Can I open multiple high-yield savings accounts?

Yes. Many savers keep multiple HYSAs to separate financial goals or to spread deposits across institutions for FDIC/NCUA coverage.

How often is interest compounded and paid?

Most banks compound interest daily and credit it monthly, though compounding and credit schedules vary. Check the account disclosures for details.

Are there withdrawal limits on HYSAs?

Withdrawal limits depend on the bank's policies. Although Regulation D historically limited certain withdrawals to six per cycle, enforcement varies by bank. Check with your bank for current rules.

Best High-Yield Savings Accounts in the USA (2025): Earn More on Your Savings

Q: Are high-yield savings accounts safe?

Yes. When offered by FDIC-insured banks or NCUA-insured credit unions, deposits are protected up to $250,000 per depositor, per institution. Always confirm insurance on the bank's disclosure.

Q: Will my HYSA rate stay the same?

No. HYSA rates are usually variable and can change with market conditions and Federal Reserve actions. Always verify the current APY before opening an account.

Introduction

Best High-Yield Savings Accounts in the USA

Saving money in a regular bank account used to be simple — but not necessarily profitable. With inflation rising and interest rates changing frequently, the traditional savings account doesn’t earn much anymore. That’s where high-yield savings accounts (HYSA) come in. These accounts offer significantly higher interest rates, helping your savings grow faster without any risk to your principal balance.

In this guide, we’ll explore how high-yield savings accounts work, what makes them different from traditional accounts, the best options currently available in the USA, and how to choose the right one for your financial goals.

What Is a High-Yield Savings Account?

A high-yield savings account is a type of savings account that pays a much higher annual percentage yield (APY) than the national average. While most brick-and-mortar banks offer rates as low as 0.01% to 0.10%, high-yield accounts — usually offered by online banks — can pay 4% to 5% APY or even more as of 2025.

These accounts are typically FDIC-insured (or NCUA-insured if through a credit union), meaning your deposits are protected up to $250,000 per depositor, per institution. They’re ideal for building an emergency fund, saving for short-term goals, or parking cash safely while still earning meaningful returns.

How Do High-Yield Savings Accounts Work?

High-yield savings accounts work the same way as traditional ones but with one major advantage: higher interest rates. Interest compounds daily or monthly, meaning you earn interest on both your initial deposit and the interest that accumulates over time.

Because online banks have lower operating costs than physical banks, they can pass those savings on to customers through higher APYs. Most accounts have:

No monthly maintenance fees
No minimum balance requirements
Easy online or mobile access
Automatic transfers and linking to checking accounts

Why Choose a High-Yield Savings Account?

There are many reasons Americans are switching to high-yield accounts in 2025:

Better Returns: Earning 4.5% APY instead of 0.05% can make a massive difference in the long run.
Safety: FDIC or NCUA insurance ensures your money is protected.
Liquidity: You can withdraw funds anytime without penalty (though federal limits allow only six withdrawals per month).
No Market Risk: Unlike investing, your principal isn’t exposed to market fluctuations.
Goal-Based Saving: Great for emergency funds, travel savings, or short-term goals like buying a car or house.

Current Average APY in the USA (2025 Update)

As of October 2025, the national average savings account rate sits around 0.46% APY, according to FDIC data. However, high-yield savings accounts at top online banks offer between 4.25% and 5.25% APY — nearly ten times the national average.

Best High-Yield Savings Accounts in the USA (Updated October 2025)

1. UFB Direct High-Yield Savings

APY: 5.25% (as of October 2025)
Minimum balance: $0
Monthly fees: None
Highlights: One of the highest APYs available in the market with easy online access. UFB Direct is FDIC insured through Axos Bank.

2. Bread Savings

APY: 5.15%
Minimum balance: $100 to open
Monthly fees: None
Highlights: Known for consistent top-tier interest rates and user-friendly mobile app.

3. MyBankingDirect High-Yield Savings

APY: 5.20%
Minimum balance: $0
Monthly fees: None
Highlights: Backed by New York Community Bank, this account combines reliability with one of the best current yields.

4. CIT Bank Platinum Savings

APY: Up to 5.05% (on balances over $5,000)
Minimum balance: $100 to open
Monthly fees: None
Highlights: A great option for savers with larger balances; offers tier-based rates.

