Credible
Get Rates
  • Refinance Student Loans
    • Compare Options
      • Best Refinancing Companies
      • Lender Reviews
      • Refinance Student Loans
      • Student Loan Consolidation
    • Learn the Basics
      • Fixed vs. Variable Rates
      • Forgiveness Programs
      • Consolidation vs Refinancing
      • Repayment Plans
      • More on Student Refi
    • How to
      • Consolidate Your Student Loans
      • Pay Off Your Student Loans
      • Lower Your Interest Rate
    • Tools
      • Current Student Loan Refi Rates
      • Refinancing Calculator
      • Repayment Calculator
  • Student Loans
    • Compare Options
      • Best Private Student Loans
      • Lender Reviews
      • Private Student Loans
      • Parent Student Loans
    • Learn the Basics
      • Student Loan Limits
      • Living Expenses
      • Applying for FAFSA
      • Federal Student Loans
      • Student Loan Interest Rates
      • More on Student Loans
    • How To
      • Pay for College
      • Take Out Student Loans
      • Apply Without Cosigner
      • Apply for Student Loans
      • Pay for Grad School
    • Tools
      • Current Student Loan Rates
      • Student Loan Interest Calculator: Estimate Payments
  • Personal Loans
    • Compare Options
      • Best Personal Loan Lenders
      • Lender Reviews
      • Get Personal Loan Rates
    • Learn the Basics
      • How to Qualify
      • How to Get a Loan
      • Where to Get a Loan
      • Personal Loans with Cosigner
      • Pay Off Credit Card Debt
      • More on Personal Loans
    • Best for
      • Credit Card Consolidation
      • Debt Consolidation Loans
      • Home Improvement Loans
      • Good Credit
      • Fair Credit
      • Bad Credit
    • Tools
      • Current Personal Loan Rates
      • Personal Loan Calculator
  • Mortgages
    • Compare Options
      • Mortgage Refinance
      • Home Loan
      • Mortgage Preapproval
      • Mortgage Payment Calculator
    • Compare Rates
      • Mortgage Refinance Rates
      • 30-Year Fixed Refinance Rates
      • 15-Year Fixed Refinance Rates
      • Home Loan Rates
      • 15-Year Fixed Mortgage Rates
      • 30-Year Fixed Mortgage Rates
    • Learn the Basics
      • How to Buy a House
      • How to Refinance Your Mortgage
      • How to Get the Best Rate
      • Cash-Out Refinancing
      • More on Home Loans and Refi
    • Pay Off Mortgage
      • Home Equity to Pay Off Debt
      • Paying Off Mortgage Early
      • Mortgage Refinance Cost
  • Company
    • About
    • Reviews
    • Blog
    • Lenders
    • Editorial Guidelines
    • FAQs
    • Press
  • Find My Rate

High-Yield Savings Accounts

High-yield savings accounts come with more flexibility than certificates of deposit and less risk than other investments — plus higher interest rates.

Eric Rosenberg Eric Rosenberg Updated November 5, 2020

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

With a high-yield savings account, you can safely save for emergencies or other long-term financial goals.

Here’s what you should know about high-yield savings accounts:

  • Compare high-yield savings accounts
  • Who should get a high-yield savings account?
  • What to look for in a high-yield savings account

Compare high-yield savings accounts

If you’re not sure where to start, here are several options for high-yield savings accounts. Keep in mind that none of these accounts require you to maintain a monthly balance nor do they charge monthly maintenance fees.

The options in the table below are Credible partners:


What is a high-yield savings account?

A high-yield savings account is a type of savings account that typically offers above-average interest rates. The national average interest rate on standard savings accounts is only 0.05%.* But with a high-yield savings account, you could get a much higher rate of return.

This higher interest rate can make a high-yield savings account ideal if you’re saving for an emergency fund, vacation, new car, down payment, and more.

💵 See How Much You Could Save 💵

*National average accurate as of September 2020 and is subject to change.

Depending on the bank, a high-yield savings account will likely be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250,000 per depositor.

Also keep in mind that like other savings accounts, high-yield savings accounts are limited to six monthly withdrawals.

Pros of a high-yield savings account

  • Higher interest rates than the average savings account
  • FDIC or NCUA insurance protects your money
  • Easy access to your funds

Cons of a high-yield savings account

  • Many high-yield savings accounts are only available from online banks, meaning you won’t have access to a brick-and-mortar location
  • Typically limited to six monthly withdrawals
  • Lower return than you might get from other types of investments

Who should get a high-yield savings account?

Most of us could benefit from a high-yield savings account. It’s important to save for emergencies and other goals you might have — and if you’re saving anyway, you might as well get a higher interest rate with a high-yield savings account.

Keep in mind that it generally takes a month or more to see returns on a savings account. So if you’re planning to save money for a longer period of time, a high-yield savings account could be a good idea.

Once you’ve hit your savings goals, you might consider putting additional funds into investments. Just keep in mind that investing generally comes with some risk, while a high-yield savings account has little inherent risk to your money.

