What Is a High-Yield Savings Account?
A HYSA is an FDIC-insured deposit account paying far above the 0.45% national average. Online banks lead with 4.25%–5.25% APY because they pass branch-cost savings directly to depositors. Your money is as safe as at any traditional bank with the same government-backed insurance.
Savings account APY comparison — June 2025
| Account Type | APY 2025 | FDIC Insured | Liquidity |
|---|---|---|---|
| Big-Bank Savings | 0.01%–0.10% | Yes $250K | High |
| Online HYSA | 4.25%–5.25% | Yes $250K | High |
| Money Market Acct | 4.00%–5.00% | Yes $250K | High |
| 1-Year CD | 4.50%–5.10% | Yes $250K | Low |
Top HYSA Rates in 2025
Online banks dominate because they have no branch overhead. Rates are variable and subject to change with Federal Reserve policy. Always verify current rates directly on the bank website before opening.
Top HYSA rates — June 2025 (rates change frequently)
| Bank | APY | Min Balance | Fee |
|---|---|---|---|
| UFB Direct | 5.25% | $0 | None |
| SoFi Bank | 4.60% | $0 | None |
| Marcus by Goldman Sachs | 4.50% | $0 | None |
| Ally Bank | 4.35% | $0 | None |
| American Express HYSA | 4.25% | $0 | None |
A $20,000 emergency fund earns $20/year at 0.10% APY but $950/year at 4.75% APY. That is $930 of extra risk-free income for simply choosing the right bank account.
Who Should Open a HYSA?
Anyone with a savings account at a traditional bank earning under 1% APY should open a HYSA immediately. The process takes 10 minutes and the financial benefit starts accruing on day one. FDIC insurance means your money is identical in safety to your current bank.
- Anyone building a 3–6 month emergency fund
- Savers in low-rate traditional savings accounts
- Those saving for a goal 6–36 months away
- Small business owners needing liquid reserves
- Anyone who just paid off high-interest debt
How to Open Your First HYSA
Takes 10 minutes: choose a bank, visit the website, provide your SSN and government ID, link your existing bank account, and transfer your first deposit. Most accounts open same-day with no minimum balance requirement at top online banks.
See How Much Your HYSA Could Earn
Enter your balance and APY to calculate exact interest earnings over 1, 3, and 5 years.