5. SoFi Checking & Savings

APY: 4.60% (with direct deposit)
Minimum balance: $0
Monthly fees: None
Highlights: Offers combined checking and savings with bonuses and fee-free ATM access. FDIC insured up to $2 million through partner banks.

6. Ally Bank Online Savings Account

APY: 4.25%
Minimum balance: $0
Monthly fees: None
Highlights: Reputable online bank with 24/7 support, easy transfers, and smart tools for goal-based saving.

7. Discover Online Savings

APY: 4.30%
Minimum balance: $0
Monthly fees: None
Highlights: No fees and easy integration with Discover credit cards; strong reputation and user experience.

8. Marcus by Goldman Sachs

APY: 4.40%
Minimum balance: $0
Monthly fees: None
Highlights: Trusted name with competitive rates and a strong mobile app; also offers no-penalty CDs.

9. Capital One 360 Performance Savings

APY: 4.25%
Minimum balance: $0
Monthly fees: None
Highlights: Easy online management, automatic savings tools, and excellent integration with Capital One credit cards.

10. American Express High Yield Savings

APY: 4.35%
Minimum balance: $0
Monthly fees: None
Highlights: Simple setup, easy transfers, and a strong track record from one of the most trusted financial institutions in the U.S.

Key Factors to Compare Before Opening an Account

Before you decide which account is best for you, consider these factors:

APY: Higher isn’t always better if the account has restrictions.
Fees: Ensure there are no monthly maintenance or transfer fees.
Compounding Frequency: Daily compounding helps your money grow faster.
Withdrawal Limits: Federal Regulation D still limits certain withdrawals.
Ease of Access: Check if mobile banking, ATM access, and transfers are smooth.

Pros and Cons of High-Yield Savings Accounts

High-yield savings accounts (HYSA) give you higher returns than traditional savings without market risk, and they’re usually FDIC- or NCUA-insured so your principal is protected up to $250,000. Many top HYSAs in 2025 pay multiple percentage points above the national average, making them a smart place to park emergency savings or short-term cash.

Pros
• Significantly higher APYs than standard savings accounts, often multiple percentage points above the national average.
• Low or no monthly fees and low minimums at many online banks, increasing net returns.
• FDIC/NCUA insurance protects deposits up to $250,000 per depositor, per institution. (Check your bank/credit union disclosures.)
• Liquidity — funds are accessible for withdrawals and transfers without market risk.

Cons
• Rates are variable and can fall if the Fed cuts rates; top APYs can change quickly.
• Federal limits (Reg D) or bank policies may restrict certain outgoing transfers (some banks relaxed Reg D enforcement, but check your bank).
• Promotional or tiered rates may require conditions (minimum balances, direct deposit, or bundling products). Read the fine print.

Smart Ways to Maximize Your HYSA Returns

Shop rates regularly — top APYs change fast. Use rate trackers (NerdWallet, Bankrate, Kiplinger) to compare the real, current APY before opening an account. Many sites update daily.
Avoid teaser traps — some banks advertise a high APY for a short promo period or require minimum balances to earn the top tier. Confirm the APY on the balance you expect to keep.
Use multiple accounts for FDIC coverage or goals — if you have more than $250,000 to protect, spread funds across institutions or use deposit-placement services.
Automate transfers — set recurring transfers from checking to your HYSA so you save consistently and take advantage of compounding.
Consider laddering with short-term CDs for parts of your emergency fund if you want locked rates for a portion of savings. CDs often offer competitive fixed returns.

How to Choose the Right Bank or Credit Union

When selecting a HYSA, compare these factors, not just APY:
• Real APY for your balance range (not only the advertised top tier). Verify whether rates are tiered. My Banking Direct
• Fees: monthly maintenance, outgoing transfer fees, ATM fees (if any), or minimum balance penalties. ufbdirect.com
• Account access and UX: mobile app, ACH/linking to checking, mobile deposit, and transfers. Good UX reduces friction to save. NerdWallet
• Compounding frequency: daily compounding yields slightly more than monthly. Check the disclosures. Bankrate
• Safety: confirm FDIC or NCUA membership and read the institution’s insurance statement. NerdWallet
• Fine print: promo periods, rate change policies, and any requirements to qualify for top APY (e.g., direct deposit, minimum balance). Kiplinger

