3 Reasons to Open a High-Yield Savings Account in June

Spend any time in the personal finance space and you'll hear a lot of buzz about how the higher federal funds rate (a response from the Federal Reserve to fight higher inflation) is impacting your money.

One bright spot in this development is the fact that certificates of deposit (CDs), money market, and savings accounts are all paying higher rates than we've seen in a long time. If you've been dragging your feet on opening a high-yield savings account (HYSA), now is a great time to do it. Here's why.

1. You can beat inflation

Is your cash sitting in a big bank savings account, earning just 0.01% APY? I don't want to alarm you, but you're losing spending power! Thankfully, inflation is down from its peak of 9.1% in June 2022 (a 40-year high), but as of the April Consumer Price Index report, it stood at 3.4% year over year.

So if you've got saved cash in an account not earning you at least this much, that money is slowly being eaten away by inflation. But since you can open a high-yield savings account with an online bank that earns 5% (or better), you can beat the inflation monster. Plus, the best HYSAs are FDIC-insured -- so your money will be safe, to boot.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

2. You can easily set goals for your cash

Since HYSAs are most commonly offered by online-only banks, they lean hard on technology, and you'll often get access to a great online banking experience (and mobile app) if you open one. Hands down, my favorite feature of my own HYSA is having the ability to create sub-accounts (several banks offer this -- they might be called "pockets," "vaults," or "buckets," depending on the bank) in it. This makes it so easy to set goals!

I'm using the account to save for my impending home purchase, quarterly freelancer tax payments, travel plans, upcoming dental work, and a few other expenses. I can still keep all that money in one place, earn the same high APY on it, and track my progress every time I log into my account. If you struggle to save, having this extra motivation might help -- it's certainly helped me!

3. You can build an emergency fund

As someone who lived paycheck to paycheck for nearly my entire adult life (until very recently), I have known the pain of having to plunk down a credit card for an unplanned bill, knowing I'd be paying it off with interest for the foreseeable future. Well, why not take advantage of the higher rates and ease of HYSAs and set a goal to start an emergency fund?

Experts recommend having three to six months' worth of cash in a savings account to cover emergency expenses and get you through a period of unemployment, should you find yourself out of a job, but this is a lot of money. It's easy to recommend that, but much harder to actually do it -- especially if you don't earn much.

The nice thing about HYSAs, though, is that the best ones will let you open an account with $0 and build your balance at your own pace. If all you can swing is $25 or $50 a month, that's still something. In a year of saving $50 a month, you'll have $600 (not including any gains thanks to your HYSA's interest rate). That's not a small amount of money -- it might cover your auto insurance deductible if you needed to file a claim, for example. Open a HYSA this month so you can start saving for emergencies -- you won't regret it.

Ready to open a high-yield savings account of your very own? Review our list of the best high-yield savings accounts available now and pick the best one for you.