Are high-yield savings accounts safe?

High-yield savings accounts are safe if they’re offered at an FDIC-insured bank or a National Credit Union Administration (NCUA) credit union and within federal insurance limits and guidelines.

How much interest can I earn on $10,000 after a year in a high-yield savings account?

If you had $10,000 in a savings account that earns 4.50 percent APY, you can earn around $459 in interest in a year (if interest is compounded monthly). But savings APYs are generally variable, so you'd only earn $459 if the APY stayed the same for the whole time.

What should I do if I am unable to open a high-yield savings account?

If you’re unsuccessful in opening a new account, you can ask the bank why this happened. Depending on the answer, you might want to go to ChexSystems’ website and request a report to see whether your banking history is the reason you were denied the account. ChexSystems is a national specialty consumer reporting agency that keeps track of some of your banking history. Things that can appear on a ChexSystems report include your check-cashing history, any suspected fraudulent activity and a list of closed accounts.

How often do savings rates change?

Competitive banks and credit unions have a tendency to adjust their interest rates based on the Federal Reserve’s rate moves. Unlike CD rates, which are locked for a set term, savings account yields tend to be variable, which means they could change at any time. A bank may decide to lower or raise savings account APYs for various reasons. It may increase its rate as part of a promotion to attract more deposits, or it may adjust rates in response to broader economic factors, such as changes to monetary policy by the Federal Reserve.

How often can I take money out of a high-yield savings account?

Many banks limit the number of times you can withdraw money from a savings account. Check with your bank to see its policy so that you’re not charged an excessive transfer fee. A bank could even close your account for excessive transactions.Checking accounts are meant to have frequent withdrawals for spending money and paying bills. But savings accounts are generally meant for accumulating money, those accounts are generally liquid.

Do I pay taxes on interest earned in a high-yield savings account?

The IRS specifically says that interest earned on bank accounts is taxable interest. Interest is usually taxed as ordinary income. All interest income is taxable, even if it’s not reported on a Form 1099-INT. That form is usually generated toward the beginning of the calendar year, after you’ve earned more than $10 in interest during the previous tax year.

Why are most high-yield savings accounts online?

The best high-interest savings accounts are usually found online. The best online banks tend to offer the most competitive yields on their accounts. One reason why these banks can pay more is that they have fewer expenses since they don’t operate branches. But these online banks also need a way to get your attention. Often, a high yield is the way to do that. Many online banks also don’t charge a monthly service fee for their accounts, and some of them don’t have minimum balance or minimum opening deposit requirements either.

Best High-Yield Savings Accounts Of May 2025 - Up to 4.45%

Best high-yield savings accounts for May 2025

Note: APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its editorial listings.

Read review

Openbank

4.5 Bankrate savings score

Annual percentage yield

4.40%
Min. balance for APY

$500
Min. deposit to open

$500

Why Openbank?

Openbank is a new digital subsidiary of Santander Bank. Openbank offers just one account — an FDIC-insured savings account that has a top-notch annual percentage yield (APY). There are no monthly fees, which is typical of online banks, but there is a minimum deposit requirement of $500.

Pros

Openbank’s savings account offers a competitive yield.
There is no monthly maintenance fee.
Cons

The minimum deposit of $500 is on the higher side compared to other online savings accounts.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Openbank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Openbank APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
04/15/2025	4.40%	0.59%
03/05/2025	4.40%	0.60%
01/14/2025	4.75%	0.56%
12/17/2024	4.75%	0.57%
11/12/2024	5.00%	0.57%
10/01/2024	5.25%	0.57%

Read review

BrioDirect

4.9 Bankrate savings score

Annual percentage yield

4.35%
Min. balance for APY

$25
Min. deposit to open

$5,000

Why BrioDirect?

BrioDirect's High-Yield Savings account offers a competitive yield, but it requires a steep minimum deposit of $5,000 to open. After you open the account, you can keep less money in it if you want, but you'll need at least $25 to earn the advertised APY. Note that BrioDirect doesn't offer any other accounts.

