Ethan Riley
High-yield savings accounts are a great way to grow your money safely, as they offer higher interest rates than most traditional savings accounts. While traditional accounts offer around 0.01% APY, high-yield savings accounts can offer upwards of 4% APY. This means that your money grows faster without any additional effort on your part. As of September 2025, several banks are offering high-yield savings accounts with APYs of up to 4.35%. These include Zynlo Bank, Bask Bank, and SoFi Bank. However, it's important to note that high-yield savings accounts may have restrictions on the number of withdrawals you can make, and there may be minimum balance requirements or fees associated with these accounts.
| Characteristics | Values |
|---|---|
| Annual Percentage Yield | The APY, or annual percentage yield, is the amount of compound interest an account earns in a year. |
| High-Yield Savings Accounts | Earn a much greater APY than traditional savings accounts. |
| Traditional Savings Accounts | Earn around 0.01% APY. |
| High-Yield Savings Accounts APY | Upwards of 4% APY. |
| High-Yield Savings Accounts Compared to Traditional Savings Accounts | Earn 10x the national average interest rate. |
| High-Yield Savings Accounts Compared to Traditional Savings Accounts | Earn up to 20x the national average for savings accounts. |
| Current National Average APY | 0.59% APY. |
| Highest APY Offered | 4.46% APY by Openbank Savings account. |
| Highest APY Offered by a Bank | 4.35% APY by Zynlo Bank. |
| APY Offered by Bask Bank | 4.3% APY. |
| APY Offered by SoFi | 3.8% APY. |
| APY Offered by Barclays | 3.7% APY. |
| APY Offered by American Express | 3.5% APY. |
| APY Offered by Synchrony | Up to 3.8% APY. |
| APY Offered by UFB Portfolio Savings | N/A. |
| APY Offered by EverBank Performance Savings | N/A. |
| APY Offered by Western Alliance Bank | N/A. |
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What You'll Learn
High-yield savings accounts
The best high-yield savings accounts don't charge fees and have low minimum deposit requirements. Some accounts to consider include those offered by Zynlo Bank, Bask Bank, Bread Savings, TAB Bank, and Synchrony. Online-only banks traditionally offer better APYs than brick-and-mortar banks, as they have much lower overhead and can pass on the savings to their customers in the form of higher interest rates.
It's important to note that savings APYs are variable and may change after the account is opened. Additionally, the interest earned in a savings account is generally taxable. When choosing a high-yield savings account, it's essential to consider factors such as APY, account minimums, fees, and withdrawal limits.
Having multiple savings accounts can also be beneficial in organizing separate savings goals. For example, you could open one high-yield savings account for emergencies and another for a vacation fund.
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APY and interest rates
When dealing with interest-bearing bank accounts, it is important to understand the difference between annual percentage yield (APY) and interest rates. While the terms are sometimes used interchangeably, they are not the same. Knowing the distinction between the two will help you know how much return to expect on your deposits and investments.
APY reflects the total amount of interest you earn on the money in an account over one year. It is the amount of compound interest an account earns in a year, based on the account's interest rate and the number of times interest is paid during the year. On the other hand, the interest rate is the percentage of interest earned on the original amount in a savings account, investment, or loan. It does not account for compound interest.
For example, if you deposit $1,000 in an account earning a simple interest rate of 5% annually, you would earn $50 in interest over one year. However, with compound interest, you would earn $50 in interest on the initial deposit, and in the second month, you would earn interest on $1,004.17 (initial deposit plus interest from the first month). This would result in a total of approximately $1,051.16 at the end of the year.
High-yield savings accounts typically offer much higher APYs than traditional savings accounts. For example, as of September 2025, Zynlo Bank offered a 4.35% APY, which is about seven times the national average of 0.59% APY. Some other high-yield savings accounts with competitive APYs include Synchrony High-Yield Savings, Openbank Savings, and Bask Bank Interest Savings Account. These accounts often have minimal fees and low minimum deposit requirements.
While I could not find information on a specific bank offering a 10% interest rate, it is important to note that APY and interest rates are subject to change over time. Therefore, it is advisable to check with various financial institutions to inquire about their current rates and offers.
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Account fees
When considering a high-interest savings account, it is important to also consider the account fees that may be associated with the account. While some banks offer no-fee accounts, others may charge a variety of fees that can impact your savings. Here are some common account fees to consider:
- Monthly service or maintenance fees: Some banks charge a monthly service or maintenance fee, which can eat into your savings over time. Look for accounts that do not charge this fee or have ways to waive it.