Best Practices for an Emergency Fund Using a HYSA

• Target 3–6 months of essential expenses for a basic emergency fund, longer if your job is volatile. Keep that full amount in a liquid HYSA. Kiplinger
• Keep immediate cash (1 paycheck) in an accessible checking account and the rest in a HYSA so you earn the higher APY. Kiplinger
• Replenish the fund automatically — set recurring transfers timed with paydays. Automation prevents spending that money elsewhere. ufbdirect.com
• Reevaluate allocation if rates shift — if the HYSA rate drops materially, consider a partial shift into short-term CDs or other insured options after comparing effective yields. Kiplinger

Real Examples and Quick Comparisons (October 2025 snapshot)

Top rate leaders and representative features (rates vary daily; always confirm on the bank site):
• Bread Savings — competitive HYSA rates, low/no fees, often a top-tier APY. breadfinancial.com+1
• My Banking Direct — strong tiered APYs for different balance bands; often among leaders. My Banking Direct
• UFB Direct — frequently featured by aggregators with competitive APY and no minimums. ufbdirect.com+1
• Established online banks (Ally, Discover, Marcus) — slightly lower than boutique leaders but offer broad service features and strong reputations. NerdWallet+1

External Helpful Links

• Federal Student Aid and consumer finance resources are helpful for other topics, but for HYSA rate checks use: NerdWallet — Best High-Yield Savings Accounts. NerdWallet
• Bankrate — regularly updated HYSA lists and rate charts. Bankrate
• Kiplinger — commentary on no-fee high-yield accounts and how to avoid pitfalls. Kiplinger
• Individual bank pages (examples): UFB Direct savings, Bread Savings, My Banking Direct (links below). Confirm APY on the bank’s own site before opening. ufbdirect.com+2breadfinancial.com+2

Frequently Asked Questions

Q1: Are high-yield savings accounts safe?
A: Yes — when the account is FDIC-insured (banks) or NCUA-insured (credit unions), deposits are protected up to $250,000 per depositor, per institution. Confirm the insurer on the bank’s disclosure.

Q2: Will my HYSA rate stay the same?
A: No. Most HYSA rates are variable and change with market/monetary policy moves. Top advertised APYs can fall with Fed rate cuts or rise with hikes. Always verify the current APY.

Q3: Can I open multiple HYSAs?
A: Yes. Many savers open multiple accounts to separate goals (emergency, travel, house) or to spread deposits across institutions for FDIC coverage.

Q4: How often is interest paid?
A: Banks typically compound interest daily and credit it monthly; check the account disclosures for exact compounding and crediting schedules. Daily compounding slightly increases effective yield.

Q5: Are there withdrawal limits?
A: Historically Regulation D limited certain withdrawals to six per statement cycle. Many banks relaxed enforcement after 2020, but policies vary — check with your bank.

Expert Comparison and Recommendations

Now that we’ve covered how high-yield savings accounts work and what to look for, let’s compare the top options available in the USA in October 2025. The following comparison focuses on key factors like APY, fees, minimum balance, and overall user experience.

Comparison Table: Best High-Yield Savings Accounts (October 2025)

Bank/Institution	Current APY (as of Oct 2025)	Minimum Balance	Monthly Fees	FDIC/NCUA Insured	Best For
UFB Direct	5.25%	$0	None	FDIC	Highest APY overall
MyBankingDirect	5.20%	$0	None	FDIC	Everyday savings with high returns
Bread Savings	5.15%	$100	None	FDIC	Consistent top performer
CIT Bank Platinum Savings	5.05% (>$5,000)	$100	None	FDIC	Larger balances
SoFi Checking & Savings	4.60% (with direct deposit)	$0	None	FDIC (multi-bank)	All-in-one banking
Marcus by Goldman Sachs	4.40%	$0	None	FDIC	Simple and trusted
Discover Bank	4.30%	$0	None	FDIC	Excellent online experience
American Express Bank	4.35%	$0	None	FDIC	Brand reliability
Capital One 360 Performance Savings	4.25%	$0	None	FDIC	Seamless integration with Capital One products
Ally Bank	4.25%	$0	None	FDIC	Great digital tools and customer service

(Rates verified from major comparison platforms and bank sites as of October 2025. Actual rates may change based on Federal Reserve policy and market conditions.)

