High-yield savings account rates

Savings account rates fluctuate based on the economy and competition among banks. The current national average, or APY, is 0.42%. The best high-yield savings accounts have much higher rates with APYs of around 4% or more:

• Average savings account rates: 0.42% APY
  _{(Based on the latest FDIC estimates)}


• Best high-yield savings account rates: 4.35% APY
  _{(Based on rates from our featured financial institutions)}

What is APY?

Annual percentage yield, or APY, measures how much interest your account can earn over a year. The higher the APY, the more money you can earn.

Keep reading to learn more about how high-yield savings accounts work, or explore our best high-yield savings account 2025 reviews.

How a high-yield savings account works

With a high-yield savings account, or HYSA, your deposits earn more over time. These accounts can be a smart way to grow your savings faster, particularly when it comes to building emergency funds or saving for future goals.

Here’s how a $5,000 deposit into a high-yield savings account would grow at different rates:

• Account growth with 0.42% APY
  • 1 Year: $5,021
  • 3 Years: $5,063
  • 5 Years: $5,106
  
  
• Account growth with 4% APY
  • 1 Year: $5,200
  • 3 Years: $5,624
  • 5 Years: $6,083

High-yield savings account pros and cons

🖒 Pros

• Higher APY compared to a traditional savings account
• Better return on your money, helping savings grow faster
• Offers guaranteed returns, as the interest rate is fixed and not subject to market fluctuations like stocks
• Accounts are FDIC insured up to $250,000, providing guaranteed protection for deposits
  _{(This applies to all accounts featured on our site but may not apply to accounts from other financial institutions.)}

🖓 Cons

• May have restrictions on the number of monthly withdrawals or transfers
• Less ideal if you need frequent access to funds

How to open a high-yield savings account

To open a high-interest savings account, start by visiting the bank’s website and completing the application. The process is quick and typically takes only a few minutes. You may need to provide proof of identification, such as your Social Security number or tax ID, which is a standard requirement for opening any bank account.

Once your account is set up, you can link an existing bank account to transfer money in and out of your HYSA account. Some accounts may require an opening deposit, which is usually between $1 and $100.

Additional steps for opening a specialized bank savings account:

• Kids savings account
  To open a kids savings account, you’ll need to list a parent or guardian as a shared account holder in the application. The account can be turned over to the child when they reach a certain age, typically 18. The best kids savings account combines high APY with no or low fees, making it ideal for maximizing growth and achieving long-term goals like saving for college or major purchases.


• Joint savings account for couples
  To open a joint savings account, simply indicate in your application that there will be multiple account holders and provide any necessary information to verify both individuals identity. The best joint account for savings will have high rates and low fees for couples, family members, or business partners who want to save together and earn high returns on their deposits.