- Minimum balance requirements: Certain accounts may require you to maintain a minimum balance. If you fall below this minimum, you may be charged a fee or lose the high-interest rate offered. Be sure to choose an account with a minimum balance requirement that you can comfortably maintain.
- Transaction fees: Banks may charge fees for certain types of transactions, such as wire transfers, ATM withdrawals, or peer-to-peer transfers. Understand the fee structure for different types of transactions before choosing an account.
- Excess withdrawal fees: High-yield savings accounts often limit the number of withdrawals you can make per month (typically up to six). If you exceed this limit, you may be charged an excess withdrawal fee for each additional withdrawal.
- Overdraft fees: Some banks may charge overdraft fees if you attempt to withdraw more money than you have in your account. Look for accounts that do not allow overdrafts or do not charge a fee for this service.
- Account opening or closing fees: A few banks may charge a fee to open your account or close your account, especially if specific requirements are not met. For example, some banks require you to fund your account within a certain number of days after opening it; otherwise, they may charge a fee or close the account.
When considering a high-interest savings account, be sure to carefully review the fee schedule and account terms to understand all the potential fees that may apply. By choosing an account with minimal or no fees, you can maximize your savings and take advantage of the high-interest rate offered.
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Minimum balance requirements
When it comes to high-yield savings accounts, there are several factors to consider, including minimum balance requirements. While some accounts offer high interest rates, they may also come with specific conditions or requirements that must be met to earn the advertised rate. One such requirement is a minimum balance.
It is important to carefully review the terms and conditions of any high-yield savings account before opening an account. Some accounts may offer a high interest rate but require a substantial minimum balance, which may not be feasible for everyone. Additionally, some accounts may have a minimum balance requirement to open the account, while others may allow you to open an account with a small initial deposit and then require a minimum balance to be maintained to avoid fees or earn interest.
While a high-yield savings account with a minimum balance requirement may offer a higher interest rate, it is crucial to weigh this against the accessibility of your funds. Accounts with minimum balance requirements may charge penalties or fees for falling below the specified balance. Therefore, it is essential to consider your financial situation and goals when deciding between accounts with and without minimum balance requirements.
Overall, when choosing a high-yield savings account, it is important to look beyond just the interest rate and consider all the features and requirements of the account. By understanding the minimum balance requirements and how they align with your savings goals, you can make a more informed decision about which account is right for you.
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Online vs. in-person banking
Online banking and in-person banking both have their own advantages and disadvantages. In this digital age, most traditional banks have instituted some sort of online banking component, but there are still some key differences between them and banks that are entirely web-based.
One of the biggest concerns for consumers considering web-based banking is security. Many people feel that physically handing money over to a cashier is safer than making an electronic transaction. They may fear that their information could be stolen online. However, online banks are FDIC-insured, so deposits are insured and safe.
Traditional banks have the upper hand when it comes to accessing your money. Most large traditional banks have ATMs located everywhere, whereas online banks are limited in this respect. While online banks usually have agreements with ATM services that allow for free withdrawals, there is still a daily limit (typically $500). With traditional banks, it is easy to visit a branch and withdraw more money in person.
Online banks are available in all 50 states, and sometimes even in other countries. In contrast, even the biggest in-person bank chains are in fewer than 40 states. This makes online banks a good option for those who may relocate their business. Online banks are also often cheaper than traditional banks, offering free online checking accounts for small businesses, with no monthly maintenance fees, free ATMs, and no transaction fees.
Traditional banks offer in-person customer service, which may be important to some customers. They also tend to have more customer support options, with 24/7 support and contact through phone, email, and online chat. However, online banks do their best to make up for the lack of in-person support by offering transparent no-fee accounts and high-yield interest rates on savings accounts.
In conclusion, both online and in-person banking have their pros and cons. It is important to consider how you will be using the bank and choose the one that best fits your needs and goals.
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Frequently asked questions
A high-yield savings account (HYSA) is a savings account that pays a higher interest rate than traditional savings accounts. This rate is often 10 to 20 times greater than the national average for savings accounts.
Some of the best high-yield savings accounts as of September 2025 include:
- SoFi's online bank account
- Bask Bank's Interest Savings Account
- Barclays Online Savings Account
- Synchrony High-Yield Savings
- American Express
- Zynlo Bank
High-yield savings accounts offer higher interest rates than most savings accounts, allowing your money to grow faster. They are also safe, as they are federally insured for at least $250,000.
Some things to consider include:
- Interest rates: Shop around and compare the interest rates offered by different banks.
- Compounding: Understand how frequently each bank compounds interest, as this impacts your return.
- Requirements: Look into any requirements such as opening balance, minimum balance, and fees.
- Accessibility: Find out how you can access your money and customer service options.
