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If you’re looking for a secure place to save money for an emergency or a long-term financial goal, a high-yield savings account can be a great option. You can find high-yield accounts through traditional banking institutions or online.
While most traditional savings accounts pay interest, it’ll typically be at a very low rate. High-yield savings accounts, however, often provide savers with a more robust interest rate.
Here’s what you should know about high-yield savings accounts:
- Compare high-yield savings accounts
- What is a high yield savings account?
- Who should get a high-yield savings account?
- How to open a high-yield savings account
- Types of savings accounts
- 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, and they don’t charge monthly maintenance fees.
The options in the table below are Credible partners:
Discover Bank Online Savings
The online savings account through Discover Bank provides savers with a 1.10% APY. Interest accrues daily, compounds monthly, and is paid to your account each month. There’s no minimum initial deposit requirement and no insufficient funds fee.
American Express High Yield Savings Account
The American Express high-yield savings account will give you 1.00% APY. Interest accrues daily, compounds monthly, and is paid to your account each month. You can open the account with $1, although any account that remains at $0 for 180 days will be automatically closed.
Wealthfront Cash
The Wealthfront Cash account offers savers a 1.40% APY. Interest accrues daily, compounds monthly, and is paid to your account each month. You can open the account with just $1.
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 0.07% as of May 2022, according to the Federal Deposit Insurance Corporation (FDIC). 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.
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*National average accurate as of September 2020 and is subject to change.
Under FDIC Deposit Insurance Regulations, deposits in insured institutions are eligible for deposit insurance. A high-yield savings account may be insured by the FDIC for up to $250,000 per depositor.
Pros of a high-yield savings account
- Higher interest rates than a traditional savings account
- FDIC insured to protect your money
- Easy access to funds
Saving your money in a high-yield savings account gives you an excellent combination of growth, security, and accessibility. Not only can you count on your savings to grow faster than it would in a traditional savings account, but you can rest assured that your money, up to coverage limits specified under FDIC Deposit Insurance Regulations (12 CFR 330; 12 CFR 360; 12 CFR 370), will never lose principal nor disappear in case of a bank failure, since it’s insured by the FDIC.
Though high-yield savings accounts have a lot to offer savers, they shouldn’t be considered as a replacement for a checking account. Even though many high-yield savings accounts offer ATM access, there may be no brick-and-mortar bank locations, making it tougher to access your money in an emergency. 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. 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? Opening a high-yield savings account — whether online or in-person — is a quick and easy process. Follow these steps to get started: 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: Learn More: Using the Debt Avalanche Method to Pay Off Debt Here are a few things to keep in mind when considering a high-yield savings account:Cons of a high-yield savings account
Who should get a high-yield savings account?
How to open a high-yield savings account
Other types of savings accounts
What to look for in a high-yield savings account