Pros

BrioDirect offers a competitive yield on its High-Yield Savings account.
There is no monthly maintenance fee for this account.
Cons

You need to keep at least $25 in the account to earn the APY.
Steep minimum of need at least $5,000 to open this account.
Your account may be closed if it doesn’t have money in it for 21 or more days.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

BrioDirect

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	BrioDirect APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
05/05/2025	4.35%	0.59%
04/15/2025	4.45%	0.59%
04/01/2025	4.50%	0.59%
03/11/2025	4.50%	0.60%
03/04/2025	4.55%	0.60%
02/04/2025	4.55%	0.61%
01/28/2025	4.55%	0.56%
01/07/2025	4.75%	0.56%
12/24/2024	4.75%	0.57%
11/19/2024	4.85%	0.57%
10/29/2024	5.00%	0.57%
10/15/2024	5.05%	0.57%
10/01/2024	5.15%	0.57%
09/24/2024	5.15%	0.61%
09/03/2024	5.30%	0.61%
06/04/2024	5.30%	0.59%
05/21/2024	5.35%	0.59%

Read review

EverBank

5.0 Bankrate savings score

Annual percentage yield

4.30%
Min. balance for APY

$0
Min. deposit to open

$0

Why EverBank?

The EverBank Performance℠ Savings account earns a competitive rate. There’s no minimum deposit required to open the account or any minimum to earn the APY. If you'd like to keep your savings account in the same place as your checking, EverBank could be right for you. In addition to a good savings account, EverBank also has a high-yielding money market account, a checking account that earns some interest and CDs that earn good rates.

Pros

The Performance℠ Savings account has a high yield on all balances.
There’s no monthly maintenance fee.
No minimum opening balance requirement.
Cons

Customer service hours are limited on weekends, with no availability on Sundays.
Switching from an account earning a nominal yield, a Bankrate staff member opened an EverBank Performance Savings account for its stellar annual percentage yield (APY) and lack of fees. “We have a big chunk of money in savings because we hope to buy a house once mortgage rates drop,” said the staff member. “But we want that money to be earning money for us, instead of sitting there losing value due to inflation.”

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

EverBank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	EverBank APY APY last updated 5/9/2025. APY last updated 5/9/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
04/04/2025	4.30%	0.59%
03/14/2025	4.30%	0.60%
01/17/2025	4.30%	0.56%
01/07/2025	4.40%	0.56%
12/20/2024	4.40%	0.57%
11/07/2024	4.75%	0.57%
10/01/2024	5.05%	0.57%
09/03/2024	5.05%	0.61%
05/31/2024	5.05%	0.59%

Read review

Bread Savings

4.9 Bankrate savings score

Annual percentage yield

4.30%
Min. balance for APY

$0
Min. deposit to open

$100

Why Bread Savings?

Bread Savings is an online bank that offers a high-yield savings account and nine terms of CDs. The CDs also have competitive yields. Bread Savings requires at least $100 to open this savings account. There's also no monthly fee to have this account.

Pros

Bread Savings pays very competitive yields on its savings account.
With just $100 needed to open an account and no monthly maintenance fees, savers of all types may find it to be an appealing option.
Cons

A paper statement will cost you $5 per request at Bread Savings.
The bank also charges $25 to send a wire transfer.
A Bankrate staff member reported that opening a Bread Savings account was easy, taking them less than 10 minutes. The main reason for opening the account was the high annual percentage yield (APY) and no fees for withdrawals. While making their initial deposit while opening the account was easy, the staff member reported making additional deposits was difficult, requiring them to log into various bank accounts multiple times.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Bread Savings

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Bread Savings APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
05/13/2025	4.30%	0.59%
04/29/2025	4.35%	0.59%
04/01/2025	4.40%	0.59%
02/03/2025	4.40%	0.61%
01/02/2025	4.50%	0.56%
11/27/2024	4.65%	0.57%
10/15/2024	4.75%	0.57%
09/16/2024	5.10%	0.61%
07/22/2024	5.15%	0.59%

Read review

Rising Bank

4.7 Bankrate savings score

Annual percentage yield

4.30%
Min. balance for APY

$1,000
Min. deposit to open

$1,000

Why Rising Bank?

The Rising Bank High Yield Savings Account offers a competitive interest rate but a relatively high minimum opening deposit of $1,000. You'll also need to keep at least $1,000 in the account to earn the APY. There's no monthly service fee for this account. In addition to a savings account, you can also open a checking account and CDs at Rising Bank, a few of which have highly competitive yields.

