Banks and credit unions that offer high yield savings accounts

High yield savings accounts are offered by online banks, traditional banks with online divisions, and credit unions. Online banks typically offer the highest rates because they have lower overhead costs than branches. Banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank are common examples, though the list changes as rates shift. Traditional banks—Chase, Bank of America, Wells Fargo—also offer high yield accounts, usually through their online platforms, but their rates are often lower than online-only competitors.

Credit unions can be competitive too, especially if you are a member of a larger one. Navy Federal Credit Union, Connexus Credit Union, and Pentagon Federal Credit Union are known for strong rates on savings accounts. You must be a member to open an account, which sometimes requires living in a certain area, working for a specific employer, or joining an affinity group. Check your employer's benefits page or search the CO-OP network to find credit unions you may already be able to join.

The rate you see advertised is the Annual Percentage Yield (APY), and it changes weekly or monthly depending on the Federal Reserve's actions. The same bank may offer different rates to new customers versus existing ones. Always check the current rate on the bank's website before opening an account—a rate quoted in an article or advertisement may have changed since it was published.

Key Takeaways

  • Online banks typically offer higher APY rates than traditional banks because they have fewer physical locations and lower operating costs.
  • You can open an account online in minutes with most banks, but you will need to verify your identity with a Social Security number and proof of address.
  • Rates change frequently and vary by bank, so comparing current rates across multiple banks takes 10 to 15 minutes and can save you hundreds of dollars per year.
  • Credit unions may offer competitive rates if you are a member, but membership may be able to access depends on your employer, location, or other factors.
  • FDIC insurance protects deposits up to $250,000 per account holder per bank, so splitting money across multiple banks protects larger balances.

How to compare rates across banks

Start by visiting the websites of three to five banks directly—do not rely on rate comparison sites, which can lag behind real rates by days or weeks. Write down the APY, any minimum balance requirement, and whether the rate applies to all new customers or only those meeting certain conditions. Most online banks have no minimum balance, but some traditional banks require $25,000 or more to earn the advertised rate.

Check whether the bank charges monthly maintenance fees or requires direct deposit to earn the top rate. Some banks offer one rate for accounts with direct deposit and a lower rate for those without. A $0.25 difference in APY on a $10,000 balance means $25 per year, so small differences add up over time and across multiple accounts.

Use a simple spreadsheet or calculator to see what your balance would earn at each rate over one year. If you have $50,000 to deposit, the difference between 4.50% APY and 5.00% APY is $250 per year. That calculation makes it clear whether switching banks is worth the 15 minutes it takes to open a new account.

Opening an account online

Most banks let you open a high yield savings account entirely online without visiting a branch. You will need your Social Security number, a government-issued ID, your current address, and a way to fund the account—usually a bank transfer from another account or a debit card. The process takes 5 to 10 minutes, though identity verification can add another 10 to 20 minutes if the bank needs to confirm your information.

After you submit your application, the bank verifies your identity against databases maintained by credit bureaus and identity verification services. Most approvals happen instantly or within a few hours. Some banks ask you to confirm small deposits (usually under $1) that they send to your existing bank account within one to three business days—this is a security step to prove you control that account.

Once your account is open, you can transfer money in immediately using your bank's app or website. Transfers from another bank typically arrive within one to three business days. If you are moving money from a brick-and-mortar bank, you may be able to walk into a branch and deposit cash directly, though most online banks do not accept cash deposits.

Understanding FDIC insurance and account limits

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per account holder per bank. If you have $300,000 to save, you can protect all of it by splitting the money across two different banks—each bank covers $250,000. The insurance applies to each account type separately, so a savings account and a checking account at the same bank are each covered up to $250,000.

Credit unions are insured by the National Credit Union Administration (NCUA) under the same $250,000 limit. If you use both a bank and a credit union, you have two separate $250,000 protections. This matters if you are saving a large amount and want to maximize your protection while earning the highest rates across multiple institutions.

Insurance is automatic—you do not need to register or do anything to activate it. It protects you if the bank fails, which is rare but has happened. The FDIC has protected deposits since 1933, and no depositor has lost money on FDIC-insured accounts during that time.

Moving money between accounts and banks

Once you have opened a high yield savings account, you can transfer money in from another bank using an ACH transfer (Automated Clearing House). This is the standard method and takes one to three business days. You initiate the transfer through your new bank's app or website by entering your old bank's routing number and your account number there.

Some banks offer faster transfers. Certain online banks and credit unions participate in real-time payment networks like RTP or FedNow, which can move money in seconds or minutes. Check whether your new bank and old bank both support these services—if they do, you can move money much faster than the standard ACH timeline.

If you want to move money out of your high yield account to spend it, the same ACH transfer process works in reverse. You can also request a check or use a debit card if the bank issues one. Some high yield savings accounts do not come with debit cards because they are designed for saving, not spending, so confirm what withdrawal options are available before you open the account.

Rates and how they change

High yield savings rates are tied to the Federal Reserve's benchmark interest rate, which the Fed adjusts based on economic conditions. When the Fed raises its rate, banks typically raise savings rates within days or weeks. When the Fed cuts its rate, banks lower savings rates more slowly—sometimes weeks or months later. This means the highest rate available today may not be the highest rate available in six months.

Banks compete for deposits by offering high rates when rates are rising, but they cut rates aggressively when rates are falling because they have less incentive to attract new money. If you lock in a high rate now, that rate is not locked—it can change at any time. Most banks change rates without notice, though they are required to tell you before the change takes effect.

Because rates change frequently, the best strategy is to open an account at whichever bank offers the highest rate at the moment you are ready to deposit money. If rates drop later, you can move your money to a different bank offering a better rate. There is no penalty for closing a savings account and moving your balance elsewhere.

Frequently Asked Questions

Can I have high yield savings accounts at multiple banks at the same time?

Yes. Many people maintain accounts at two or three banks to maximize FDIC insurance coverage and take advantage of different rates. You can move money between them whenever you want. There is no limit on how many savings accounts you can open, though banks may decline you if you have a history of fraud or excessive account openings in a short time.

What happens if a bank fails after I deposit money?

The FDIC takes over the bank and pays you up to $250,000 from the insurance fund. This process typically takes a few days to a week. You will have access to your money, and you will not lose any of it as long as your balance was under $250,000. Bank failures are extremely rare in the modern era.

Do I need a minimum balance to earn the advertised rate?

Most online banks have no minimum balance requirement. Some traditional banks require $25,000 or more to earn their highest rate, and they pay a much lower rate on smaller balances. Always check the bank's website for minimum balance rules before opening an account, because this can significantly affect how much you earn.

How long does it take to transfer money out if I need it?

A standard ACH transfer takes one to three business days. If both your banks support real-time payment networks, the transfer can happen in seconds or minutes. You can also request a check or use a debit card if the bank issues one, though checks take several days to clear.

Will opening multiple accounts hurt my credit score?

No. Opening a savings account does not trigger a hard credit inquiry, so it does not affect your credit score. Banks may do a soft inquiry to check for fraud, but this does not show up on your credit report and does not impact your score.