A savings account is a basic type of bank deposit account where you can safely store your money while it (ideally) grows with interest over time.
Think of a high-yield savings account as a traditional savings account on steroids, earning interest at a significantly faster rate.
Below, we’ll explore the typical attributes of the best high-yield savings accounts (HYSAs), how interest is calculated, pros and cons of HYSAs, and why everyone who can open one should open one.
- Up to $400 Bonus Tiered Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/
- APY disclosures
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
- Fee Policy
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
- Additional FDIC Insurance
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
- ATM Access
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.
- Early Access to Direct Deposit Funds
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
- Overdraft Coverage
Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
- 0.70% Savings APY Boost
Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 12/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
- Earn up to 3.80% APY8
- Limited Time Offer – New accounts earn a 0.70% APY boost to 3.80% for up to 6 months with eligible direct deposit8
- $0 minimum balance to earn APY
- Earn $50 or $400 when you sign up and set up eligible direct deposit1
- Open Checking & Savings Accts with 1 Sign Up
- Up to 2-Day-Early Paycheck3
- FDIC Insured up to $250k plus up to $3M in supplemental insurance4
Barclays Tiered Savings Annual Percentage Yields (APYs) are accurate as of 06/16/2026. Rates may change at any time without prior notice, before or after the account is opened. The same rate may apply to multiple Tiers and Tiers may change without notice. APY earned is based on the Tier in which your end of day account balance falls. Please see Barclays Tiered Savings for current Tier and APY information.
- Earn 3.75% APY* with Barclays1 Tiered Savings
- $0 min. balance to earn APY
- No monthly maintenance fees
- Easy direct deposits & online transfers
- Deposits are FDIC Insured
ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 6/16/2026.
APYs are subject to change at any time without notice. Offers apply to personal non-IRA accounts only. Charges for specific services may reduce earnings. For High Yield Savings Accounts, the rate may change after the account is opened. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time. See all non-IRA CD rates and terms offered here.
NATIONAL AVERAGE: National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Curinos LLC through 05/01/2026. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Curinos data is obtained from public sources; accuracy and completeness is not guaranteed. Curinos is not liable for reliance on the data.
FDIC INSURANCE: up to $250,000 per depositor, per insured bank, for each ownership category.
- Earn up to 3.30% APY*
- Open a High Yield Savings Account without a minimum deposit
- Competitive rates, no required minimum balances, and no monthly fees
- The Synchrony app makes it a snap to bank anywhere
- Member FDIC
Advertised annual percentage yield (APY) is for new accounts only and is accurate as of June 16, 2026. APY tiers apply to the following balances:
- 4.01% APY on balances of $0.01 – $999.99
- 4.01% APY on balances of $1,000.00 – $49,999.99
- 4.01% APY on balances of $50,000.00 – $499,999.99
- 3.14% APY on balances of $500,000.00 – $999,999.99
- 3.14% APY on balances of $1,000,000.00 & Above
This is a variable-rate account, and APY is subject to change at any time without notice. Limit of one Envision High Yield Savings account per customer. Minimum amount to open is $100, with opening funds subject to a 5-business day hold. Fees may reduce earnings on account.
- Earn up to 4.01% APY
- No monthly maintenance fees
- Open an account with as little as $100
- Open an account in as little as 5 minutes
- Backed by the financial strength of Idaho First Bank
Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of January 9, 2026: 0.25% APY on balances of $0.01 to $4,999.99; 3.75% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
Platinum Savings APY Boost Promotion Terms and Conditions
This is a limited time offer available to New and Existing customers who meet the Platinum Savings APY Boost promotion criteria.
Accounts enrolled in the Platinum Savings Annual Percentage Yield (APY) Boost promotion will receive a 0.35% APY boost on the Platinum Savings current standard APY tiers for 6 months following the opening of a new account or when an existing Platinum Savings account is enrolled in the promotion. The Platinum Savings APY boost will be applied on account balances up to $9,999,999.00. Account balances above $9,999,999.00 will earn the standard APY. If the standard-published APY should change during the promotion period, the APY boost will move with it, offering an account APY above the standard rate.
