies of all required documentation to expedite the account verification process.

When going through this process, ensure that all your documentation is up to date. Do not use mismatched names or outdated utility bills, and ensure you have extra copies of all documents to prevent any delays or processing issues. It’s not uncommon for banks to request additional information beyond what you’ve provided. Let’s try to avoid all complications altogether.

Submit Your Application

Once you’ve chosen a bank, the next step is to complete an application. The application can be completed in as little as 20 minutes (far less time than with traditional banks that require in-person visits). Be accurate with all your details, such as name and address, and sign your name to all documentation once you’ve agreed to the terms and conditions.

After you submit your application, keep an eye on your email or account portal for any requests from the bank. Sometimes, additional verification may be required, such as a video call, to verify identity. Be sure to respond to these types of requests as promptly as possible to avoid missing out on promotional rates or other timely benefits.

Add Money to Your Account

Once you’ve researched accounts, gathered supporting documentation, and submitted your application, it’s time to fund your new account.

All of our recommendations allow deposits as little as $1, with electronic transfer from existing checking accounts being the most popular option. The second and third options include check and wire transfer. Please note that promotional APYs take effect once you’ve deposited a minimum balance within the first X days after your application is submitted. Therefore, it’s recommended that you add money to your account promptly.

One of the best ways to set up money in your account is through recurring deposits from your checking account to your savings account, which helps you adhere to minimum balance requirements and get you on the track towards consistent savings habits. Now is also a good time to start making regular contributions, no matter how small, to maximize all of your compounded interest.

Set Up Online Banking and Mobile Access

After we’ve added money to your account, set up online access, be sure to download apps (if applicable), and go through two-factor authentication for extra security.

At this point, familiarize yourself with all the features offered by your bank’s app. Stay informed about all available tools, including budgeting tools, large transaction alerts, and summaries of your spending habits. We all share the goal of helping you optimize your savings.

How to Find Legit HYSAs and Are They Safe?

With a bit of legwork, it’s easy to find a legitimate high-yield savings account that aligns with your investment goals, risk tolerance, and liquidity requirements.

Check for FDIC or NCUA Protection

For starters, ensure that it is FDIC-insured (for banks) or NCUA-insured (for credit unions). This means you have a guarantee of up to $250,000 per deposit per bank. In the event of a bankruptcy or a fallout, your deposit is returned to you within one business day, with joint amount coverage extending up to $500,000.

Keep in mind that protection is not all created equal. Sometimes, there are limits, such as principal and accrued interest, covered up to a maximum amount without considering any investment losses. By checking for protections, you will ensure that your funds remain safe while enjoying the power of compounding interest.

To confirm if your bank is FDIC or NCUA insured, visit the FDIC BankFind tool (banks.data.fdic.gov/bankfind-suite/bankfind)

Watch Out for High APYs

A second tip for finding legitimate high-interest savings accounts is to be cautious of market APYs of 7% or higher. All falls, except Raisin, which works as an aggregator and offers APYs of up to 5.25% thanks to its network, including legitimate FDIC-insured banks like Ponce Bank. Above-market APYs are typically advertised by smaller websites with no bank connections, a sure sign of a scam.

Please note that high APYs are typically offered to new customers and are not available to existing customers. Additionally, you may be required to take out additional products, such as linked checking accounts. Always check to see if you need to keep a minimum balance in a checking account. For example, Chase charges $12 monthly if you do not set up recurring direct deposits or maintain an average daily balance.

Stick to Solid Reputations

Third, we had a recommendation that you stick to talking to your banks like SoFi, Discover, Barclays, Capital One, and CIT Bank, which have offered transparent rate structures over several decades, in addition to customer service, FDIC coverage, and extra financial products that fall under different categories such as auto loans and mortgages. Feel free to read third-party reviews from reputable feedback sites, such as Trustpilot and the Better Business Bureau, for additional input.

Do not forget to focus on the bank’s infrastructure and security measures as well. We’re big fans of banks that utilize the latest fraud detection and encryption systems to keep your information safe, which complements security beyond FDIC/NCUA insurance. The greater your peace of mind, the better off you will be.

