Banks and credit unions that offer high yield savings accounts

You can open a high yield savings account at online banks, traditional banks with online options, and credit unions. Online banks typically offer the highest rates because they have lower overhead costs than brick-and-mortar branches. Names to look at include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360. Traditional banks like Chase, Bank of America, and Wells Fargo also offer high yield savings accounts, though their rates are usually lower than online competitors.

Credit unions are another route. Many credit unions offer high yield savings products, and you may already be a member through your employer, school, or professional association. The National Credit Union Administration (NCUA) website has a credit union locator tool. Credit union rates vary widely by institution, so you will need to check your specific credit union's current offerings.

The account you choose depends on what matters to you: the highest rate available right now, whether you want access to a physical branch, monthly fees, minimum balance requirements, and how easy the account is to open online.

Key Takeaways

  • Online banks generally offer higher rates than traditional banks because they operate without physical branches and pass savings to customers.
  • You can open most high yield savings accounts entirely online in minutes, with no minimum deposit required at many institutions.
  • Rates change frequently, so the highest-paying account today may not be the highest next month—compare current rates before opening.
  • All deposits up to $250,000 per account are protected by FDIC insurance at banks or NCUA insurance at credit unions, regardless of the rate.
  • Some accounts charge monthly fees or require minimum balances, so read the fee schedule before committing.

How to compare rates and find the current best option

High yield savings rates change constantly. The rate you see today may be different in two weeks. Before opening an account, visit the bank's website directly and look for the current Annual Percentage Yield (APY) listed on the savings account product page. Do not rely on comparison sites alone—they update slowly and sometimes show outdated rates.

Make a list of three to five banks you are considering, write down their current APY, and note any fees or minimum balance requirements. Then decide whether the rate difference is worth switching banks. If one account pays 4.50% APY and another pays 4.75%, the difference on $10,000 is about $25 per year—meaningful, but not life-changing. If you have $100,000 saved, that same difference is $250 per year, which may be worth the switch.

Check whether the rate is may provide or promotional. Some banks offer a higher rate for the first three to six months, then drop it. The account details page will say whether the rate is introductory or ongoing.

Opening an account online: what you will need

Most online banks let you open a high yield savings account in 10 to 15 minutes without visiting a branch. You will need a valid government-issued ID (driver's license or passport), your Social Security number, and proof of your current address. A recent utility bill, lease, or bank statement works for address verification.

You will also need to fund the account. Some banks require an initial deposit to open the account; others let you open it with zero dollars and deposit later. If you are transferring money from another bank, have that account's routing and account number ready. Most banks can pull funds from your existing account via ACH transfer, which takes one to three business days.

After you submit your information, the bank will verify your identity and run a soft credit check (which does not affect your credit score). Approval is usually instant or within a few hours. You can start depositing money and earning interest as soon as the account is open.

Minimum deposits and account fees

Many online banks have no minimum deposit requirement, meaning you can open an account with $0 and add money whenever you want. Others require $25, $100, or $500 to open. Check the specific bank's requirements before starting the application.

Monthly maintenance fees vary. Some banks charge nothing; others charge $5 to $10 per month if your balance falls below a certain threshold (often $500 or $1,000). A few banks waive the fee if you set up direct deposit or maintain a minimum balance. Read the fee schedule on the account details page—it is usually listed under "Fees" or "Account Terms."

Over a year, a $5 monthly fee costs $60, which can eat into the interest you earn. If a bank charges a fee and another does not, the no-fee account is usually the better choice unless the fee-charging bank's rate is significantly higher.

FDIC and NCUA insurance protection

All deposits in a high yield savings account at an FDIC-insured bank are protected up to $250,000 per depositor, per bank, per account type. This means if the bank fails, you will not lose your money. The FDIC (Federal Deposit Insurance Corporation) guarantees this protection automatically—you do not need to do anything.

If you bank at a credit union, deposits are protected by the NCUA (National Credit Union Administration) up to the same $250,000 limit. Both FDIC and NCUA insurance are backed by the federal government.

If you have more than $250,000 to save, you can open accounts at multiple banks to keep all your money insured. For example, $250,000 at Bank A and $250,000 at Bank B are both fully protected. The insurance covers the account type, not the individual bank, so opening multiple savings accounts at the same bank does not increase your coverage.

Moving money in and out of a high yield savings account

You can deposit money into a high yield savings account by ACH transfer from another bank account (one to three business days), wire transfer (same day or next day, but may have a fee), or direct deposit from your employer. Some banks also let you deposit checks by taking a photo with their mobile app.

Withdrawing money works the same way. You can transfer funds back to another bank account via ACH (one to three business days) or request a wire transfer (faster, but may cost $15 to $30). You can also visit an ATM if the bank is part of a surcharge-free ATM network, though not all online banks offer this.

Federal law used to limit savings account withdrawals to six per month, but that rule was suspended in 2020. You can now withdraw as much as you want, whenever you want. However, some banks still impose their own withdrawal limits, so check the account terms if frequent transfers matter to you.

Frequently Asked Questions

Can I open a high yield savings account if I have bad credit?

Yes. Banks do a soft credit check when you open a savings account, which does not affect your credit score and does not require a minimum credit rating. Bad credit will not stop you from opening an account. The bank is checking your banking history (whether you have unpaid overdrafts or fraud flags), not your credit score.

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

You earn interest on your average daily balance. If you have $10,000 in the account for 20 days and $5,000 for 10 days, you earn interest on roughly $8,333 for that month. Interest accrues daily and is usually deposited monthly, so you do not lose interest for withdrawing early.

Is a high yield savings account the same as a money market account?

They are similar but not identical. Both earn interest and are FDIC-insured. A money market account sometimes comes with a debit card or checkbook, while a high yield savings account typically does not. Money market accounts may have higher minimum balances. For most people, a high yield savings account is simpler and more flexible.

How do I know if a bank is FDIC-insured?

Look for the FDIC logo on the bank's website, or search the bank's name in the FDIC's Bank Find tool at fdic.gov. If the bank is not listed, it is not FDIC-insured, and your deposits may not be protected if the bank fails.

Can I open multiple high yield savings accounts at different banks?

Yes. There is no limit to how many savings accounts you can open. Some people open accounts at multiple banks to earn different rates, keep money organized by purpose, or maximize FDIC insurance coverage. Each account is separate and earns interest independently.