The Promotion begins on February 13, 2026, and ends June 30, 2026. Customers enrolled in the promotion prior to the end date will receive the APY boost for the 6-month period outlined in the terms and conditions.
The promotion can end at any time without notice.
New CIT Bank Customers: This Platinum Savings APY Boost promotion offer is valid for New CIT Bank customers, who, at account opening, do not have a valid CIT Bank User ID (a “New Customer”) or any open CIT Bank accounts provided that the following requirements are met:
New customers must open a Platinum Savings account with a valid Promo Code, CITBoost. The Platinum Savings APY Boost Promo Code will appear on the online account opening enrollment web page.. The Promo Code must be used at the time of account opening. Accounts opened during the program period without the Promo Code are ineligible to receive the APY boost.
The enrolled Platinum Savings account must be open to receive the APY boost during the promotional period.
CIT Bank Customers with an account prior to the promotion: This Platinum Savings APY Boost promotion is valid for a Primary account owner with an existing account with a CIT Bank User ID before the start of the promotion, provided that the following requirements are met:
Customers without a Platinum Savings account open prior to the Promotion must open a new Platinum Savings account via the enrollment web page using Promo Code CITBoost.
Customers with a Platinum Savings account opened prior to the promotion may enroll their current Platinum Savings account into the Platinum Savings Boost promotion via the enrollment web page using Promo Code CITBoost.
Customers who are not the Primary account owner on a Platinum Savings account may open a new Platinum Savings account as the primary account owner via the enrollment web page using Promo Code CITBoost.
Accounts opened or enrolled during the program period without the Promo Code are ineligible to receive the APY boost.
There is a limit of one Platinum Savings APY Boost promotional offer per account and per Primary customer. If multiple Platinum Savings accounts are opened, only one account per primary account owner is eligible.
There is no minimum account balance requirement to participate in the Platinum Savings APY Boost promotion.
Additional Important Terms
The Platinum Savings APY Boost promotion may not be combined with other promotions.
Customers are ineligible to participate in the Platinum Savings APY Boost promotion if:
They are earning an APY over the standard rate.
They participated in a cash bonus promotion in the past 6 months.
Custodial accounts and accounts in the name of a Trust are not eligible.
This offer is non-transferable.
The value of Platinum Saving Boost will be reported as interest income on IRS Form 1099-INT for the calendar year in which it was paid. The recipient is responsible for any applicable taxes.
- Earn 4.10% APY* with CIT’s Savings Connect Account
- $100 minimum balance for APY
- No account opening or monthly service fees
- Deposit checks online with the CIT Bank mobile app
- FDIC Insured
What is a HYSA?
A high-yield savings account is a savings account that earns interest far faster than the national average rate. Typically offered by online banks, which have lower overhead and can thus afford to pay out higher savings rates (and charge lower or no fees), HYSAs are one of the best ways to grow your money safely and steadily.
Like traditional savings accounts, a HYSA is typically insured up to $250,000 either by the:
- Federal Deposit Insurance Corporation (FDIC) for banks
- National Credit Union Administration (NCUA) for credit unions
This amount can vary by bank. SoFi, for instance, insures deposits up to $2 million.
Though the return on HYSAs is generally lower than that of a diversified, balanced portfolio of stocks and bonds, HYSAs won’t lose money if the market turns.
Money in a high-yield savings account is also far more liquid than money invested in the market or real estate. Nowadays, you can usually transfer funds to a linked checking account with the same bank immediately and then spend that money with a debit card or check. You might even be able to withdraw cash from your HYSA at an ATM.
Choose a HYSA whose APY outpaces inflation. Otherwise, you’re actually losing money each year by letting your money sit in an account growing slower than inflation.
High-yield savings account vs. traditional savings account
The biggest difference between a high-yield savings account and a traditional savings account is the annual percentage rate (APY), essentially, the rate at which your account grows with interest.
