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

Choosing the best high-yield savings account requires comparing interest rates, fees, and account features. Look for accounts offering APYs up to 4.40 percent with FDIC insurance, no monthly maintenance fees and convenient digital features like mobile check deposit and automatic transfers.

The key is finding an account that combines competitive earnings with easy access to your money when you need it.

Look for above-average APYs

The primary advantage of high-yield savings accounts is earning significantly higher interest on your deposits. While the average savings account pays 0.6, the best high-yield accounts offer rates above 4.00% APY.

This difference can translate to hundreds more in interest annually. For a $10,000 balance, earning 4.50% APY generates $450 in interest per year versus just $50 with a 0.50% account. That extra $400 could cover a few months of groceries or contribute meaningfully to your financial goals.

“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

Online banks typically offer the highest rates because they have lower overhead costs than traditional brick-and-mortar institutions. These savings get passed along to customers in the form of higher yields.

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.

Compare account features for convenience

Beyond the interest rate, account features can significantly impact your banking experience. Consider how easily you can manage your money and access the tools you need for everyday banking.

Here are a few things to consider:

• Essential digital features: Modern high-yield savings accounts should offer a robust online and mobile banking platform. Look for features like mobile check deposit, which lets you deposit checks by taking photos with your phone, and automatic transfer options to move money between accounts seamlessly.
• Customer service: Consider how you prefer to get help when you need it. Some banks offer 24/7 phone support, while others provide live chat features or comprehensive online help centers. If you value in-person service, check whether the bank has branch locations in your area or partners with ATM networks.
• Account management: Look for banks that offer useful features like savings goal tracking, spending categorization or the ability to create multiple savings “buckets” for different goals within one account. Here’s a list of accounts that come with built-in budgeting tools.
• Payment and transfer options: Check what options you have for moving money. Can you easily transfer funds to external accounts? Does the bank support services like Zelle for sending money to friends and family? How quickly do transfers process?

Related: Best mobile banking apps and features

Make sure the account has FDIC insurance

Federal deposit insurance is non-negotiable when choosing any bank account. Choose a high-yield savings account from a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA).

These federal agencies protect your deposits up to $250,000 per depositor, per institution, in the event of a bank failure. This insurance gives you peace of mind that your money is safe, regardless of what happens to the financial institution.

You can verify a bank’s FDIC insurance status by checking the FDIC’s online database or looking for the FDIC logo on the bank’s website. For credit unions, check the NCUA’s database to confirm insurance coverage.

Find an account that’s convenient

Account fees can quickly erode your interest earnings, so pay close attention to the fee structure of any account you’re considering. Many high-yield savings accounts have no monthly maintenance fees and minimal other charges, but it’s important to verify this before opening an account.

Common account fees to watch for:

• Monthly maintenance fees: Often waived with minimum balance requirements
• Minimum balance fees: Charged when your account falls below a certain threshold
• Excess withdrawal fees: Applied when you exceed transaction limits
• ATM fees: Charges for using out-of-network ATMs
• Paper statement fees: Many banks charge for mailed statements
• Account closure fees: Some banks charge if you close your account too soon

See the full list of bank fees (and tips to avoid them) here.

The best high-yield savings accounts typically have no monthly maintenance fees and low or no minimum balance requirements. Others may waive fees if you maintain a certain balance or link a checking account.

Also note minimum opening deposit requirements. Some accounts have no minimum to get started, while others ask for $50, $100 or more. If an account requires more than you’re comfortable depositing initially, continue looking for better options.

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.

Understand withdrawal limits

Federal Regulation D traditionally limited savings account holders to six “convenient” withdrawals or transfers per month, including online transfers, checks, and debit card transactions. While this limit was suspended in 2020 due to the COVID-19 pandemic, some banks still restrict the number of withdrawals on savings accounts.

Understanding these restrictions is important, especially if you plan to access your savings frequently. Some banks may charge excess withdrawal fees or convert your account to a checking account if you exceed their transaction limits.

Check the specific terms for any account you’re considering. Banks typically allow unlimited in-person withdrawals and ATM transactions, but may limit electronic transfers and other “convenient” transactions.

Bottom line

Choosing the right high-yield savings account involves balancing competitive rates with the features and convenience you need. Start by comparing APYs among FDIC-insured institutions, then evaluate fees, digital features and accessibility.

Once you’ve chosen your account, maximize its benefits by setting up automatic transfers to build savings consistently, naming your account based on your goal to stay motivated, and reviewing your account periodically to ensure you’re still earning a competitive rate.

Consider opening multiple high-yield savings accounts for different goals — one for emergencies, another for vacation savings and perhaps a third for a home down payment. This approach helps you track progress toward specific objectives and resist the temptation to dip into funds earmarked for other purposes.

Review your account’s performance every six months to ensure you’re still earning a competitive rate. If your bank has lowered rates significantly below market averages, don’t hesitate to shop around for better options.

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