3 Reasons You Should Open a High-Yield Savings Account Right Now

High-yield savings account interest rates have come down a bit in the wake of the Federal Reserve's rate cut in September. However, that doesn't make them any less of a powerful financial tool.

Even in a falling-rate environment, like the one we're expected to be in for the next couple of years, a high-yield savings account can be the best place to put your emergency savings. And it's not just about getting a high interest rate.

Let's take a look at three good reasons why you might want to consider a high-yield savings account right now.

High-yield interest rates are much higher than the national average

While it's true that high-yield savings account interest rates change over time and are likely to decline as the Federal Reserve lowers rates, you're still far better off in an online savings account than one at a major brick-and-mortar bank.

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 December 28, 2024. 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 December 28, 2024. 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 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 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.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 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.

The average savings account interest rate is currently 0.42%, according to the FDIC. Meanwhile, there are savings account annual percentage yields (APYs) available that are well above 4% from highly reputable online savings accounts. Even if the Fed lowers rates by another 2 percentage points over the next couple of years, online high-yield savings accounts will still have yields several times greater than what the big banks are paying.

If you don't need immediate access to your money and want to lock in today's high interest rates, consider a certificate of deposit instead. Click here to explore the top CD rates right now.

No fees and no hoops to jump through

I'll be very clear on one point -- under no circumstances should you have to pay a monthly fee for a high-yield savings account.

To be fair, most branch-based savings accounts with monthly fees provide some way to get out of paying them. Typically, you can do this by maintaining a certain average balance, or by meeting certain deposit requirements. But with high-yield savings accounts offered by the top online banks, there simply aren't any monthly fees to worry about. You don't need to save up a certain amount of money before opening an account, and you won't need to commit to a certain regular deposit.

Now, some savings accounts offer additional perks to those who meet certain requirements, but this is very different from needing to maintain a certain balance to avoid a fee. For example, one of our top savings accounts requires a certain amount of monthly deposit volume to unlock the top APY.

Some high-yield savings accounts have unique perks

There's no such thing as the perfect savings account for everyone, and the one that could be the best fit for you might not be the one with the highest interest rate. Some of the top high-yield savings accounts offer unique perks that could make them a great fit for you.

For example, the LendingClub LevelUp Savings account not only has one of the highest APYs on our radar for those who deposit at least $250 monthly, but it offers exceptional ATM access, which is rare for a savings account. The bank offers tens of thousands of fee-free ATMs to account holders, and it will even reimburse any out-of-network ATM fees. Click here to learn more and open an account today.

The bottom line

If you don't have a high-yield savings account yet, now could be an excellent time to make the switch from your brick-and-mortar bank. Not only can you get a superior interest rate, but you might be surprised at the other benefits of using an online savings account.