The national average savings account rate is currently 0.40%, according to the FDIC, while high-yield savings accounts hover around 3.50%. Some of the biggest banks in the country, such as Wells Fargo and Chase, offer a measly 0.01% APY on savings deposits.
By comparison, Capital One, my top choice for a HYSA, currently pays out a 3.40% APY and has the highest online banking satisfaction of any bank in J.D. Power’s 2025 U.S. Online Banking Satisfaction Study.
A challenge with the J.D. Power ranking is that it’s missing some excellent institutions from the mix, such as Goldman Sachs’ Marcus and Mass Mutual’s Flourish Cash. These are high-quality and strong financial institutions.
Keep in mind that some less-than-stable financial institutions advertise high attracts to attract desperately needed deposits, which is not a good sign.
Banks and credit unions can and do raise and lower their rates over time. Regularly review what you’re earning with a HYSA, and if it drops to a percentage you deem too low, consider switching to another bank.
| Traditional savings accounts | HYSAs | |
| Account type | Deposit | Deposit |
| Account purpose | Saving money | Saving money |
| Interest rate* | 0.40% on average | 3.50% on average |
| Physical or online | Both | Primarily online |
| Insurance | Through FDIC or NCUA | Through FDIC or NCUA |
High-yield savings account vs. checking account
Checking accounts are designed for you to spend money. They’re also the best place to receive your paycheck or government benefits via direct deposit.
The best way to use a checking account is alongside a high-yield savings account. Only keep what you need in the checking account to cover monthly expenses, and move the rest to savings so it grows faster. (Checking accounts often don’t earn interest; if they do earn interest, it’s nominal. The rate is so low you aren’t likely to notice a difference.)
| Checking accounts | HYSAs | |
| Account type | Deposit | Deposit |
| Account purpose | Spending money | Saving money |
| Interest rate | 0.07% on average** | 3.50% on average |
| Physical or online | Both | Primarily online |
| Insurance | Through FDIC or NCUA | Through FDIC or NCUA |
**Interest rate average based on interest-bearing checking accounts only; many checking accounts do not earn interest at all.
How is interest calculated for a high-yield savings account?
When you deposit money in a high-yield savings account, it accrues interest over time. But how does the bank calculate that interest?
Let’s start with the simple interest formula. You can use this to calculate how much interest you earn on your initial deposit.
Simple interest = P x R x T
Where:
P = Principal amount (initial deposit)
R = Interest rate
T = Number of time periods (usually years)
For instance, if you deposited $1,000 in a high-yield savings account that paid 4.00% interest and let it sit for three years, you’d use the following formula:
Simple interest = $1,000 x 0.04 x 3
Simple interest = $120
At the end of three years, you’d have earned $120, for a total of $1,120. The problem with simple interest? Things are never really that simple.
Instead, interest in a savings account compounds, often daily, monthly, or quarterly. So once you’ve earned interest, you’ll start earning interest on that interest. That’s why banks advertise an annual percentage rate (APY) instead of interest rate.
These calculations can get a little more complex because:
- It depends on how often a specific bank compounds interest.
- You may make irregular deposits to or withdrawals from your savings account throughout the year that accelerate or slow growth.
- APYs will likely change at least once throughout the year.
Your best bet is to use a high-yield savings account calculator to understand how much money you could potentially earn from a specific bank account, but understand that things can and will change over time.
HYSA pros and cons
High-yield savings accounts offer major benefits (and I firmly believe everyone should take advantage of them), but there are some drawbacks to note as well.
Pros
-
Insured funds and low risk
HYSAs are generally insured up to $250,000. They’re also not subject to volatile changes like stocks and real estate investments.
-
Higher interest rates
The main draw of a high-yield savings account is that it earns much more interest than a traditional savings account.
