Standout Online Savings Accounts

How to choose the best high-yield savings accounts

Start by looking for banks with the highest rates; these days, anything above 4% APY is a solid return. Then take a look at the requirements to open the account. With some banks, you must have a certain minimum deposit — such as $1,000. Others offer a competitive rate without minimums or restrictions. Consider whether you'll have ATM access, good customer service, and quality mobile apps and remote deposit features. NerdWallet’s bank and credit union reviews take all these factors into account when researching banks. It’s also a good idea to confirm that the funds will be federally insured.

Be willing to look beyond the larger, well-known banks. Many smaller institutions — including online banks and apps — feature good rates and low deposit requirements.

Should I have more than one savings account?

Having multiple savings accounts can be helpful in organizing separate savings goals. For example, you could open one savings account to cover emergencies and another to save for your next vacation.

Best uses for a high-yield savings account

High-yield savings accounts are a great place for your emergency fund. Your money is parked in a safe place, and the APY boosts your savings balance. You can also use high-yield savings accounts to put money away for short-term goals, such as the down payment on a house, a big vacation or a rainy day fund to cover repair or maintenance expenses. You’ll know you’re earning interest, and there’s not the risk of losing your principal as there is with investment accounts. However, an investment account may be a better way to go for longer-term savings goals, such as saving for retirement, as the returns may be higher over time.

The bottom line

The best high-yield savings accounts can help you grow your money faster than basic options. They pay many times more than the national average of 0.41%.

*The national average annual percentage yield ("APY") is listed as 0.41% as reported by the Federal Deposit Insurance Corporation as of February 18, 2025.