If you want to grow your money without risking it in the stock market, high-yield savings accounts (HYSAs) are an excellent choice. These accounts offer significantly higher interest rates than traditional savings accounts, helping you maximize your savings effortlessly.
With some banks offering up to 4.86% APY, you don’t want to miss out on this opportunity to boost your finances. In this guide, we’ll break down everything you need to know about high-yield savings accounts, how they work, and how to pick the best one for you.
What is a High-Yield Savings Account (HYSA)?
A high-yield savings account is a type of savings account that offers a higher annual percentage yield (APY) compared to traditional savings accounts. While a standard savings account from a brick-and-mortar bank may offer 0.01% APY, an HYSA can offer 4.00% APY or more, allowing your money to grow faster.
How Do HYSAs Work?
- You deposit money into the account.
- The bank pays you interest based on the APY.
- Interest is typically compounded daily or monthly and credited to your account.
- You can access your funds anytime, though some accounts limit withdrawals.
Best High-Yield Savings Accounts in 2025
If you’re looking for the best high-yield savings accounts, here are some of the top options:
1. Marcus by Goldman Sachs
- APY: 4.40%
- Minimum Deposit: None
- FDIC Insured: Yes
- Key Benefit: No monthly fees
- Visit Marcus
2. Ally Bank
- APY: 4.35%
- Minimum Deposit: None
- FDIC Insured: Yes
- Key Benefit: User-friendly mobile app
- Visit Ally Bank
3. Discover Online Savings
- APY: 4.30%
- Minimum Deposit: None
- FDIC Insured: Yes
- Key Benefit: No hidden fees
- Visit Discover
4. CIT Bank Savings Connect
- APY: 4.65%
- Minimum Deposit: $100
- FDIC Insured: Yes
- Key Benefit: High APY
- Visit CIT Bank
5. SoFi Savings Account
- APY: 4.86% (with direct deposit)
- Minimum Deposit: None
- FDIC Insured: Yes
- Key Benefit: Hybrid checking and savings
- Visit SoFi
How to Choose the Best High-Yield Savings Account
1. Compare APYs
Always look for the highest APY available, but be sure to check if the rate is introductory or permanent.
2. Check Fees
Avoid accounts with monthly maintenance fees, which can eat into your earnings.
3. Ensure FDIC or NCUA Insurance
Make sure the bank is FDIC-insured (or NCUA-insured for credit unions) to protect your deposits up to $250,000.
4. Consider Withdrawal Restrictions
Some accounts limit withdrawals to six per month, so make sure the policy fits your needs.
5. Look for Easy Access
A good HYSA should have a mobile app, online banking, and easy fund transfers.
Earn More on Your Savings (FAQs)
1. Are high-yield savings accounts safe?
Yes, as long as they are FDIC-insured (or NCUA-insured for credit unions), your money is protected up to $250,000 per depositor.
2. Can I lose money in a high-yield savings account?
No, HYSAs are not affected by market fluctuations, so your money is safe and continues to earn interest.
3. How often is interest paid on a high-yield savings account?
Interest is typically compounded daily or monthly and paid out monthly.
4. Is there a downside to a high-yield savings account?
Some accounts limit withdrawals to six per month, and the APY may decrease if interest rates drop.
