Best high-yield savings accounts

Compare top high-yield savings accounts

To create our list of the best high-yield savings accounts, we thoroughly researched and compared the current annual percentage yields (APYs) offered by various banks and credit unions. We also considered minimum balance requirements, fees and ease of use to ensure our top picks provide the most value for your money.

How to open a high-yield savings account

Opening a high-yield savings account is quite simple.

“Online accounts can be opened in minutes; a transfer from your old bank to the new account is all it takes to get started,” said Leslie Tayne, founder and head financial attorney at New York-based Tayne Law Group. “If you aren't depositing cash, the entire process can be completed online and quickly.”

Follow these steps:

1. Research options. Look for banks, online banks or credit unions (like the ones on this list) that offer high-yield savings accounts. Compare interest rates, minimum balance requirements and fees, so you know what to expect.
2. Choose an institution. Once you’ve compared a few options, select the bank or credit union that sounds the best to you. Ideally, it should have no fees and offer features you’re looking for, such as an ATM card, overdraft protection or savings tools.
3. Gather documents and information. The application will usually ask for your full name, home address, date of birth, Social Security number and a government-issued ID (like a driver's license or passport). 
4. Visit the institution's website. Go to your chosen bank or credit union’s website and locate the "Open an Account" or "Apply Now" button.
5. Fill out the online application. Enter your personal information and upload a copy of your ID if needed. You may also need to choose an initial deposit amount and method (such as transferring funds from another bank account).
6. Accept terms and submit. Read and agree to the terms and conditions of the account, then submit your application. You’ll usually find out instantly if you’re approved or not, although it may take a few days in some situations. 
7. Get approved. Once approved, you'll receive information on how to access your new high-yield savings account — usually through the bank’s mobile app and website.

“There are minimal downsides to switching your traditional savings accounts to a high-yield account,” said Tate. “And you can always switch back if you find that the new account isn't meeting your needs.”

» MORE: Is a high-yield savings account really high-yield?

Pros and cons of high-yield savings accounts

High-yield savings accounts have one major benefit: “They typically give savers a much higher APY than traditional savings accounts,” said Tayne.

However, these accounts tend to be mostly offered by online-only banks, which often means fewer account options and no ability to deposit cash.

» MORE: Cash management account vs. high-yield savings account