Where to find a high yield savings account right now

High yield savings accounts exist at online banks, some traditional banks with online divisions, and credit unions. The banks paying the highest rates today are mostly online-only: Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Capital One 360 all offer rates between 4.00% and 5.35% APY as of early 2024. Traditional banks like Chase, Bank of America, and Wells Fargo offer savings accounts, but their rates are typically under 0.50% APY—sometimes much lower. Credit unions vary widely; some offer rates competitive with online banks, while others match traditional banks.

The rate you see advertised is the one you get when you open the account. Rates change frequently—sometimes weekly—so the highest-paying bank this month may not be the highest next month. You can check current rates on comparison sites like Bankrate, DepositAccounts, or the banks' own websites. The difference between a 5.30% account and a 4.00% account is real money: on $10,000, that's roughly $130 per year.

Key Takeaways

  • Online banks consistently offer rates 10 to 20 times higher than traditional brick-and-mortar banks, though they have no physical branches.
  • Your money is insured up to $250,000 per account at FDIC-insured banks and up to $250,000 per account at NCUA-insured credit unions, regardless of the rate.
  • Rates change frequently and vary by bank, so comparing current offers before opening an account can add hundreds of dollars per year to your earnings.
  • Some high yield accounts require a minimum deposit to open; others do not, but a few charge monthly fees if your balance falls below a threshold.

Online banks versus traditional banks

Online banks pay higher rates because they have lower overhead: no branch staff, no building leases, no ATM networks to maintain. They pass those savings to depositors in the form of higher APY. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by phone camera, transfer money from another bank account, or set up direct deposit from your employer.

Traditional banks with physical locations—Chase, Bank of America, Wells Fargo, Citibank—keep rates low because they use deposits to fund mortgages, auto loans, and business lending at higher rates. The spread between what they pay you and what they charge borrowers is how they make money. A high yield savings account does not fit their business model, so they do not offer one.

Some traditional banks have created online divisions to compete: Chase has Chase Savings (still under 0.50% APY), and Bank of America has Online Savings (similarly low). These accounts offer slightly better rates than the in-branch version but nowhere near what a dedicated online bank pays.

Credit unions and their rates

Credit unions are member-owned cooperatives, not profit-driven corporations. Some credit unions offer high yield savings accounts at rates matching or beating online banks. Pentagon Federal Credit Union (PenFed) and Connexus Credit Union are known for competitive rates. However, credit unions vary enormously: some offer 4.50% APY, while others offer 0.25%. You have to check your specific credit union's current rate.

Credit union membership often requires you to live or work in a certain area, belong to a specific employer or organization, or meet other criteria. Some credit unions have opened membership to anyone in the United States, but most still have restrictions. If you are already a member of a credit union, ask whether they offer a high yield savings product. If not, you may be able to join a different credit union that does.

Credit union deposits are insured by the National Credit Union Administration (NCUA), not the FDIC. The coverage limit is the same: $250,000 per account per institution. If you hold accounts at multiple credit unions, each is insured separately.

Fees and minimum deposit requirements

Most high yield savings accounts have no monthly maintenance fee and no minimum deposit to open. Marcus, Ally, and Discover all allow you to open with $0. Some accounts do charge a fee if your balance falls below a certain amount—typically $2.50 to $10 per month—but this is less common among the highest-paying banks.

A few banks require a minimum deposit to earn the advertised rate. For example, some accounts pay 5.30% on balances of $25,000 or more but a lower rate on smaller balances. Read the terms before opening to know what rate applies to your deposit size.

Overdraft fees do not apply to savings accounts because you cannot overdraft a savings account—the bank simply declines the transaction if you do not have enough money. However, some banks charge a fee if you exceed a certain number of withdrawals per month (though federal rules no longer limit this, some banks still impose their own limits).

How to move money between banks

Opening a high yield account at a new bank does not mean closing your existing account. You can hold savings at multiple banks. To move money from your current bank to a new high yield account, you have three options: ACH transfer (the most common), wire transfer (faster but sometimes costs money), or check deposit (slowest).

An ACH transfer is free and takes 3 to 5 business days. You provide the new bank with your old bank's routing number and your account number, and the new bank pulls the money over. Most online banks let you initiate this from their website in minutes. The old bank does not need to approve it—the transfer happens automatically.

A wire transfer moves money the same day or next business day but typically costs $15 to $30 at the sending bank. Use this only if you need the money urgently. A check deposit is free but takes 5 to 10 business days to clear, depending on the bank's policy.

FDIC and NCUA insurance protection

Every bank mentioned here is FDIC-insured or NCUA-insured, meaning your deposits are protected up to $250,000 per account per institution if the bank fails. This protection is automatic—you do not need to do anything. The insurance covers the principal and accrued interest.

If you have more than $250,000 to save, you can split it across multiple banks to keep all of it insured. For example, $250,000 at Marcus and $250,000 at Ally are both fully protected. You can also open multiple accounts at the same bank—a savings account and a money market account, for instance—and each is insured separately up to $250,000.

Insurance does not cover investment products like stocks or bonds, only deposit accounts. A high yield savings account is a deposit account, so it is covered.

Comparing rates and switching banks

Rates change frequently, sometimes multiple times per week. A bank that pays 5.30% today might pay 4.80% in three months. You are not locked in—you can move your money to a higher-paying bank whenever you want, and the transfer is free and takes a few days.

To find the current highest rate, visit Bankrate.com or DepositAccounts.com and filter by high yield savings accounts. Both sites update rates daily and show you which banks are paying the most. Read the fine print: some rates apply only to new customers, some require a minimum balance, and some have promotional periods that expire.

If you are earning 4.00% and another bank is offering 5.00%, moving your money is worth the effort. On $50,000, that difference is $500 per year. The transfer takes 3 to 5 days and costs nothing.

Frequently Asked Questions

Can I access my money quickly if I need it?

Yes. High yield savings accounts have no withdrawal restrictions. You can transfer money to another bank account in 3 to 5 business days, or write a check if the bank provides checkbooks. Some online banks also offer debit cards linked to the savings account for faster access, though this is less common.

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 savings rates within days or weeks. When the Fed cuts rates, banks cut savings rates more slowly. Your rate can go up or down at any time, and the bank will notify you before the change takes effect.

Do I need good credit to open a high yield savings account?

No. High yield savings accounts do not require a credit check. Banks may check ChexSystems, a banking history database, to see if you have had problems with previous accounts, but this is not a credit check. Even if you have poor credit, you can open a high yield savings account.

Can I use a high yield savings account as an emergency fund?

Yes. High yield savings accounts are designed for this purpose. Your money is safe, insured, and accessible within a few days. The rate is higher than a regular savings account, so your emergency fund grows slightly while you wait to use it. The only drawback is that you cannot access the money instantly—transfers take 3 to 5 business days.

What if a bank goes out of business?

The FDIC or NCUA takes over the account and transfers it to another bank, or pays you directly up to $250,000. This process usually takes a few weeks. Your money is protected; you will not lose it. Bank failures are rare, and no depositor has lost FDIC-insured funds since the insurance program began in 1933.