Joshua Hunter
The best high-yield savings account rate is 5.00% APY, available from Varo Bank — more than 13 times the FDIC's national average for savings accounts of 0.38% APY. A high-yield savings account pays more interest while still letting you withdraw your money when needed. All rates were verified and available to open as of June 12, 2026.
Key Takeaways
- The top high-yield savings account rate is 5.00% APY from Varo Bank, more than 13 times the FDIC national average of 0.38% APY.
- Investopedia tracks rates from over 100 nationally available banks and credit unions every business day.
- The Federal Reserve left its key rate unchanged at 3.50%–3.75% at its April 29 meeting, and savings rates closely follow the federal funds rate.
- High-yield savings accounts are safe, FDIC- or NCUA-insured up to $250,000 per depositor, and easy to link to your existing checking account.
- Big-name banks like Chase, Bank of America, and Wells Fargo pay close to zero interest, at just 0.01% APY.
Best High-Yield Savings Account Rates for June 2026
The top savings account rates in the country are listed below in order of APY. Where more than one financial institution has the same rate, we rank them in order of the lowest monthly deposit requirement, the lowest minimum balance requirement, and the lowest opening deposit requirement. If still tied, we list the institutions alphabetically.
- Varo Bank – 5.00% APY
- Pibank – 4.40% APY
- Fitness Bank – 4.30% APY
- OMB Bank – 4.26% APY
- Abound Credit Union – 4.25% APY
- Axos Bank – 4.21% APY
- Bask Bank – 4.10% APY
- CIT Bank – 4.10% APY
- Climate First Bank – 4.01% APY
- Vio Bank – 4.01% APY
- Peak Bank – 4.01% APY
- TotalBank – 4.01% APY
- Vibrant Credit Union – 4.00% APY
- CineFi – 4.00% APY
- E*TRADE from Morgan Stanley – 4.00% APY
- LendingClub – 4.00% APY
- Bread Savings – 4.00% APY
- First National Bank of America – 4.00% APY
- Valley Direct – 4.00% APY
- Poppy Bank – 4.00% APY
- Badass Bank – 4.00% APY
- OnPath Credit Union – 4.00% APY
Compare the Best High-Yield Savings Accounts
| Institution | APY | Opening Deposit | Minimum Balance | Requirements/Limits |
|---|---|---|---|---|
| Varo Bank | 5.00% | Any amount | Any amount | Direct deposits, checking account, APY paid on balances up to $5,000 |
| Pibank | 4.40% | Any amount | Any amount | Mobile banking only; deposits limited to wire transfers or Plaid: no incoming or outgoing ACH transfers, no check deposits, no direct deposits |
| Fitness Bank | 4.30% | $100 | $100 | Checking account with $5,000 average daily balance, daily step count |
| OMB Bank | 4.26% | $5,000 | Any amount | Electronic statements |
| Abound Credit Union | 4.25% | Any amount | Any amount | Credit union membership; APY paid on balances up to $5,000 |
| Axos Bank | 4.21% | Any amount | $1,500 | Direct deposits |
| Bask Bank | 4.10% | Any amount | Any amount | Base APY of 3.75% plus 0.10% boost for new customers and 0.25% boost for qualifying automated deposits |
| CIT Bank | 4.10% | $100 | $5,000 | Base APY of 3.75%, plus an additional 0.35% for the first 6 months on balances of at least $5,000 when opening with the promo code CITBOOST |
| Climate First Bank | 4.01% | $50 | Any amount | None |
| Vio Bank | 4.01% | $100 | Any amount | None |
| Peak Bank | 4.01% | $100 | Any amount | New accounts only |
| TotalBank | 4.01% | $25,000 | $2,500 | None |
| Vibrant Credit Union | 4.00% | Any amount | Any amount | None |
| CineFi | 4.00% | Any amount | Any amount | Credit union membership |
| E*TRADE from Morgan Stanley | 4.00% | Any amount | Any amount | Base rate of 3.35% APY with a 0.65% APY boost for new accounts opened by Sept. 30, 2026 |
| LendingClub | 4.00% | Any amount | Any amount | $250 in monthly deposits, otherwise 3.00% APY |
| Bread Savings | 4.00% | $100 | Any amount | None |
| First National Bank of America | 4.00% | $1,000 | Any amount | New money; $1,000 balance required to avoid $10 monthly fee |
| Valley Direct | 4.00% | $1,000 | Any amount | New customers only |
| Poppy Bank | 4.00% | Any amount | $1,000 | None |
| Badass Bank | 4.00% | $1,000 | $1,000 | None |
| OnPath Credit Union | 4.00% | $25,000 | $25,000 | New money; only three fee-free withdrawals each month; credit union membership |
Note that some banks call their savings accounts "money market" accounts. Money market accounts traditionally offer the ability to write checks, while savings accounts do not. None of the accounts listed here offer check-writing privileges, even if the name might suggest otherwise.