Pros

Rising Bank’s Savings account earns more than the national average APY.
The savings account doesn’t charge monthly maintenance fees.
Cons

There’s a fee for closing the account within 120 days.
You'll need at least $1,000 to open the account and earn the APY.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Rising Bank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Rising Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
04/15/2025	4.30%	0.59%
04/01/2025	4.40%	0.59%
03/04/2025	4.40%	0.60%
02/04/2025	4.40%	0.61%
01/07/2025	4.40%	0.56%
10/01/2024	4.50%	0.57%
09/24/2024	4.50%	0.61%
09/17/2024	4.75%	0.61%
09/03/2024	4.90%	0.61%
07/30/2024	4.90%	0.59%
05/21/2024	5.00%	0.59%

Read review

TAB Bank

4.9 Bankrate savings score

Annual percentage yield

4.26%
Min. balance for APY

$0
Min. deposit to open

$0

Why TAB Bank?

The TAB Save account is a high-yield savings account that offers a competitive interest rate. There are no monthly maintenance fees or minimum balance requirements. And you’ll earn the same high rate for all the money in your account. And if you're interested on earning high yields on more of your money, TAB Bank also offers a high-yield checking account and competitive CDs.

Pros

TAB Save has no monthly service fees or minimum balance requirements.
TAB features competitive APYs across many of its deposit products, including its TAB Save account.
Cons

Customer service hours are limited on weekends, with no customer service on Sundays.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

TAB Bank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	TAB Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
04/01/2025	4.26%	0.59%
03/04/2025	4.26%	0.60%
02/04/2025	4.26%	0.61%
01/07/2025	4.26%	0.56%
12/10/2024	4.37%	0.57%
10/08/2024	4.52%	0.57%
10/01/2024	5.02%	0.57%
09/03/2024	5.02%	0.61%
07/23/2024	5.02%	0.59%
05/21/2024	5.27%	0.59%

Read review

Forbright Bank

4.9 Bankrate savings score

Annual percentage yield

4.25%
Min. balance for APY

$0
Min. deposit to open

$0

Why Forbright Bank?

Forbright Bank has high yields on its deposit products, but its Growth Savings account stands out in particular and offers competitive yields on any balance. The account can be opened online, and there’s no minimum opening deposit requirement. Forbright Bank was named the best eco-friendly bank in the 2025 Bankrate Awards for its commitment financing environmentally-friendly initiatives. If you're interested in doing more of your banking at this eco-friendly bank, you can also open one of its Growth CDs online but to get a checking account, you'll have to visit a branch, most of which are located in Maryland.

Pros

Forbright’s Growth Savings account offers a highly competitive yield.
There’s no minimum opening deposit requirement.
Cons

In line with its eco-friendly initiatives, Forbright does not offer the option to receive paper statements.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Forbright Bank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Forbright Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
04/01/2025	4.25%	0.59%
03/04/2025	4.25%	0.60%
02/04/2025	4.25%	0.61%
01/09/2025	4.25%	0.56%
01/06/2025	4.60%	0.56%
11/19/2024	4.60%	0.57%
10/01/2024	5.00%	0.57%
09/03/2024	5.30%	0.61%
05/22/2024	5.30%	0.59%
05/21/2024	5.15%	0.59%

Read review

Bask Bank

5.0 Bankrate savings score

Annual percentage yield

4.20%
Min. balance for APY

$0
Min. deposit to open

$0

Why Bask Bank?

Bask Bank’s Interest Savings account offers a highly competitive yield, doesn’t require a minimum opening deposit and doesn't charge a monthly fee. If you want to do more of your banking in one place, Bask Bank might be a good option for you. It also offers a checking account that earns a competitive interest rate and CDs ranging from three months to two years that all earn strong rates.

Pros

Bask Bank offers a strong yield on its Interest Savings Account.
There is no minimum balance requirement or a monthly service fee.
Cons

You’ll need to fund your Bask Bank Interest Savings Account within 15 days of opening it; otherwise, the account could be closed.
A Bankrate staff member reported an overall positive experience with Bask Bank. They were drawn to the high yield, and opening an account took just about 10 minutes. Since opening the account, the Bankrate staff member has been able to easily check in on their annual percentage yield (APY) from time to time.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Bask Bank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Bask Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
04/22/2025	4.20%	0.59%

Read review

CIBC Bank USA

4.9 Bankrate savings score

Annual percentage yield

4.11%
Min. balance for APY

$1
Min. deposit to open

$1,000

Why CIBC Bank USA?

CIBC Bank USA is known for offering a competitive yield on its CIBC Agility High-Interest Savings Account, which charges no monthly service fee. You'll need $1,000 to open this account, which is steeper than some accounts on this list. CIBC also offers online Agility CDs, some of which earn competitive yields. While you can open Agility savings and CDs online, you'll have to visit a branch to open some other accounts at this bank.