What if I won’t be saving for long? If you’re only planning to save for a few weeks, a checking account might be a better option.

You likely won’t earn any interest with a checking account, but it will give you a place to set aside your money with easy access.

Check Out: What Is the Debt Snowball Method?

How to get a high-yield savings account

Opening a high-yield savings account — whether online or in-person — is a quick and easy process. Follow these steps to get started:

  • Choose a high-yield savings account: Consider different options to see which one best meets your needs.
  • Complete the account application: Plan on providing personal information such as your contact information. Your Social Security number is also typically required when you fill out the application. Unlike getting a loan, your credit score and history generally aren’t a factor for getting a new savings account.
  • Fund your new account: To deposit money into your new account, you might be able to link to another bank account to transfer the funds online. Depending on the bank, other funding options might include mailing a check, depositing a check using the bank’s app, or a wire transfer.

Find your high-yield savings account
Compare APY and estimated earnings from our banking partners

See Your Savings Options

Trustpilot

Types of savings accounts

Depending on the bank or credit union you choose, you might have a few savings options to choose from on top of high-yield savings accounts.

Here are some commonly available types of savings accounts:

  • Traditional savings accounts typically offer lower interest rates compared to other types of savings accounts. They might also have minimum balance requirements to avoid monthly service fees.
  • High-yield savings accounts generally come with few or no fees as well as higher-than-average interest rates. Keep in mind that many high-yield savings accounts are only available from online banks, though there are some available from banks with brick-and-mortar branches.
  • Certificates of deposit (CD) let you earn a higher interest rate by locking your funds away for a certain amount of time. Typically, the longer you lock up your money, the higher the interest rate you’ll earn. For example, you might place your funds in a CD for six months, a year, or even five years, depending on the type of CD you choose.

Learn More: Using the Debt Avalanche Method to Pay Off Debt

What to look for in a high-yield savings account

Here are a few things to keep in mind when considering a high-yield savings account:

  • Annual percentage yield (APY): The APY on an account is how much you’ll earn in returns in one year. This is usually one of the most important factors to look at for a savings account.
  • Minimum balance: Some banks require you to maintain a minimum balance to keep your high-yield savings account open. If your balance dips below this amount, you might be charged a fee. There are also several high-yield savings accounts available without minimum balance requirements — and with no fees.
  • Compounding method: When your interest is compounded, it’s calculated and added to your account. Most savings accounts compound interest either daily or monthly (or both, in some cases). This might have a slight effect on how much interest you’ll earn.
  • Ways to withdraw or deposit funds: Depending on the account, withdrawal and deposit options might include ATM access with an ATM card, online transfers, wire transfers, or mobile check deposits.



About the author
Eric Rosenberg
Eric Rosenberg

Eric Rosenberg is a Credible expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.

Read More

Home » All » Banking » High-Yield Savings Accounts

Personal Loan Basics


  • How to Get a Personal Loan
  • Qualify for a Personal Loan
  • Where to Get a Personal Loan
  • Time to Fund a Personal Loan
  • How to Get Out of Credit Card Debt

Personal Loan Amounts

  • Get a $5,000 Loan
  • Get a $10,000 Loan
  • Get a $20,000 Loan
  • Get a $50,000 Loan
  • Get a $100,000 Loan

Tools and Resources

  • Good Credit Loans
  • Fair Credit Loans
  • Bad Credit Loans
  • Get Personal Loan Rates
  • Current Personal Loan Rates
  • Best Personal Loan Lenders
  • Best Debt Consolidation Loans
  • Personal Loan Calculator
  • Lender Reviews

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)

Related Articles

Personal Finance

Here Are 5 Money Moves to Start Saving Right Now

Student Loans

Parents Paying for College: Tips and Advice

Personal Finance

If you flunk this financial literacy test, good luck paying off your student loan debt

  • Read More
    • Refi Student Loans
    • In School Loans
    • Personal Loans
    • Mortgages
  • Resources
    • Lender Reviews
    • Loan Calculators
    • Data Insights
    • Debt Statistics
    • Sitemap
  • Compare
    • Student Loan Refinance
      • Current Student Loan Refi Rates
    • Student Loan Consolidation
    • Private Student Loans
      • Current Student Loan Rates
    • Personal Loans
      • Current Personal Loan Rates
    • Refinance Mortgage
      • Mortgage Refinance Rates
        • 15-Year Fixed Refinance Rates
        • 30-Year Fixed Refinance Rates
    • Home Loans
      • Home Loan Rates
        • 15-Year Fixed Mortgage Rates
        • 30-Year Fixed Mortgage Rates
  • Top Lenders
    • Best Student Loan Refi Companies
    • Best Private Student Loans
    • Best Personal Loans
  • Company
    • About
    • Reviews
    • Blog
    • Editorial Staff
    • Editorial Guidelines
    • News
    • Press
  • Legal
    • Terms of Use
    • Privacy Policy

© 2021 Credible


Credible Operations, Inc. NMLS ID# 1681276 | NMLS Consumer Access | Licenses and Disclosures
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.