Banks and credit unions that offer high yield savings accounts

High yield savings accounts live at online banks, traditional banks with online divisions, and credit unions. The highest rates right now are at online-only banks because they have lower overhead than branches—no tellers, no rent, no physical locations. Banks like Marcus, Ally, American Express Personal Savings, and Discover have no monthly fees and no minimum balance requirements on their high yield accounts.

Traditional banks—Chase, Bank of America, Wells Fargo, Citibank—offer high yield savings too, but their rates are usually lower than online competitors. You pay for the convenience of walking into a branch. Credit unions often match or beat online bank rates, especially if you're a member already. Check your own credit union first; some have no fees and competitive APY.

The rate you see advertised changes weekly or even daily. When you open an account, you lock in the rate that's current that day. If rates drop later, your rate drops with it. If rates rise, your rate stays where it was unless the bank raises it—which they sometimes do to stay competitive.

Key Takeaways

  • Online banks typically offer the highest rates because they have no branch costs, and rates change weekly based on what the Federal Reserve does.
  • You can compare current rates across banks on sites like Bankrate, DepositAccounts, or NerdWallet, which update daily and let you sort by APY.
  • Opening an account takes 10 to 15 minutes online and requires a Social Security number, proof of address, and a way to fund the account (bank transfer or check deposit).
  • Your deposits are insured up to $250,000 per bank by the FDIC, so moving money between banks does not put your savings at risk.
  • Some banks offer promotional rates for new customers—higher APY for the first three or six months—so compare both the intro rate and the regular rate before deciding.

How to compare rates across banks

Bankrate, DepositAccounts, and NerdWallet all list high yield savings accounts side by side with their current APY. These sites update daily and let you filter by minimum balance, fees, and whether the bank requires direct deposit. You can see the rate each bank is offering right now without having to visit each bank's website.

When you compare, look at two numbers: the APY the bank is advertising and any promotional rate for new accounts. Some banks offer 4.50% APY for the first 90 days, then drop to 4.25%. Others offer the same rate to everyone. The promotional rate matters if you're moving money around frequently, but if you're parking money for a year or longer, the regular rate is what counts.

Check whether the bank charges a monthly fee, requires a minimum balance to earn the advertised rate, or requires direct deposit. Most online banks charge nothing and have no minimums, but some traditional banks do. A $0.50 monthly fee on a $10,000 balance costs you 6% of your annual interest—worth avoiding.

What you need to open an account

You need a Social Security number, a government-issued ID, proof of your current address (a utility bill, lease, or bank statement dated within the last 60 days), and a way to fund the account. Most banks let you link an existing bank account and transfer money electronically, or you can mail a check. The whole process takes 10 to 15 minutes online.

Some banks ask for your employment information or annual income, but this is optional on most applications. They're not verifying it; they're using it to flag accounts for anti-money-laundering purposes. If you leave it blank, the application usually still goes through.

After you submit your application, the bank verifies your identity—usually instantly—and your account opens the same day. You can start moving money in immediately. Some banks require two small test deposits to verify your linked bank account before you can transfer larger amounts, which adds a day or two.

FDIC insurance and how much you can safely deposit

The FDIC insures deposits up to $250,000 per depositor per bank. If you have $250,000 at Marcus and $250,000 at Ally, both are fully protected. If you have $500,000 at one bank, only $250,000 is covered. The insurance is automatic—you don't sign up for it or pay for it.

The $250,000 limit applies per bank, not per account. If you have a savings account and a money market account at the same bank, they count as one deposit for insurance purposes. If you want to protect more than $250,000, open accounts at different banks.

Credit unions have a separate insurance program called the NCUA that also covers up to $250,000 per member per credit union. If you're a member of two different credit unions, you get $250,000 protection at each one.

Promotional rates and how long they last

Banks use promotional rates to attract new customers. A bank might offer 4.75% APY for the first 90 days, then drop to 4.25% after that. The promotional period is usually 3, 6, or 12 months. After it ends, you earn the regular rate unless the bank raises rates across the board.

Promotional rates are real money—on a $10,000 deposit, the difference between 4.75% and 4.25% is $50 over a year. But they're temporary. If you're planning to keep money in savings for years, the regular rate matters more than the intro offer. Read the fine print to see when the promotional rate ends and what the regular rate will be.

Some banks require you to keep a minimum balance or set up direct deposit to may have access to for the promotional rate. If you can't meet the requirement, you may not get the higher rate. Check the terms before you open the account.

Moving money between banks without losing interest

You can move money between high yield savings accounts at different banks without penalty. The transfer takes 1 to 3 business days via ACH (automated clearing house), and your money earns interest the whole time. When you move money out of one bank, it stops earning that bank's rate. When it lands in the new bank, it starts earning the new rate immediately.

If you're chasing promotional rates—opening a new account every few months to lock in a higher rate—you can do that, but it requires discipline. Each new account takes 10 to 15 minutes to open, and you need to move money in and out on schedule. Some people do this; most don't. The difference between 4.75% and 4.25% is not worth the hassle unless you have a large balance.

Banks don't penalize you for moving money out. There's no early withdrawal fee, no closing fee, and no waiting period. You can withdraw all your money the day after you deposit it if you want to.

Red flags and what to avoid

Avoid banks that charge monthly maintenance fees, require high minimum balances ($5,000 or more), or require direct deposit to earn the advertised rate. These are ways banks keep rates low while appearing competitive. An online bank with no fees and no minimums will almost always beat a traditional bank with fees, even if the advertised rate looks similar.

Be skeptical of rates that seem too high compared to competitors. If one bank is offering 5.50% and everyone else is at 4.25%, check whether there's a catch—a promotional period that ends in 30 days, a requirement to maintain a huge balance, or a requirement to open a checking account too. The rate should match what other banks are offering within 0.25%.

Make sure the bank is FDIC-insured or NCUA-insured. You can verify this on the FDIC website (fdic.gov) or NCUA website (ncua.gov) by searching the bank's name. If it's not listed, your deposits are not protected.

Frequently Asked Questions

Can I move money between high yield savings accounts without losing interest?

Yes. Transfers between banks take 1 to 3 business days, and your money earns interest from the old bank until it leaves and from the new bank as soon as it arrives. There are no penalties for moving money out of a high yield savings account.

What's the difference between a high yield savings account and a money market account?

Both earn interest, but money market accounts sometimes come with a debit card or checkbook, which makes them easier to access. High yield savings accounts are simpler—you transfer money in and out, but you can't write checks. The APY is usually the same. Choose based on whether you need to write checks or make frequent withdrawals.

Do I have to keep a minimum balance to earn the advertised rate?

Most online banks don't require a minimum balance. Some traditional banks require $500 or $1,000 to earn the full rate. Check the bank's terms before you open an account. If you have less than the minimum, you may earn a lower rate or no interest at all.

What happens to my rate if the Federal Reserve changes interest rates?

Banks adjust their rates based on what the Federal Reserve does, but not automatically or immediately. When the Fed raises rates, banks usually raise their high yield savings rates within a week or two to stay competitive. When the Fed cuts rates, banks cut their rates too, sometimes faster than they raised them.

Can I open multiple high yield savings accounts at the same bank?

Yes, but they count as one deposit for FDIC insurance purposes. If you have $200,000 in one account and $100,000 in another at the same bank, only $250,000 total is insured. To protect more than $250,000, open accounts at different banks.