Account Details for the Top High-Yield Savings Accounts
Varo Bank, High-Yield Savings – 5.00% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: 1) $1,000 monthly in qualifying direct deposits; 2) Open and maintain an accompanying Varo Bank Account; 3) End the month with positive balances in all Varo accounts; 4) Stated APY paid on balances up to $5,000; APY is 2.50% for balances greater than $5,000 and if qualifications are not met. Monthly fee: No. ATM card: Yes. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: No. Varo Bank is a fintech company, started in 2015 and FDIC-insured since 2020.
Pibank – 4.40% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: 1) Mobile app only, no desktop banking; 2) Deposits limited to wire transfers or Plaid; 3) No incoming or outgoing Automated Clearing House (ACH) transfers; 4) No direct deposits. Monthly fee: None. ATM card available: No. Mobile check deposit: No. Checking accounts available: No. CDs available: No. Pibank is an app-only savings product operated by Intercredit Bank, established in Miami in 1992. Intercredit originally established Pibank in Spain in 2018, then launched it in the U.S. in 2024.
Fitness Bank, Ultra Savings – 4.30% APY
Required opening deposit: $100. Minimum balance requirement: $100 to earn stated APY. Other requirements/limits: 1) Open an Elite Checking account and maintain an average daily balance of $5,000; 2) Average daily step count of 10,000, tracked through Fitness Bank's app. Monthly fee: None with $100 ongoing balance. ATM card available: No. Mobile check deposit: No. Checking accounts available: No. CDs available: No. Fitness Bank is a division of Affinity Bank, which dates back to 1928 and is headquartered in Covington, Georgia.
OMB Bank, Online High-Interest Savings – 4.26% APY
Required opening deposit: $5,000. Minimum balance requirement: Any amount. Other requirements/limits: Electronic statements. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Formerly Old Missouri Bank, OMB changed its name in 2023. It has multiple branches in Missouri and Kansas and is also available nationwide through online and mobile banking.
Abound Credit Union, High-Yield Savings Account – 4.25% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: 1) APY paid on balances up to $5,000; 2) Credit union membership, which includes keeping at least $5 in a standard savings account, a one-time credit union fee of $10, and a one-time $10 donation to either USA Cares Association or ECTC Military Education Association. Monthly fee: None with 12 or fewer monthly transfers; otherwise a $1 fee for each transfer beyond 12. ATM card available: Debit card available with checking accounts. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Abound was originally founded in 1950 as Fort Knox Civilian Employees Federal Credit Union.
Axos Bank, ONE Savings – 4.21% APY
Required opening deposit: Any amount. Minimum balance requirement: $1,500 to earn stated APY (or $5,000 to earn stated APY with monthly qualifying deposits that are not direct deposits). Other requirements/limits: $1,500 in monthly qualifying direct deposits (or $5,000 in monthly qualifying deposits that are not direct deposits). Monthly fee: None. ATM card available: Yes. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Axos is a digital bank launched in 2000, headquartered in San Diego.
