How to Choose the Best High-Yield Savings Account for You

Milan Markovic/GettyImages

The best high-yield savings account combines a competitive interest rate with the features you actually need. Today, top accounts pay up to 4.20% APY — more than six times the 0.61% national average.

That gap translates to real money. On a $10,000 balance, you’d earn $420 per year at 4.20% versus just $61 at the average rate. That’s over $350 in free money just for parking your savings in the right account.

Here’s how to find the best one for your situation.

1. Start with the highest APY you can find

ate is everything when choosing a high-yield savings account. The higher your APY, the more your money grows — simple as that.

• Best high-yield savings accounts: up to 4.20% APY
• Average savings account: 0.61% APY
• Big bank savings accounts: Often 0.01-0.10% APY

Online banks consistently offer the highest rates because they don’t pay for physical branches. Those savings go straight to your pocket in the form of better APYs.

“Don’t just look at the headline rate when comparing accounts. Check if there are balance requirements to earn the advertised APY, promotional rates that drop after a few months or terms like minimum monthly deposits. The best high-yield accounts offer their top rates with minimal strings attached.”

— Hanna Horvath, CFP & Managing Editor at Bankrate

Keep in mind that some banks offer tiered or promotional rates depending on your balance or require you to meet certain conditions, like maintaining a minimum balance or making a minimum number of transactions per month.

2. Confirm FDIC or NCUA insurance

This is non-negotiable. Only open accounts that are FDIC-insured (banks) or NCUA-insured (credit unions). These federal programs protect your deposits up to $250,000 per depositor, per institution if the bank fails. Your money is completely safe, backed by the full faith and credit of the U.S. government.

Verify insurance before opening any account:

3. Eliminate accounts with monthly fees

Monthly maintenance fees will eat your interest earnings alive. A $5 monthly fee costs you $60 per year—wiping out most of your gains on a modest balance.

The best high-yield savings accounts have: no monthly maintenance fees, no minimum balance requirements (or very low ones, like $100) and no fees for standard transactions.

Some accounts waive fees if you maintain a certain balance or link a checking account. But why bother? Plenty of excellent high-yield accounts charge zero fees, period.

Other red flags to avoid include monthly service charges, minimum balance fees, paper statement fees or account closure fees if you close your account within 90-180 days of opening it.

You can explore Bankrate’s list of savings accounts with no minimum deposits and our list of banks that reimburse ATM fees to compare options.

4. Check essential digital features

Your high-yield savings account should make banking effortless. Look for these must-have features:

• Mobile banking: Mobile check deposit to deposit checks with your phone, account alerts for balance changes and deposits, touch ID or Face ID for secure login
• Money movement: Automatic transfers to schedule regular deposits from checking, external account linking to move money to other banks, fast transfer speeds (1-2 business days maximum) and support for services like Zelle or Venmo.
• Account management: Multiple savings “buckets” for different goals (emergency fund, vacation, down payment), savings goal tracking to visualize progress and real-time balance updates.

See the best banks for mobile banking to compare digital features side-by-side.

5. Understand withdrawal access

Federal Regulation D traditionally limited savings accounts to six “convenient” withdrawals per month. While this limit was suspended in 2020, many banks still restrict transactions.

What you need to know: Unlimited in-person withdrawals and ATM access is typically allowed with most accounts, but electronic transfers and debit card transactions may be limited. Some banks charge fees if you exceed their transaction limits, others may convert your account to checking if you make too many withdrawals.

Check the fine print on withdrawal policies before opening. If you need frequent access to your money, consider pairing your high-yield savings account with a high-yield checking account for everyday transactions.

6. Compare customer service options

When you need help, you want to reach someone quickly. Consider if the bank offers 24/7 phone support or live chat during business hours. If you value a physical presence, look up branch locations in your area or ATM network access for deposits and withdrawals.

Most top-paying high-yield savings accounts are at online-only banks without branches. They compensate with excellent phone support and digital tools. But if you prefer in-person banking, you may need to accept a slightly lower rate.

Bottom line

The right high-yield savings account combines maximum earnings with practical access to your money. Start by comparing APYs — that’s where you’ll see the biggest impact on your balance. Then evaluate fees, FDIC insurance and digital features to find your best match.

Your action plan:

1. Compare current high-yield savings rates to see which accounts pay the most
2. Open an account with a top-paying, FDIC-insured bank
3. Set up automatic transfers from checking to build savings consistently
4. Review your rate every 6 months to ensure you’re still earning competitively

Consider opening multiple high-yield savings accounts for different goals — one for emergencies, another for a vacation fund, perhaps a third for a home down payment. This strategy, combined with automatic transfers, turns saving into an effortless habit.

If your bank drops its rate significantly below market average, don’t hesitate to switch. Moving to a new high-yield account takes less than 20 minutes online and could earn you hundreds more per year.