5 Reasons to Open a High-Yield Savings Account in 2025
KEY POINTS
- High-yield savings accounts have impressive rates, and some even offer bonuses for new customers.
- Most of them don't charge monthly service fees.
- You can get the same FDIC insurance you would from a big bank.
Everybody needs a safe place to keep their savings. For most people, that place is a savings account. But if you use a typical savings account at a brick-and-mortar bank, you probably aren't getting the most out of your money.
High-yield savings accounts, mostly offered by online banks, are a much better option. If you've been looking for one, click here to see our list of the best high-yield savings accounts. And if you're not sure about switching bank accounts, here's why it's worth doing.
1. You'll earn much more interest
High-yield savings accounts live up to their name. The average savings rate nationwide is a pedestrian 0.41%, according to the FDIC. Many high-yield savings accounts have rates of 4% or more.
On a $10,000 balance, an average savings account would reward you with less than $50 per year in interest. With a high-yield savings account, you could potentially earn $400 or more. No matter how much money you've saved, there's no reason to settle for less.
Our Picks for the Best High-Yield Savings Accounts of 2025
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.70%
Rate info
3.70% annual percentage yield as of April 18, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.70%
Rate info
3.70% annual percentage yield as of April 18, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
CIT Platinum Savings
Member FDIC.
APY
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn
$100 to open account, $5,000+ for max APY
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
|
$100 to open account, $5,000+ for max APY
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Barclays Tiered Savings
Member FDIC.
APY
4.10%
Rate info
Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.
Min. to earn
$0
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
4.10%
Rate info
Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.
|
$0
|
Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
2. You could earn a bonus
Interest payments aren't the only way a high-yield savings account can boost your savings. Some of them also have bonuses, typically for new customers. Bonus offers are usually tied to how much money you bring over.
If you're interested in a savings account with an impressive rate and a bonus opportunity, consider the Discover® Online Savings account. It has a 3.70% APY, and new customers can earn a big bonus. Click here to find out more and open an account today.
3. You can avoid fees
Savings accounts at most big banks don't just have low interest rates. They can also cost you money in the form of account fees. They often have monthly service fees, with fee amounts normally ranging from $5 to $25.
In most cases, there are ways to avoid monthly fees, such as maintaining a minimum balance or receiving direct deposits every month. But high-yield savings accounts generally don't charge service fees in the first place. That's much more convenient than jumping through hoops to get a fee waived every month.
4. They're safe
If you're new to online banks, I understand being nervous about moving your money to one. A bank with branches on every corner might feel safer.
There's nothing risky about having your money in a high-yield savings account with an online bank. Most of them are FDIC insured, just like brick-and-mortar banks. If the bank fails, FDIC insurance covers up to $250,000 per bank, per depositor, and per account ownership category, reimbursing you for any losses. You can check that a bank is an FDIC member on its website or by using the FDIC's BankFind tool.
5. They make it easy to manage your money
High-yield savings accounts let you access your money at any time. They're not like certificates of deposit (CDs), which require you to lock up your deposit for a set period. Some savings accounts even send you a debit card so you can make withdrawals at ATMs. If that's a feature you want, you could also find a money market account.
Many online banks also offer useful money management tools with their accounts. For example, you could get an account that offers savings buckets. These are sub-savings accounts, allowing you to better organize your savings. You could have savings buckets for your emergency fund, travel savings, holiday gifts, and any other savings goals you have.
I've been using a high-yield savings account for years, and it's one of the best money moves I made. If you don't have one already, it doesn't take long to change that. Once you find an account you like, the application process usually doesn't take more than 15 minutes.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.