Bask Bank, Interest Savings – 4.10% APY
Minimum deposit requirement: None. Minimum ongoing balance: None. Other requirements/limits: 1) 3.75% base rate; 2) 0.10% boost for new customers who open an account between May 1, 2026, and July 31, 2026; 3) 0.25% boost for each month with qualifying automated deposits through Dec. 31, 2026; 4) qualifying automated deposits include payroll deposits or recurring deposits from an external bank. Monthly fee: None. ATM card: No. Mobile check deposit: Yes. Checking accounts available: No. CDs available: Yes. Bask Bank is a division of FDIC-insured Texas Capital Bank, headquartered in Dallas. As an online-only bank, Bask has no physical branches.
CIT Bank, Platinum Savings – 4.10% APY
Required opening deposit: $100. Minimum balance requirement: $5,000 to earn stated APY. Other requirements/limits: Base APY of 3.75%, plus an additional 0.35% for the first 6 months on balances of at least $5,000 when opening with the promo code CITBOOST. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Established in 2009, CIT Bank operates branches in California, Texas, Florida, Arizona, Colorado, Nevada, Kansas, Nebraska, and Hawaii, while also offering products online.
Climate First Bank, Super Duper Savings Account – 4.01% APY
Required opening deposit: $50. Minimum balance requirement: Any amount. Other requirements/limits: None. Monthly fee: None with e-statements; otherwise $5. ATM card: Yes. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Climate First Bank was established in 2021, has three locations in Florida, and offers online banking.
Vio Bank, Online Savings Account – 4.01% APY
Required opening deposit: $100. Minimum balance requirement: Any amount. Other requirements/limits: None. Monthly fee: None. ATM card: No. Mobile check deposit: Yes. Checking accounts available: No. CDs available: Yes. Vio Bank is the online banking division of MidFirst Bank, an Oklahoma institution established in 1911 that is among the Top 100 largest U.S. banks.
Peak Bank, Envision High-Yield Savings – 4.01% APY
Required opening deposit: $100. Minimum balance requirement: Any amount. Other requirements/limits: Promotional APY limited to new accounts. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: No. CDs available: Yes. Peak Bank is an online-only division of Idaho First Bank, which dates back to 2005 and is headquartered in McCall, Idaho.
TotalBank, Money Market Account – 4.01% APY
Required opening deposit: $25,000. Minimum balance requirement: $2,500 to earn stated APY. Other requirements/limits: None. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: No. CDs available: Yes. TotalBank is an online-only operation of City National Bank of Florida, established in Miami in 1946. TotalBank is available to customers nationwide except for Florida residents. Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
Vibrant Credit Union, Preferred Savings – 4.00% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: None. Monthly fee: None. ATM card available: Yes, but a checking account is required. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Anyone can join Vibrant Credit Union through membership in the Illinois Consumer Council and by maintaining a balance of $5 in a savings account. Headquartered in Moline, Illinois, Vibrant dates back to 1935. Advertised rate is for balances less than $15,000.
CineFi, High-Yield Savings Account – 4.00% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: Credit union membership available to anyone nationwide who agrees to a complimentary one-year membership to Filmmakers Alliance. Membership does not need to be renewed to maintain credit union membership. Monthly fee: None. ATM card available: A debit card is available. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: No. CineFi was launched in 2025 as a digital division of First Entertainment Credit Union, headquartered in Hollywood, California, where it was formed in 1967. CineFi is NCUA-insured through First Entertainment.
E*TRADE from Morgan Stanley, Premium Savings Account – 4.00% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: Base rate of 3.35% APY with a 0.65% APY boost for new accounts opened by Sept. 30, 2026. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. Banking products are FDIC-insured through Morgan Stanley Private Bank, which is headquartered in Purchase, New York, and was established in 1996. It acquired E*TRADE in 2022.
