Banks and credit unions that offer HYSAs

High-yield savings accounts live at online banks, traditional banks with online divisions, and credit unions. The accounts that pay the highest rates are almost always at online-only banks—companies like Marcus, Ally, American Express Personal Savings, and Discover Bank—because they have lower overhead than brick-and-mortar branches. You can open one entirely online in minutes, usually with just an email address and Social Security number.

Traditional banks (Chase, Bank of America, Wells Fargo, Citibank) also offer savings accounts that earn interest, but their rates are typically much lower than online banks. Credit unions often sit in the middle: rates vary widely by institution, but some credit unions—particularly larger ones and those that market to savers—offer competitive rates. You can search credit unions in your area through the CO-OP Network or Alliant Credit Union's locator.

The rate you receive depends on the bank's current offer and your account balance. Rates change frequently, sometimes weekly. Before opening, check the current APY on the bank's website and compare it to other options. The difference between a 4.5% APY and a 5.35% APY matters significantly over time, especially on larger balances.

Key Takeaways

  • Online-only banks typically offer the highest rates because they have no physical branches to maintain.
  • You can open an HYSA online in minutes with an email, Social Security number, and initial deposit (often $0 to $25).
  • Rates change frequently and vary by bank, so compare current APYs before opening an account.
  • Traditional banks and credit unions offer HYSAs too, but rates are usually lower than online banks.
  • FDIC insurance covers up to $250,000 per depositor per bank, so balances above that should be split across institutions.

What you need to open an account

Most online banks require the same basic information: your name, date of birth, Social Security number, address, and email. You will also need a way to fund the account—either a debit card, a bank account to transfer from, or sometimes a check. Many banks let you start with $0 and add money later, though some have a minimum opening deposit of $25 or $100.

The process takes 5 to 15 minutes. You answer questions on the bank's website or app, verify your identity (usually instant), and choose a username and password. Some banks ask you to verify your identity a second time by confirming a small deposit or answering security questions about your credit history. Once approved, you can transfer money in and start earning interest immediately—though the rate you lock in is the rate the bank is offering on the day you open, not the day you deposit.

If you already have a checking account at another bank, linking it to your new HYSA is straightforward. Most banks let you transfer money between linked accounts within one to three business days. Some online banks (Ally, Marcus) also offer free incoming wire transfers, which can speed up deposits from employers or other sources.

Comparing rates and features across banks

The primary reason to choose one HYSA over another is the APY, but a few secondary features matter depending on how you plan to use the account. Some banks offer slightly lower rates but include perks like no monthly fees, no minimum balance requirements, or the ability to earn bonus interest if you make regular deposits. Others charge a small monthly fee if your balance drops below a threshold—usually $500 to $2,500—so read the fee schedule before opening.

Check whether the bank allows unlimited transfers out of the account. Federal rules no longer cap withdrawals from savings accounts, but some banks still limit how many times per month you can move money out without a fee. If you plan to use the HYSA as a true emergency fund and withdraw frequently, this matters. Marcus and Ally, for example, allow unlimited transfers.

Look at the bank's customer service options too. Some online banks offer phone support 24/7; others have limited hours or only chat and email. If you prefer talking to a person, check the bank's website for support hours before opening. Also verify that the bank is FDIC-insured (nearly all are, but it is worth confirming on their website).

How FDIC insurance protects your money

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks up to $250,000 per depositor per institution. This means if you have $50,000 in a Marcus HYSA and Marcus fails, the FDIC will return your $50,000. If you have $300,000 and want full coverage, you would need to split it: $250,000 at one bank and $50,000 at another.

The $250,000 limit applies per bank, not per account type. So if you have a checking account and an HYSA at the same bank, they share the $250,000 coverage. If you want to keep more than $250,000 in HYSAs and have it all insured, open accounts at different banks. For example: $250,000 at Marcus, $250,000 at Ally, and $50,000 at American Express Personal Savings would all be fully covered.

Credit union deposits are insured by the National Credit Union Administration (NCUA), which also covers up to $250,000 per member per institution. The same rule applies: if you have accounts at two different credit unions, each is insured separately up to $250,000.

Moving money in and out of an HYSA

Deposits into an HYSA are fast. If you link a checking account at another bank, transfers usually clear in one to three business days. Some banks offer faster options: Ally and Marcus accept incoming wire transfers at no charge, which can arrive the same day. You can also deposit by check at some banks (mail it in or use mobile deposit if available), though checks take longer to clear.

Withdrawals work the same way in reverse. You can transfer money back to a linked checking account in one to three business days, or request a wire transfer if the bank offers it. There is no penalty for withdrawing money—HYSAs are not like CDs or money market accounts that charge you for early withdrawal. You can move money out whenever you need it without losing interest or paying a fee.

Keep in mind that interest accrues daily but is usually deposited monthly. If you withdraw money mid-month, you will still earn interest on the balance you held up to that point. The exact timing depends on the bank, so check their terms if the timing matters for your planning.

Online banks versus brick-and-mortar banks

Online banks pay higher rates because they do not maintain physical branches, which is expensive. They pass the savings to depositors in the form of higher APY. The tradeoff is that you cannot walk into a branch to deposit cash or speak to someone in person. If you rarely use cash and are comfortable managing your account online, an online bank HYSA is almost always the better choice financially.

Brick-and-mortar banks offer the convenience of physical locations and in-person service, but their HYSA rates are typically 1% to 2% lower than online banks. For example, if an online bank is paying 5.35% APY, a traditional bank might pay 3.5% or 4%. On a $10,000 balance, that difference is roughly $185 per year in lost interest. Over five years, it compounds to significantly more.

Some people keep a small HYSA at their primary bank for convenience and a larger HYSA at an online bank for the rate. This approach works if you are comfortable managing multiple accounts, but it adds complexity. Most savers are better off choosing one bank based on rate and sticking with it.

Frequently Asked Questions

Can I open an HYSA if I do not have a Social Security number?

Most banks require a Social Security number or Individual Taxpayer Identification Number (ITIN) to open an account. If you do not have either, some credit unions and smaller regional banks may work with you using a passport or other government ID. Call ahead to ask before visiting or applying online.

What happens to my interest if I withdraw money before the month ends?

Interest accrues daily, so you earn interest on the balance you held each day. If you withdraw mid-month, you keep the interest you have already earned; you just do not earn interest on the money you withdrew for the rest of the month. You do not lose interest or pay a penalty.

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

As long as the bank is FDIC-insured, your money is protected up to $250,000 even if the bank fails. Check the FDIC website to confirm the bank is a member. Online banks are regulated the same way as traditional banks; the main difference is they have no physical branches.

Can I have multiple HYSAs at different banks?

Yes. Many people keep HYSAs at two or three banks to maximize FDIC coverage, earn different rates, or organize money by purpose (emergency fund at one bank, vacation savings at another). Each account is separate, and you can transfer between them as needed.

Do I have to keep a minimum balance in an HYSA?

Most online banks have no minimum balance requirement. Some traditional banks and credit unions require $500 to $2,500 to avoid a monthly fee. Check the bank's fee schedule before opening. Even if there is no minimum, keeping money in the account means it earns interest, so there is no reason to withdraw it unless you need it.