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More liquidity than other investments
Money in a savings account is relatively liquid, compared to other investments such as certificates of deposit (CDs), stocks, bonds, and real estate. You can generally transfer funds to a linked checking account at the same bank instantly or to another bank in a day or two.
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Organized savings goals
Many banks allow you to organize your savings into sub accounts, which can help you visualize savings for specific goals, such as an emergency fund, vacation, wedding, or house down payment.
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Low or no fees
Online banks typically offer high-yield savings accounts with low or no fees.
If you don’t plan to touch the money in your HYSA for a while, you might want to check out our list of the best CDs with the highest rates.
Cons
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Slower growth than other investments
While HYSAs grow faster than traditional savings accounts, they can’t match the growth of the stock market. (Conventional wisdom says you can expect 10% growth in the stock market, but this is over time; its volatility means you could see big ups and big downs in the short term.)
-
Less liquidity than checking accounts or cash
You can spend money directly from a checking account or with cash in your wallet. A savings account is not designed for spending; when you need money from savings to cover a big expense, you’ll need to transfer funds or withdraw money at an ATM.
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Potential transfer limits
In 2020, the Federal Reserve Board eliminated Regulation D, which capped transfers from savings accounts to six per month. Today, many banks allow you to make as many transfers as you’d like. (I can’t tell you how many money moves I make with my Capital One account in a typical month, but man, am I glad Reg D is gone!) Some banks, however, may still limit transfers to six per month; always read the fine print before opening an account.
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Potential fees and minimum balance requirements
Some high-yield savings accounts may charge fees (the best ones don’t!) and may have minimum balance requirements. While a minimum balance requirement of $5 isn’t a big deal, some banks may have much larger balance requirements to earn the highest APY.
Should you open a high-yield savings account?
Everyone should open a high-yield savings account, if eligible. It’s the best way to establish and grow an emergency fund, and it makes it easier to save for other shorter-term goals, such as a vacation, home improvements, a wedding, a house down payment, or starting a family.
Through financial planning, we help clients determine an adequate emergency fund (typically three to six months of expenses) and plan for future cash needs.
We often recommend “bucketing” cash based on timing: Use a high-yield savings account (HYSA) for short-term funds you may need within one to three months, since these accounts are liquid and pay higher rates than traditional banks.
For funds needed later, consider short-term Treasurys or CDs, which can offer higher yields. We continually review client cash reserves to balance liquidity, return, and tax efficiency for their specific goals.
Once you’ve built a solid foundation in a HYSA and paid down your outstanding debts, it makes sense to diversify your investments in stocks and bonds. (I also recommend maxing out 401(k) and IRA contributions first, though.)
To get started, check out several of our picks for the best high-yield savings accounts below, or see our full list here.
If you’ve had trouble with banks in the past, like if your account has been closed because of inactivity or too many overdrafts, you may have trouble opening a high-yield savings account for now. Instead, focus on these best second-chance bank accounts, and after you’ve established good banking habits, you may be able to open a HYSA down the line.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Federal Reserve, National Rates and Rate Caps
- FDIC, Understanding Deposit Insurance
- NCUA, Share Insurance Coverage
- SoFi, SoFi Checking and Savings to Offer Access to Up to $2 Million in FDIC Insurance
- Wells Fargo, Way2Save Interest Rates
- Chase, Chase Savings Interest Rates
- J.D. Power, Bank and Credit Card Apps and Websites Struggle to Stand Out, J.D. Power Finds
- Federal Reserve, Federal Reserve Board Announces Interim Final Rule to Delete the Six-Per-Month Limit on Convenient Transfers From the “Savings Deposit” Definition in Regulation D
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About our contributors
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Written by Timothy Moore, CFEI®Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their pack of senior rescue dogs. She has edited and written personal finance content since 2015.
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Reviewed by Eric Kirste, CFP®Eric Kirste, CFP®, CIMA®, AIF®, is a founding principal wealth manager for Savvy Wealth. Eric brings more than two decades of wealth management experience working with clients, families, and their businesses, and serving in different leadership capacities.