Read Customer Reviews

Additionally, reading customer reviews is essential to identifying potential issues. For example, if you see repeated feedback about withdrawals taking three to four business days, excessively fluctuating APYs, or frozen accounts, then it’s best to exercise caution. Legit HYSA will always allow you to withdraw within one to three business days (ACH), while some banks are better known for rapid transfer fees, e.g., Axos Bank.

In particular, pay attention to how your bank handles customer complaints. Banks should respond as quickly as possible to any issues, especially those involving numerical calculations, such as interest calculations.

Watch the Fine Print

There’s no shortage of strings attached to high APY offers. For example, you may be required to deposit a high minimum balance to earn the promo rate. If your balance falls below the promo rate required balance, then expect the APY to drop. Additionally, some banks may even require that you withdraw less than the standard six withdrawals per month.

Now is also an excellent time to check for any hidden fees. Sometimes hidden fees offset high APY benefits. Hidden fees could include a variety of expenses, from maintenance to excessive withdrawal penalties that reduce your net interest. One of the best things you can do is compare fee structures along two or three banks to choose the correct account for your needs.

Also, promotional rates are just that, promotions. Expect promotional rates to apply for the first few months before falling back to a lower APY later. Be sure you carefully review all terms and conditions before depositing your money. Test customer support to ensure they can answer your questions about how the account works.

Understand How Interest Is Calculated and Paid

It makes no sense to deposit into a higher-interest savings account without understanding how interest is calculated. Check for interest compounding daily, monthly, or quarterly, as daily compounding typically provides higher returns since interest accrues more frequently. Also, check to see whether you’re enjoying a promotional or fixed APY rate, as there may be a high introductory rate that falls back after 6 months. The earlier you learn how interest is calculated and paid, the higher the potential returns.

One thing to be mindful of is to check the frequency of interest postings to your account. Interest could be paid on a quarterly, monthly, or annual basis. The more frequently you’re paid, the sooner you’ll take advantage of compounding interest, resulting in better overall returns. It doesn’t make sense to withdraw from your savings account without considering its growth potential, regardless of your balance.

All in all, following all of the above steps will ensure you find a legitimate high-yield savings account in no time.

How We Picked These Accounts

When researching and compiling our list of high-yield savings accounts, we factored in several eligibility criteria, including APY/RATE stability, low fees and minimum balances, bank reputation, ease of use, and more.

Here is our thought process:

APY & Rate

Our recommendation is to remain cautious of excessive APYs and promotional rates, and instead rely on 12-month historical performance to ensure that only legitimate institutions are being offered here. For example, Raisin provides instant access to multiple partner banks, such as Liberty Savings Bank, which have historically maintained annual percentage yields above 4.8% for the past year. Additionally, with the right cuts, I barely caused a dent, using adjusted rates to prevent sudden earnings drops. In turn, Marcus by Goldman Sachs is stable with minimum volatility in the 4.4% APY range, offering increased confidence for any deposit.

Class, we pay attention to how different deposit sizes could affect your APY. Some banks only impose a high rate if your balance reaches a certain threshold, with smaller balances earning much less. The best accounts always have the most stable rates across all deposit levels.

Fees & Minimum Balances

Forget about any teaser offers here. Hidden fees can destroy your bottom line. Most of our recommendations have a $0 monthly maintenance fee, no secret service charges, and no minimum balance requirements, along with easy-to-reach thresholds. For example, Allied Banks does not charge me a monthly maintenance fee and only requires as little as $1 to start.

In turn, Discover Online Savings offers the same benefits, along with perks, including verified protection for any linked Discover account.

Brand Reputation

All of our recommendations enjoy FDIC and NCUA membership status along with high Better Business Bureau ratings and proportionately high customer service scores. For example, CIT Bank is consistently highly rated across third-party review sites and holds an A rating with the Better Business Bureau. In turn, Synchrony Bank has received a claim regarding its digital security features, including real-time account alerts that notify users of potential issues. What’s happening with their accounts

In short, we avoided promotional tactics and focused on solid foundations to ensure that we recommended only legitimate institutions.