Pros

The CIBC Bank USA Agility High-Interest Savings Account offers a competitive yield.
The account doesn’t have a monthly service fee.
You earn the high rate on all balances above $0.01.
Cons

Minimum opening deposit of $1,000 is higher than what you'll find at many other online banks.
You won’t be able to make external transfers via CIBC NetBanking during the first 30 days that you have the account.
A Bankrate staff member reported an overall positive experience with CIBC. One bright spot is the high APY for the Agility Savings account. Our staffer also notes the CIBC website’s ease of use when it comes to basic banking. Customers can view account snapshots, make transfers and pay bills. In addition, CIBC offers a user-friendly app that displays menus of all options at the top and bottom of the main screen.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

CIBC Bank USA

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	CIBC Bank USA APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
05/12/2025	4.11%	0.59%
04/01/2025	4.21%	0.59%
03/31/2025	4.21%	0.60%
03/04/2025	4.28%	0.60%
02/04/2025	4.28%	0.61%
01/31/2025	4.28%	0.56%
01/07/2025	4.38%	0.56%
12/20/2024	4.38%	0.57%
11/25/2024	4.51%	0.57%
10/01/2024	4.61%	0.57%
09/23/2024	4.61%	0.61%
09/03/2024	5.01%	0.61%
05/21/2024	5.01%	0.59%

Read review

Live Oak Bank

4.9 Bankrate savings score

Annual percentage yield

4.10%
Min. balance for APY

$0
Min. deposit to open

$0

Why Live Oak Bank?

The Live Oak Bank Personal Savings Account has an attractive interest rate that applies to all balances starting from just $0.01. Like many of the other accounts on this list, Live Oak Bank’s savings account is ideal for those comfortable managing their finances online, as Live Oak Bank operates fully online and doesn’t have branches. It also doesn't offer a checking account, though it does have nine terms of CDs, some of which earn competitive yields.

Pros

The savings account doesn’t charge any monthly maintenance fees.
You earn a high yield on all balances.
Cons

Should you want to close your account properly, you’ll need to call customer service on the phone.
No weekend customer service; if you need help, you’ll need to reach a representative from 8 am to 9 pm Monday through Friday Eastern.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Live Oak Bank

APY

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Live Oak Bank APY APY last updated 5/13/2025. APY last updated 5/13/2025	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
05/06/2025	4.10%	0.59%
04/01/2025	4.20%	0.59%
03/04/2025	4.20%	0.60%
02/04/2025	4.20%	0.61%
02/03/2025	3.60%	0.61%
01/07/2025	4.20%	0.56%
12/09/2024	4.20%	0.57%
10/08/2024	4.30%	0.57%
10/01/2024	4.40%	0.57%
09/03/2024	4.40%	0.61%
05/21/2024	4.40%	0.59%

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than 100 of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the best options.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Recent news on high-yield savings account rates

The Federal Reserve held rates steady during its May 6-7 meeting, for the third meeting in a row. The federal funds rate continues to rest at a range of 4.25-4.50 percent.

The lack of rate movement in 2025 comes after three rate cuts in late 2024.

For now, the best high-yield savings accounts are continuing to offer rates above 4 percent APY. And these rates are still outpacing the annual rate of inflation, which is 2.4 percent as of March, according to the latest Consumer Price Index (CPI) reading.

All that is to say, now remains a good time to take advantage of high yields on savings. And it’s not hard to find a high-yielding savings account, especially at an online-only bank. These banks also typically don’t require a set minimum balance or charge monthly service fees.

The Federal Reserve, as expected, has maintained the current policy rates flat at 4.25-4.50 percent. Over the past week, the odds of a June cut have fallen to only 30% as new data on the economy was released. The Fed has been clear that it is focused on inflation as the more important issue, even as the labor market slowly cools. The upcoming releases of the consumer price index and personal consumption expenses later this month will be critical for determining the right path for possible interest rate changes in June or July.
Stephen Kates, CFP®, Bankrate financial analyst

BANKRATE EXPERT FAQ

What our industry experts are saying

Andrew Herzog

CFP at The Watchman Group

High-yield savings accounts are a great addition to any portfolio, especially in light of recent market dynamics. Equities whipsawing, bonds swinging back and forth, HYSAs remain stable. For short-term cash needs, a HYSA functions as a great volatility dampener, while earning some easy interest. While the interest rate could change any day with a Federal Reserve decision, the account balance will not swing violently. If you want some stability, consider a HYSA.