LendingClub, LevelUp Savings – 4.00% APY
Required opening deposit: Any amount. Minimum balance requirement: Any amount. Other requirements/limits: $250 in monthly deposits, otherwise 3.00% APY. Monthly fee: None. ATM card available: Yes. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. LendingClub began operations as an online full-spectrum bank in 2007, with the parent company, LendingClub Bank, being an FDIC member since 1987. It is headquartered in San Francisco.
Bread Savings, High-Yield Savings Account – 4.00% APY
Minimum opening deposit: $100. Minimum ongoing balance: Any amount. Other requirements/limits: None. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: No. CDs available: Yes. Bread Savings is the online consumer deposits bank operated by credit card issuer Comenity Capital Bank.
First National Bank of America, High-Yield Savings Special – 4.00% APY
Required opening deposit: $1,000. Minimum balance requirement: Any amount. Other requirements/limits: New money only. Monthly fee: None with $1,000 minimum balance; otherwise $10. ATM card available: No. Mobile check deposit: No. Checking accounts available: Yes. CDs available: Yes. Headquartered in East Lansing, Michigan, First National Bank of America serves customers nationwide through online banking. It was founded in 1955 and has three locations in Michigan.
Valley Direct, High-Yield Savings – 4.00% APY
Required opening deposit: $1,000. Minimum balance requirement: Any amount. Other requirements/limits: New customers only. Monthly fee: None. ATM card available: No. Mobile check deposit: Yes. Checking accounts available: No. CDs available: Yes. Valley Direct is an online division of Valley National Bank, which was established in 1927 and is headquartered in Passaic, New Jersey.
Poppy Bank, Premier Online Savings – 4.00% APY
Required opening deposit: Any amount. Minimum balance requirement: $1,000 to earn stated APY. Other requirements/limits: None. Monthly fee: None with electronic statements; otherwise $5 paper statement fee. ATM card available: Yes. Mobile check deposit: No. Checking accounts available: Yes. CDs available: Yes. Founded in 2005, Poppy Bank is based in Santa Rosa, California, and operates 18 branches across the state. It serves nationwide customers online.
Badass Bank, Money Market Account – 4.00% APY
Required opening deposit: $1,000. Minimum balance requirement: $1,000 to earn stated APY. Other requirements/limits: None. Monthly fee: None with $1,000 minimum balance; otherwise $10. ATM card available: No, but a debit card is available. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: No. Badass Bank is FDIC-insured through and a digital division of Stryv Bank, which is headquartered in Park City, Kansas, and dates back to 1975. Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
OnPath Credit Union, Elite Money Market Account – 4.00% APY
Required opening deposit: $25,000. Minimum balance requirement: $25,000. Other requirements/limits: 1) New money required; 2) Only three fee-free withdrawals allowed each month; 3) Credit union membership required, available to anyone nationwide by making a $5 donation to the OnPath Foundation. Monthly fee: None. ATM card available: Yes. Mobile check deposit: Yes. Checking accounts available: Yes. CDs available: Yes. OnPath began as ASI (Avondale Shipyards Inc.) Federal Credit Union in 1961 and took its current name in 2019. Headquartered in Metairie, Louisiana, it has 11 locations in the state. Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
In the News
The Federal Reserve left its key interest rate unchanged at its April 29 meeting, maintaining a range of 3.50%–3.75%. This is the third consecutive meeting the Fed has made no change after six rate cuts since September 2024. High-yield savings account rates closely follow the federal funds rate, which means savings rates are expected to decline if the Fed lowers rates later this year.
Why You Can Trust Us
Investopedia collects savings account rates from over 100 banks and credit unions every weekday. When ranking high-yield savings account rates, we look at factors that will help readers choose the best savings account, like minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best high-yield savings account rates since 2019.
What Is a High-Yield Savings Account?
