How to open a high-yield savings account
Once you choose a high-yield savings account, you’ll fill out an application with your name, Social Security number and contact information. After you’re approved, you’ll need to fund your new account. That’s typically done by transferring money from a traditional savings or checking account. That means you’ll also need the routing and account numbers for the bank account you’ll use to fund your new high-yield savings account.
You might also be able to fund the account regularly through automatic transfers or direct deposit with your employer, which will require additional information. If you want to fund the account through direct deposit, you’ll need to provide your employer with the high-yield savings routing and account numbers. The interest on the funds you deposit will compound, growing your savings daily or monthly as scheduled by your financial institution. You can continue depositing money into the account or withdrawing money when you need it.
Why some high-APY accounts didn’t make our list
There are many high-yield savings accounts out there and each one provides its own set of benefits. However, to compile our list of the best high-yield savings accounts, we used specific criteria that include high APYs, low or no fees as well as support and additional benefits for clients.
While there were some accounts that offered high APYs, they had high monthly maintenance fees or balance requirements that didn’t meet our standards. Many credit unions were also omitted because they were more exclusive, limiting membership to residents of certain states, employees of specific companies or members of certain organizations or religious groups.
Which high-yield savings account is best for your balance?
When choosing the best high-yield savings account for your financial goals, it’s important to consider the minimum account balance required to earn the highest yield. Sometimes, the financial institution with the highest APY might not be the best choice depending on how much money you wish to deposit.
Under $5,000
GO2bank’s high-yield savings account has the highest APY on our list. However, you only earn 4.50% APY on the first $5,000. Any amount over $5,000 won’t earn any interest.
$5,000 to $25,000
You can earn a 4.10% APY from CIT Bank’s platinum savings account if your balance is at least $5,000, during a six-month promotional period after opening the account. Once that period ends, you will earn 3.75%. Any amount below $5,000 earns 0.25% APY, which is significantly lower than the other high-yield savings accounts on our list.
$25,000+
Axos ONE has the second-highest APY on the list, but doesn’t place limits on earning that APY like the top account does. That means you can earn 4.21% APY on your full balance up to $249,999. Once your balance equals or surpasses $250,000, your APY lowers to 3.50%.
Over FDIC limits ($250,000+)
To receive the highest APY offered through a Barclays Tiered Savings account (3.65%), you need a minimum balance of at least $250,000. Any amount below that earns an APY of 3.50%.
What to do if your high-yield savings account rate drops
High-yield savings accounts have variable APYs, meaning they can change over time. Rate changes often happen when there’s more competition with other deposit accounts, there’s an economic shift or, more commonly, the Federal Reserve increases or decreases the federal-funds rate.
If your high-yield savings account rate drops, review current APYs from other financial institutions to see if your rate is still within range of other accounts or if there are higher rates available. If you find a better rate and want to switch, make sure you first understand the terms, features and pros and cons of the new high-yield savings account. You could also look into a different savings product that could get higher yields, like a money- market account or CD—which has a fixed rate that won’t change. Calculate the difference in annual or monthly earnings between your current rate and the new rate to make sure the switch is worth it.
When are savings rates going to fall?
Market conditions and the federal-funds rate influence the interest rates that financial institutions offer on their savings products. The Federal Open Market Committee meets eight times a year to determine appropriate policy to manage the labor market, inflation and economic conditions. If the Federal Reserve lowers interest rates at its meeting, we can expect to see interest rates for savings, CDs and other interest-bearing accounts dip in response.
What is a good APY for a high-yield savings account in August 2026?
Ideally, the best APY for a high-yield savings account is the highest one currently available, such as GO2bank’s 4.50% offering. However, two high-yield savings accounts with the same APYs could have different balance requirements that will impact your earning potential. For example, GO2bank only offers 4.50% on balances up to $5,000, and doesn’t pay interest on anything above that. If you have a very large account balance, you could earn more by choosing a slightly lower APY that applies to your entire balance.
When comparing banks and credit unions, you will see that many offer high-yield savings accounts with APYs at least 10 times higher than the national average. To help you determine what a competitive rate is, you can compare bank and credit union offerings to the top 1% average of high-yield savings accounts. Any savings account rate that matches or beats that could be considered a good APY.
Who should open a high-yield savings account?
High-yield savings accounts are a good option for anyone looking to make the most of their short-term savings goals, such as building an emergency fund or saving for a down payment on a house. While both CDs and high-yield savings accounts require time to grow funds, the money in a HYSA can be moved at your discretion at any point, while still offering high APYs. With CDs, on the other hand, many charge a penalty worth at least several months of interest if you withdraw your money before the term is up.
Should I have more than one high-interest savings account?
For some savers, a single savings account works just fine, while others find that having multiple accounts better suits their needs. There’s no one-size-fits-all recommendation; it ultimately comes down to personal preference and how easily you’re able to manage multiple accounts.
Some situations where you might consider having multiple high-yield savings accounts include:
- You have more than $250,000 in savings: FDIC insurance only covers deposits up to $250,000, so if you have more than that in a single account, you’re at risk of losing money in the event of a bank failure. Spreading out your savings across more than one bank can ensure you’re fully covered (though you might also want to consider whether you’re keeping too much in savings and if it’s worth it to invest some of those funds).
- You could be getting a higher APY elsewhere: If you are satisfied with your current bank but other institutions are paying higher APYs on their savings accounts, it might be worth opening another account to take advantage of the higher rate.
- To take advantage of other banks’ perks: It’s not uncommon for banks to run promotions to try to attract new clients, such as cash bonuses for opening a new account. If you don’t mind taking the time to sign up, you could earn some extra cash or other benefits by having multiple accounts.
- To easily track your savings goals: Some people like to have more than one account to keep their savings goals separate and easily track their progress. You might keep your emergency savings in one account and then savings for other expenses like vacations or bills in another, for example.
If you decide to open additional high-yield savings accounts, pay attention to the fees and minimum balance requirements that come with each account.
How much money should I keep in a savings account?
A good rule of thumb is to keep at least three to six months’ worth of living expenses in a savings account for emergencies, such as becoming unexpectedly unemployed or needing to pay for urgent repairs to your home. Beyond that, you can continue to add to your savings according to your needs and goals.
However, it’s also possible to keep too much money in a savings account—particularly if you exceed the $250,000 FDIC insurance limit in a single account. Having money in savings is important for emergencies when you need access to cash very suddenly. If that money is invested, you wouldn’t be able to access it until you sell those investments—and if the market happens to be down, you risk not having sufficient funds. Once you have a well-funded savings cushion, though, you should consider increasing the amount you put toward retirement or your taxable investment accounts. Money that’s invested generally grows faster than the funds you keep in a high-yield savings account.
What is the difference between a high-yield savings account and a traditional savings account?
Traditional savings accounts pay very little interest—typically less than 1%. This is below the average rate of inflation, which means your money actually loses value over time in these accounts.
It’s common to see these types of savings accounts offered at big financial institutions with a lot of bricks-and-mortar locations. There are benefits to keeping your money with these banks. If you have a branch near you, you can easily make in-person withdrawals or deposits. It can also be more convenient to open a savings account at the same institution you do the rest of your banking with, so you can easily transfer funds from checking to savings (or vice versa).
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