Learn more: Bankrate's 2025 savings rates forecast

How to choose an online high-yield savings account

The top three factors to look for when choosing a high-yield savings account are:

You want to earn a competitive APY on your money. And in 2025 the rates on many high-yield savings accounts are outpacing the rate of inflation.
It pays to find an account that won't charge service fees that can eat into your savings.
Being able to withdraw your money easily is important, especially in an emergency. Ways you can take out money may include visiting an ATM or using Zelle to transfer money to another account.

What to know about high-yield savings accounts

High-yield savings accounts typically pay a much greater APY than traditional savings accounts, providing savers the ability to earn more on their money while still enjoying the security of a federally insured account. Traditional savings accounts are commonly offered at brick-and-mortar banks and larger banks. These accounts may yield close to nothing, often around 0.01 percent APY. High-yield savings accounts often earn APYs that are significantly higher.

Most high-yield savings accounts have a variable APY, which means the yield is subject to change at the bank's discretion. Consumers looking for a guaranteed yield should consider a certificate of deposit (CD), and a no-penalty CD might be a good option for those who prefer both a fixed APY and access to their money without incurring a penalty.

Savings accounts usually earn compound interest, which means you’ll earn interest on interest. In other words, you earn interest on your principal deposit, as well as the interest that accumulates over time.

Learn more: How small savings can add up to big money

Below are a few important features to consider when searching for a high-yield savings account. When choosing which account is right for you, also take a look at Bankrate’s expert reviews of popular banks, many of which offer high-interest savings accounts.

Annual percentage yield (APY): APY incorporates the effect of compounding. Simply stated, compound interest is the interest you earn on interest. Essentially, you'll earn interest on your initial deposit as well as on the interest that accumulates over time.
Minimum opening deposit required: The amount you’ll need to open your account.
Minimum balance required: The balance you’ll need to keep in your account to avoid a monthly service fee.
Monthly maintenance fees: The fee you’ll incur if your balance falls below the minimum balance requirement in your account.

Learn more: What is a high-yield savings account?

Who should get an online high-yield savings account?

A high-yield savings account is a good choice for anyone who wants to earn a competitive yield on their savings account to boost their savings potential.

A good time to get a savings account is when:

You’re not earning any interest – or you’re earning a low APY – in your current bank account.
You don’t have an emergency fund, or you have your emergency fund commingled with your checking account.

High-yield savings accounts can be a good choice for nearly anyone because they don’t often require any minimum opening deposit, may not require any ongoing minimum balance, and you can find accounts that do not charge monthly service fees. Anyone can benefit from a high-yield savings account, regardless of their stage of life and their money-related goals. Here are a few examples:

Future homebuyers

A high-yield savings account is a great way to ensure your down payment money will grow until you need it to buy a house, condo or apartment. And unlike most CDs, you can add to your balance at any time.

Jetsetters and road-trippers

A good strategy when saving for your next vacation is to determine how much you’ll need for the trip and then open a dedicated savings account for it. Consider automating your savings to keep your savings goals on track. This consists of setting up recurring transfers from your checking to your savings account.

Soon-to-be married couples

A high-yield savings account allows you to earn a competitive yield on your balance as you save for your wedding. You can keep adding to this account all the way up until you say “I do.” Having a separate account devoted to wedding savings can help you monitor your progress more easily, which helps you meet your savings goals for the big day.

How to open a savings account

Before you dump your money into an account at your local bank, there are several steps you should take.

Learn more

Pros and cons of high-yield savings accounts

Savings accounts are a good place to set aside funds for many financial goals. Here are the pros and cons of online high-yield savings accounts, so you can make sure one is right for you.

Pros

Online high-yield savings accounts typically pay a much higher APY than traditional savings accounts.
Many high-yield savings accounts come with digital tools that allow you to manage your savings easily through your computer, smartphone or tablet.
High-yield savings accounts at most banks and credit unions are insured by the federal government, meaning your money is safe.
Unlike with a CD, funds in a high-yield savings account are easily accessible.

Cons

Rates for high-yield savings accounts are variable and could fall.
Some banks restrict withdrawals/transfers to only six a month.
Checks generally can’t be written using savings accounts.
Your money could get higher returns if you invest your money (but you’ll be opening yourself up to more risk).
Many online banks don't offer branch or ATM access.