Ease of Use

No high-yield savings account comes complete without ease of use. Whether it’s lightning-fast transfers (completed in under three business days), extra perks like cash-back opportunities, or mobile app performance, all consistently rank high.

For example, Ally Bank enjoys an average 4.6-star rating on the Apple Store and Google Play. Transfers for Marcus by Goldman Sachs are also completed within one to three business days.

Extra Benefits

In addition to fees, minimum balances, and a brand reputation for ease of use, ElitePersonalFinance also prioritizes extra benefits beyond respectable APYs, no minimum deposit requirements, and more. For example, Raisin allows access to multiple banks under one roof, eliminating the need to use various apps. In turn, Amalgamated Bank (long known for its sustainability efforts) directs millions towards environmental and social causes while allowing customers to earn competitive APYs in the process.

FAQ

Are high-yield savings accounts safe?

As long as you’re working with an FDIC-insured bank or an NCUA-insured credit union, you can expect your high-yield savings account to be protected as your guaranteed deposit up to $250 per deposit per bank. In case your bank fails, no hope is lost. Remember to always check the account status before depositing any money. You only need to worry about interest rates not keeping up.

Do these accounts have monthly fees or minimum balance requirements?

Most of our recommendations have no monthly maintenance fees and a minimum balance requirement. Users can also enjoy fee-free options at online banks. Whenever you requested a minimum balance, it was to take advantage of promotional APYs. Encouraged to read the fine print, you wouldn’t be automatically reverted to a lower rate.

How quickly can I get my money?

Expect processing of withdrawals within one to three business days, provided you’re transferring to a linked account and intend to make a move. Can your high-yield savings account deposits be transferred to a linked checking account? If so, transfers can happen almost instantaneously. But we don’t recommend using savings accounts for frequent withdrawals.

Can I open more than one high-yield savings account?

Yes, it is possible to open more than one high-yield savings account across different banks. There are several reasons for this, including taking advantage of better rates or depositing sums close to or matching the $250,000 guarantee in FDIC-insured banks or NCUA-insured credit unions.
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Should I have more than one savings account?

If you want to use your funds for various purposes, such as an emergency rainy day fund or a down payment on a new home, having more than one savings account makes sense. However, keep in mind that if you have multiple banks with multiple logins and statements, it may be a headache, so we encourage you to organize accordingly.

Are there any transaction limits?

It depends on the bank. The original Regulation D requirements allowed for a maximum of six withdrawals per month. However, it’s now at the discretion of banks and credit unions to impose their limits,

How much will $100,000 make in a high-yield savings account?

If you have $100,000 in a high-yield savings account at a 4.5% APY, then you can expect to earn $4,500 in interest after one year (assuming you’re keeping the same rate without making any withdrawals). Please note that rates are subject to change at any time, based on macroeconomic conditions, so actual earnings may be higher or lower than expected.

High-yield savings accounts vs market CDs – which is better?

If you want flexible access to your money, then HYSAs are the way. In turn, market CDs lock in rates for set terms and impose penalties if you withdraw your funds before the due date.

How often do interest rates change on these accounts?

Several factors contribute to interest rate changes, including the bank’s policy and macroeconomic conditions. Expect the rate to change as frequently as monthly. Please note that variable APYs can fluctuate significantly from one week to the next. We recommend monitoring changes to ensure the highest return is continuously achieved.

To wrap it up, HYSAs offer an alternative to traditional savings accounts, providing high interest rates in the 5% range in Florida, with FDIC or NCUA insurance to keep your deposit secure. From digital-first banks like CIT, SoFi, and Axos to established brands such as American Express, Barclays, and Capital One, there are options available for everyone, depending on your comfort level with banking.

If you want to enjoy daily or monthly compounding interest, low or no fees, and easier-to-use platforms, then it makes sense to transition to a savings account. That is, if you can withstand withdrawal restrictions, variable APYs, and a lack of in-person support in some cases, all of these downsides pale in comparison to the trade-offs you can earn by moving away from traditional banks.