Which banks offer high-yield savings accounts right now

High-yield savings accounts are offered by online banks, credit unions, and a few traditional banks with online divisions. The banks that pay the highest rates change month to month as rates shift, so there is no permanent list—but the pattern is consistent: online-only banks and credit unions almost always pay more than brick-and-mortar banks because they have lower overhead costs.

As of now, online banks like Marcus, Ally, American Express Personal Savings, Discover Bank, and LendingClub typically offer rates in the 4% to 5% range, though the exact rate depends on the bank and changes frequently. Credit unions often match or beat these rates through their own high-yield savings products. Traditional banks with physical branches—Chase, Bank of America, Wells Fargo—usually offer rates below 1% on regular savings accounts, though some have launched online divisions with higher rates.

The rate you see advertised is the Annual Percentage Yield (APY), which includes compounding. When you compare banks, compare the APY, not the base interest rate. The APY is what you actually earn.

Key Takeaways

  • Online banks and credit unions pay significantly higher rates than traditional banks because they do not maintain physical branches.
  • The highest-paying accounts change month to month as interest rates move, so the best rate today may not be the best rate next month.
  • You should compare the APY (Annual Percentage Yield), not the base interest rate, because APY includes the effect of compounding.
  • Most high-yield savings accounts at online banks have no monthly fees, no minimum balance requirements, and FDIC insurance up to $250,000.
  • Credit unions sometimes offer rates as high as online banks and may offer additional perks like lower loan rates or fee waivers.

Online banks versus traditional banks with online divisions

Online-only banks have no physical locations, which means they spend almost nothing on real estate, staff, or branch operations. They pass that savings to depositors in the form of higher interest rates. Marcus, Ally, American Express Personal Savings, and Discover Bank are examples of online banks that operate this way. They are FDIC-insured just like traditional banks, so your money is protected up to $250,000.

Some traditional banks have created online divisions to compete. Chase has Chase Bank Online, Bank of America has BankAmericard Online Savings, and Wells Fargo has Wells Fargo Online Savings. These accounts typically pay higher rates than the same bank's in-branch savings account, but still lower than pure online banks, because the parent company still maintains branch infrastructure.

The trade-off is access: online banks have no tellers or branch locations. You manage your account through a website or mobile app, and you move money electronically. If you need to deposit cash or speak to someone in person, an online bank is not the right choice. If you are comfortable with digital banking, online banks almost always offer better rates.

Credit unions and their high-yield savings options

Credit unions are member-owned financial cooperatives, not corporations. They often offer savings rates that match or exceed online banks because they return profits to members rather than shareholders. Many credit unions have high-yield savings accounts or money market accounts that pay competitive rates.

To join a credit union, you must meet membership criteria—usually based on where you work, where you live, or an organization you belong to. Some credit unions have very broad membership (for example, some accept anyone in a certain state), while others are restricted to employees of a specific company or members of a specific group. You can search for credit unions you are may be able to access to join through the CO-OP Network or by visiting the Credit Union National Association website.

Credit unions are also FDIC-insured (technically they use NCUA insurance, which works the same way), so your deposits are protected. One advantage of credit unions is that membership sometimes comes with other benefits—lower loan rates, fee waivers, or access to a shared branch network where you can deposit cash at other credit unions' locations.

How to find the current highest rate

Interest rates move frequently, so the highest-paying bank this month may not be the highest next month. To find current rates, visit the websites of online banks directly and note their advertised APY. Bankrate, DepositAccounts, and Money Market Account Rates all track high-yield savings rates across multiple banks and update them regularly.

When you compare, look at the APY, not the promotional rate. Some banks offer a higher rate for the first few months, then drop it. Read the fine print to see whether the rate is permanent or promotional. Also check whether there are any conditions—some banks require a minimum deposit or a monthly transfer to earn the advertised rate.

Once you have narrowed your choices, verify that the bank is FDIC-insured by checking the FDIC's Bank Find tool. Enter the bank name and confirm it appears in the database. This takes 30 seconds and protects you from depositing money at an uninsured institution.

What to look for beyond the interest rate

The APY matters most, but other features affect whether an account is right for you. Check whether the bank charges monthly maintenance fees—most online banks do not, but some traditional banks do. Look at whether there is a minimum balance requirement to open the account or to earn the advertised rate. Some banks require $1,000 or $10,000 to open; others have no minimum.

Check the bank's transfer policies. Most online banks allow unlimited transfers in and out, but some limit the number of transfers per month. If you plan to move money frequently, this matters. Also verify that the bank offers a mobile app and online banking platform that works for you—some people prefer certain interfaces over others.

Finally, consider whether you need customer service. Online banks typically offer support through email, chat, or phone, but not in person. If you think you will need to speak to someone regularly, a credit union or a traditional bank with branches might be a better fit, even if the rate is slightly lower.

Moving money into a high-yield savings account

Once you have chosen a bank, opening an account is straightforward. You provide your name, address, Social Security number, and initial deposit information. Most banks let you fund the account by linking your existing checking account and transferring money electronically. This usually takes one to three business days.

Some banks also accept direct deposit, which means your employer can send your paycheck directly to the high-yield savings account. This is useful if you want to automate savings—you can have a portion of each paycheck go to savings without having to transfer it yourself.

After the account is open and funded, your interest accrues daily and is usually deposited monthly. You can leave the money untouched to earn interest, or you can withdraw it anytime without penalty. High-yield savings accounts have no withdrawal limits (unlike money market accounts at some banks, which may restrict withdrawals).

FDIC insurance and account safety

All banks mentioned here are FDIC-insured, which means deposits up to $250,000 per depositor, per bank, per account type are protected if the bank fails. This protection is automatic—you do not have to do anything to activate it. If you have more than $250,000, you can open accounts at multiple banks to keep all your money insured.

High-yield savings accounts are also very safe from fraud because they are not linked to a debit card. You move money electronically through transfers or ACH, which have fraud protections built in. If someone gains access to your account, they cannot simply swipe a card—they have to initiate a transfer, which leaves a record and can often be reversed.

Frequently Asked Questions

Can I move money out of a high-yield savings account whenever I want?

Yes. High-yield savings accounts have no withdrawal limits or penalties. You can move money out anytime through electronic transfer, ACH, or by linking the account to your checking account and transferring funds. The transfer usually takes one to three business days to complete.

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

High-yield savings rates are not fixed—they move up and down with the Federal Reserve's benchmark rate. When the Fed raises rates, banks typically raise their savings rates within days or weeks. When the Fed cuts rates, banks cut savings rates. Your rate can change at any time, and banks are required to notify you before the change takes effect.

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

If the bank is FDIC-insured, yes. Check the FDIC's Bank Find tool to confirm the bank is insured. Your deposits are protected up to $250,000 regardless of whether the bank is well-known. Online banks are regulated the same way as traditional banks.

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

It depends on the bank. Most online banks have no minimum balance requirement and pay the advertised rate on any balance. Some traditional banks require $1,000 or more. Check the bank's terms before you open the account.

Can I have a high-yield savings account and a checking account at the same bank?

Yes. Most online banks and credit unions offer both. You can link them so money transfers between them easily. Some people keep their checking account at a traditional bank and their high-yield savings at an online bank—there is no rule against splitting your accounts across multiple institutions.