Welcome! If you’re on this page it means you are looking at options (and recommendations) for a great high yield savings account. These accounts provide the benefits of regular bank account with the added advantage of higher than average interest rates (yields).
Following aggressive federal reserve actions to combat soaring inflation, savings interest rates are finally rising from near zero levels to multi-year highs.
In fact, high yield savings accounts are now a much better deal than checking or savings accounts from your bank or local credit union. Leaving any medium to long-term savings in your bank account is actually costing you money thanks to inflation degrading the real value of your cash.
This is why those looking to park their cash, especially as the stock market volatility continues, should consider a high yield savings account.
When choosing any high yield savings accounts (HYSA), you should use the following 4 key criteria to determine which is best for you:
1. Interest rate or Annual Percentage Yield (APY)
You can see what the industry benchmarks are at some leading online providers of high yield savings accounts, per the screener below. The account you choose should be paying on the higher side of this range and make sure you look at the standard or normal APY and not only at any short term promotional rates they are offering.
2. No fees
Always. If an online savings account is charging you account maintenance or other similar fees, move on. In this day and age, banks and financial institutions make money on the interest spread difference (what they can borrow at versus what they pay you), so you should not be charged any maintenance, administrative or account keeping fees.
3. Ease of use
You can demo most of the reputable online banking user interfaces via their websites. See what you like and feel comfortable using. Also, ensure that linking to your checking or regular bank account is straightforward, and that you can deposit your pay directly into these accounts.
4. FDIC Insured
If you find a financial institution trying to offer you significantly above average APY’s, check their insurance status at the FDIC website. If they are not insured, then it is best to avoid them. All deposit accounts worth $250,000 and less are automatically insured by the FDIC.
Compare the best high yielding savings accounts here.