As the name implies, high-yield savings accounts pay much higher interest rates than traditional ones. Often offered online, whether by an internet-only bank or the online division of a brick-and-mortar bank, they're a type of savings account based on the idea of holding your savings wherever it can earn a competitively high yield, even if that's a different bank than where you hold your checking account.
The difference in savings account interest rates can be dramatic, with the top accounts in the country typically offering 10 to 12 times the national average rate. And you can still keep your checking account where it is, because it's simple to link a high-yield savings account to your primary account for easy transfers.
Reasons to Open a High-Yield Savings Account
Stashing some of your cash in a savings account is smart whether you're saving for something specific, or just want to sock money away for when you'll need it in the future. Here are some common reasons to open a savings account:
- Build an emergency fund: By putting your emergency money in a high-yield account, you'll be able to boost your balance with monthly interest earnings, while also leaving your funds fully accessible should a financial emergency arise.
- Reach a specific goal: This may include buying a house or a car, sending your son or daughter to college, or going on a special vacation.
- Grow your savings: Earning interest on your money means your savings balance will grow faster than if you were making monthly contributions and not earning anything.
How Much Will a High-Yield Savings Account Pay on $1,000, $5,000, or Higher Balances?
The amount of money you can earn in a high-yield savings account will be based on how much you deposit and what your interest rate is. Based on initial deposits of different amounts from $1,000 to $100,000, we calculate below what your balance would be at the end of one year if you put the funds in a top-paying high-yield savings account, paying 5.00%, vs. a savings account paying the national average of 0.38% APY. Note that while you can earn a great deal more than the national average rate, your bank may also pay a lot less. For instance, Chase, Bank of America, and Wells Fargo all pay close to zero interest on their traditional savings accounts, at just 0.01% APY.
| APY | $1,000 | $2,500 | $5,000 | $10,000 | $20,000 | $50,000 | $100,000 | |
|---|---|---|---|---|---|---|---|---|
| 1 year at national average rate | 0.38% | $1,004 | $2,509 | $5,019 | $10,038 | $20,076 | $50,190 | $100,380 |
| 1 year at today's top rate | 5.00% | $1,050 | $2,625 | $5,250 | $10,500 | $21,000 | $52,500 | $105,000 |
| Added earnings from HYSA | + $46 | + $116 | + $231 | + $462 | + $924 | + $2,310 | + $4,620 |
Of course, you can boost your balance even more by regularly adding deposits to your savings account. One smart way to do this is to set up an automated transfer from your checking account once a month.
How to Choose the Best High-Yield Savings Account
Once you've decided to open up a new high-yield savings account, you'll want to do your homework to make sure you're choosing the best one for your needs. Searching for a top annual percentage yield (APY) is a good starting point when choosing a high-yield savings account, as you'll want to earn a competitive rate.
Though the interest rate can change, it makes sense to choose an account that is paying one of the highest rates in the country, since the higher your rate, the more interest you'll collect every month and every year. Also, through the power of compounding, you can make interest off your interest, and the higher the APY on your account, the better.
But beyond the interest rate, you'll also want to make sure the account either doesn't have a minimum balance requirement, or has one that you feel confident you can regularly maintain. Also, note if there is a minimum balance required to earn the top APY.
Why Different Banks Pay Different Rates
Each bank is a business that has different needs for customer deposits, operating in its own regional market. As a result, some banks have to work harder to attract funds, such as smaller banks with names you may not be familiar with. Also important is the lending activity the bank is undertaking. If, for instance, a bank is in a strategic push to build its commercial lending portfolio, it will need to attract more customer deposits in order to fund those loans it hopes to make. One way they can do this is offering a promotional APY for a short period to boost their deposits balance, but then lowering it after they've accumulated enough funds.
Common Savings Account Terms to Understand
When researching high-yield savings accounts to find the best one for you, be sure you understand what these commonly used terms mean.