Best Accounts by Category

1. Best Overall: UFB Direct High-Yield Savings

With an APY of 5.25%, UFB Direct remains the highest-paying savings account in the market for 2025. It has no minimum balance, no monthly fees, and full FDIC insurance through Axos Bank. The online dashboard and mobile app are straightforward, though customer support is primarily online-based.

2. Best for Consistent High Rates: Bread Savings

Bread Savings consistently ranks near the top of the high-yield savings market. Its 5.15% APY makes it one of the most stable performers even as other banks fluctuate. The user experience is clean, and transfers between linked accounts are fast and free.

3. Best for All-in-One Banking: SoFi Checking & Savings

SoFi offers an integrated banking solution combining checking and savings accounts with up to 4.60% APY on deposits when direct deposit is active. It also provides early paycheck access, no overdraft fees, and FDIC insurance up to $2 million through partner banks — making it ideal for digital-first users.

4. Best for Long-Term Savers: CIT Bank Platinum Savings

CIT Bank’s 5.05% APY applies to balances over $5,000, rewarding savers who maintain larger deposits. It’s backed by the reliability of a long-standing institution and provides a simple online interface.

5. Best for Reliability and Reputation: Marcus by Goldman Sachs

Marcus remains a favorite among savers who prioritize trust, simplicity, and strong customer service. Its 4.40% APY, zero fees, and user-friendly platform make it an excellent option for long-term savers who value stability over the highest yield.

6. Best for Mobile Users: Discover Online Savings

Discover’s mobile app experience stands out with intuitive navigation, easy transfers, and fast account setup. With a 4.30% APY, no fees, and trusted support, it’s a great fit for users who want convenience with peace of mind.

7. Best for Big Bank Integration: Capital One 360 Performance Savings

This account offers a 4.25% APY with no minimum balance or fees. The standout feature is its seamless integration with Capital One’s credit cards and checking accounts, making financial management easier for existing customers.

Understanding How Rate Changes Work

High-yield savings account rates fluctuate based on broader economic trends, especially changes in the Federal Reserve’s benchmark interest rate. When the Fed raises rates, banks tend to increase APYs to attract deposits. Conversely, when the Fed cuts rates, APYs generally decrease.

Since mid-2024, the Fed has maintained relatively high interest rates to combat inflation, which has kept savings account yields at record highs. However, analysts expect moderate rate cuts in late 2025, which might slightly lower APYs in the coming months.

Tip: If you see a rate above 5%, it’s a great time to take advantage of it — these opportunities don’t last long in a lowering-rate environment.

When to Consider Alternatives

While high-yield savings accounts are perfect for short-term goals and emergency funds, there are scenarios where other products might make more sense:

Certificates of Deposit (CDs): If you can lock your money for 6–12 months, some CDs offer fixed rates above 5.5%.
Money Market Accounts: Offer similar yields but may include check-writing or debit access.
Treasury Bills (T-Bills): Low-risk government securities currently yielding around 5%, often with tax benefits.

Each option has its pros and cons, but HYSAs remain unbeatable for liquidity and flexibility.

Expert Advice for Savers in 2025

Open multiple HYSAs if needed. You can split savings between two or three institutions to access top-tier APYs while maximizing FDIC coverage.
Avoid unnecessary fees. Many banks advertise high APYs but charge inactivity or transfer fees. Always review the fee schedule.
Check compounding frequency. Daily compounding yields slightly better returns than monthly.
Automate saving. Setting up automatic transfers ensures consistent growth.
Review rates quarterly. Banks often adjust APYs; switching to a better rate can make a big difference annually.

Conclusion

The best high-yield savings accounts in the USA for 2025 combine high returns, zero fees, and strong digital accessibility. Whether you prioritize the highest rate, best customer experience, or flexible account features, there’s an option tailored to your financial needs.

If you’re currently holding money in a traditional savings account earning less than 1%, now is the perfect time to switch. With APYs still hovering above 4.5%–5%, even a modest balance can grow meaningfully over time — safely and effortlessly.