Alternatives to high-yield savings accounts

CDs

These generally earn a fixed APY for a certain period of time.

Money market accounts

A savings deposit account that typically offers check-writing privileges.

Checking accounts

Accounts for your daily transactions.

Investments

These may offer higher returns, but have risk associated with them.

High-yield savings FAQs

High-yield savings accounts are safe if they’re offered at an FDIC-insured bank or a National Credit Union Administration (NCUA) credit union and within federal insurance limits and guidelines.
If you had $10,000 in a savings account that earns 4.50 percent APY, you can earn around $459 in interest in a year (if interest is compounded monthly). But savings APYs are generally variable, so you'd only earn $459 if the APY stayed the same for the whole time.
If you’re unsuccessful in opening a new account, you can ask the bank why this happened. Depending on the answer, you might want to go to ChexSystems’ website and request a report to see whether your banking history is the reason you were denied the account.

ChexSystems is a national specialty consumer reporting agency that keeps track of some of your banking history. Things that can appear on a ChexSystems report include your check-cashing history, any suspected fraudulent activity and a list of closed accounts.
Competitive banks and credit unions have a tendency to adjust their interest rates based on the Federal Reserve’s rate moves.

Unlike CD rates, which are locked for a set term, savings account yields tend to be variable, which means they could change at any time.

A bank may decide to lower or raise savings account APYs for various reasons. It may increase its rate as part of a promotion to attract more deposits, or it may adjust rates in response to broader economic factors, such as changes to monetary policy by the Federal Reserve.
Many banks limit the number of times you can withdraw money from a savings account. Check with your bank to see its policy so that you’re not charged an excessive transfer fee. A bank could even close your account for excessive transactions.
Checking accounts are meant to have frequent withdrawals for spending money and paying bills. But savings accounts are generally meant for accumulating money, those accounts are generally liquid.
The IRS specifically says that interest earned on bank accounts is taxable interest. Interest is usually taxed as ordinary income. All interest income is taxable, even if it’s not reported on a Form 1099-INT. That form is usually generated toward the beginning of the calendar year, after you’ve earned more than $10 in interest during the previous tax year.
The best high-interest savings accounts are usually found online. The best online banks tend to offer the most competitive yields on their accounts. One reason why these banks can pay more is that they have fewer expenses since they don’t operate branches.

But these online banks also need a way to get your attention. Often, a high yield is the way to do that. Many online banks also don’t charge a monthly service fee for their accounts, and some of them don’t have minimum balance or minimum opening deposit requirements either.

Meet our Bankrate experts

Written by: Matthew Goldberg, Senior Consumer Banking Reporter

Matthew is a senior consumer banking reporter with more than two decades of journalism and financial services expertise, helping readers make informed decisions about their personal finance needs. His banking career includes being a banker in New York City and a bank officer at one of the nation's largest banks. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), chairing its training member engagement committee and is co-chair of its Finance Committee.

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best high-yield savings accounts, we rated these institutions on their savings account’s APYs, monthly fees, minimum deposit requirements, access to funds and more.

The highest-rated savings accounts from broadly-available banks and credit unions, that also had the highest APYs, made our list. Learn more about how we choose the best banking products and our methodology for reviewing banks.

Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank

Best high-yield savings accounts of May 2025 (Up to 4.40%)

Best high-yield savings accounts for May 2025

Openbank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Openbank?

Pros and cons

Rate history for Openbank's savings account

BrioDirect

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why BrioDirect?

Pros and cons

Rate history for BrioDirect's savings account

EverBank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why EverBank?

Pros and cons

Our experience with EverBank's savings account

Rate history for EverBank's savings account

Bread Savings

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Bread Savings?

Pros and cons

Our experience with Bread Savings's savings account

Rate history for Bread Savings's savings account

Rising Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Rising Bank?

Pros and cons

Rate history for Rising Bank's savings account

TAB Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why TAB Bank?

Pros and cons

Rate history for TAB Bank's savings account

Forbright Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Forbright Bank?

Pros and cons

Rate history for Forbright Bank's savings account

Bask Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Bask Bank?

Pros and cons

Our experience with Bask Bank's savings account

Rate history for Bask Bank's savings account

CIBC Bank USA

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why CIBC Bank USA?

Pros and cons

Our experience with CIBC Bank USA's savings account

Rate history for CIBC Bank USA's savings account

Live Oak Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Live Oak Bank?

Pros and cons

Rate history for Live Oak Bank's savings account

Bankrate's expertise

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