- Minimum opening deposit or initial deposit: Some bank accounts stipulate a minimum deposit you need to make to open the account. It could be quite low, like $25, or as much as $25,000 for some high-balance accounts. And some accounts have no requirement, letting you open the account with no money deposited. Note that if an account has an initial deposit requirement but then no minimum ongoing balance, you do not need to keep that money at the bank after your initial deposit.
- Minimum balance requirement or ongoing balance: Unlike a minimum initial deposit, a minimum balance requirement refers to the least amount of money you can keep in the account on an ongoing basis. Falling below the minimum requirement could mean being hit with a fee, or could instead mean you won't earn the high-yield interest rate on the account.
- Monthly maintenance fee: Unlike fees triggered by a transaction, such as an insufficient funds fee or a wire transfer fee, the monthly service fee is a standard fee you could be charged every statement cycle. Many accounts do not have a monthly maintenance fee, while some others provide ways for you to avoid the fee each month.
- Mobile check deposit: The ability to deposit checks using the camera on your smartphone or tablet—rather than having to take the check to a branch—is called mobile check deposit or remote check deposit.
- External or ACH transfer: The electronic process of moving funds between two financial institutions is called an external or ACH transfer. Virtually every high-yield savings account allows you to send or receive external transfers.
How to Open a High-Yield Savings Account
After comparing the best high-yield savings accounts and landing on a choice, the next step is to open the account online. Here's how that generally works:
- The bank or credit union will ask you to provide various personal information, including your social security number, since your interest earnings will be reportable to the IRS.
- The bank's account opening process will also involve security measures designed to ensure you are who you say you are.
- You'll also be presented with one or more options on how to fund your account. The most common method is by ACH transfer from another bank, and you'll be provided with instructions on how to set this up.
- Alternatively, some institutions allow you to make your initial deposit with a debit card, a credit card, or even a paper check sent through the mail.
Once the application process is completed, you may be able to set up online banking right away, or you may need to wait a day or two for your account to be fully opened. Transfers between different institutions will take one to three days to complete, so be sure to keep enough of a cash cushion either in your checking account or in a linked savings account at that same institution.
Pros and Cons of High-Yield Savings Accounts
Pros:
- Higher APY than traditional savings accounts
- Ability to withdraw or deposit funds at any time
- Extremely safe, with virtually no risk
- Excellent vehicle for an emergency fund or saving for a big goal
- In times of rising rates, your APY may go up
Cons:
- Earning a top yield may require opening an account with a new institution
- Some accounts have withdrawal limits of six per month
- Easy access can make it tempting to dip into savings
- Account could have a fee or minimum balance requirement
- In times of decreasing rates, your APY may go down
Who Is a High-Yield Savings Account Best For?
Anyone with surplus savings in the bank can benefit from a high-yield savings account. If you have more money in the bank than you need to hold in your checking account, high-yield savings accounts offer a way to sock some of those funds away to earn an especially high annual percentage yield (APY). High-yield savings accounts are also well suited to those comfortable with internet or mobile banking, as moving money in and out of an online savings account must generally be done on your computer or via a mobile banking app on your phone.
When choosing the best savings account for you, you'll want to check the rules of the account, such as whether it limits the number of withdrawals you can make in a month, and if you'll be assessed a monthly maintenance fee. Lastly, check that the bank is an FDIC member (or an NCUA member if it's a credit union) so that your money is insured by the federal government—up to $250,000 per depositor—should the bank or credit union fail. Online reviews of a bank's customer service may also prove useful.
Alternatives to High-Yield Savings Accounts
High-yield savings accounts are just one vehicle for stashing your cash, and they often pay the highest APYs. But there are several alternatives for holding your funds until you need them.
High-Yield Savings Account vs. Checking Account
While the easiest place to keep surplus funds is in your checking account, this has two major downsides. First, money kept in your everyday checking account is very easy to spend, making it difficult to leave earmarked as savings. Second, checking accounts tend not to pay any interest—or if they do, the rate is a pittance. A high-yield savings account offers an opportunity to earn a reasonable return on your money. Some high-yield or rewards checking accounts do exist, with more competitive rates, but these accounts require jumping through some hoops in order to earn their high rate.
High-Yield Savings Account vs. Traditional Savings Account
There is no formal definition of how high a rate needs to be to qualify as "high yield." In short, it's up to each institution how to name their savings accounts. Traditional banks and credit unions more often offer traditional savings accounts, while online banks are more likely to offer a high-yield savings account. But again, the distinctions are fuzzy, rather than hard-and-fast rules. We track the savings account rates of over 100 banks and credit unions every weekday. While we do check the rates at big banks—including the five largest banks of Chase, Bank of America, Wells Fargo, Citi, and U.S. Bank—their rates aren't usually high enough to make our ranking.
High-Yield Savings Account vs. Money Market Account
A money market account operates very much like a savings account, with the exception that it allows writing checks. In the past, money market accounts typically imposed high minimum deposit requirements in exchange for higher rates than savings accounts. This has shifted in recent years, however, with savings and money market accounts both having a variety of required minimum balances—including no-minimums accounts. In addition, high-yield savings accounts often pay more competitive rates than money markets. "When a client has money they won't need in the next 12 to 24 months, I encourage them to take advantage of a high-yield savings account or money market account to hedge against inflation as well remove the funds from their actively used checking accounts. Basically, a 'hands off account,'" said Sibyl Slade, a member of Investopedia's Financial Advisor Council.
High-Yield Savings Account vs. Certificate of Deposit (CD)
If some of your savings can be socked away and not touched for a period of time, you may be able to earn a higher rate with a certificate of deposit. CDs require you to commit your funds to remain on deposit for a number of months or years, imposing a penalty if you request to withdraw the funds before the CD's maturity date. But in exchange, your interest rate is locked and guaranteed, even if the Fed lowers rates.
How We Find the Best High-Yield Savings Account Rates
Every business day, Investopedia tracks the rate data of about 100 banks and credit unions that offer high-yield savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts first and foremost by the annual percentage yield (APY) offered. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria, we exclude credit unions whose donation requirement is $40 or more. If the savings account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms.
Frequently Asked Questions
What Does "HYSA" Mean?
HYSA is simply an abbreviation for "high-yield savings account." In contrast to traditional savings accounts, high-yield savings accounts aim to attract customers and their deposits by offering a much more competitive interest rate.
Are High-Yield Savings Accounts Worth It?
For cash savings that you want easy access to, it's hard to beat a high-yield savings account. You can earn a competitive rate—above inflation—and you can withdraw the money whenever you need. They're more liquid than CDs, which lock your money up for a specific amount of time, and they're less risky than stock investing because you can't lose money (other than through account fees, which can usually be avoided).
Are High-Yield Savings Accounts Taxed?
Yes, you must pay taxes on the earnings of a savings account. The interest you earn from a bank account will need to be reported on your annual tax return. The bank where you hold your account will send you and the IRS a Form 1099-INT in January indicating how much interest you were paid in the previous calendar year, which you must then report on your tax return.
Does Chase Have a High-Yield Savings Account?
Although Chase has savings accounts, they aren't high-yield accounts. Chase accounts usually offer very low rates, even the Premier Savings account. We suggest keeping your extra cash elsewhere, like one of the high-yield savings accounts above.
Outlook
With the top high-yield savings account paying 5.00% APY—more than 13 times the national average—now remains a strong time to put surplus cash to work. Because savings rates closely follow the federal funds rate, and the Federal Reserve has held its key rate at 3.50%–3.75% after six cuts since September 2024, rates could decline if the Fed eases policy later this year. Locking in a competitive account today lets you maximize earnings while you still can, all with the safety of FDIC or NCUA insurance up to $250,000 per depositor.
