5 Underrated Perks of High-Yield Savings Accounts

The No. 1 reason to get a high-yield savings account is right there in the name: They have APYs that are far above average. Savings accounts as a whole have lackluster rates. The average is just 0.42%, according to the FDIC. But if you check out top high-yield savings accounts like these, you can find many offering 4%, 4.5%, or more.

While high rates are the big drawing point, they're far from the only reason to get a high-yield savings account. Keep reading to learn about the underrated perks they offer.

1. Bonuses

Interest isn't the only way you could grow your savings with a high-yield account. Some banks also offer bonus opportunities, often for $100 to $200. These are normally new account bonuses. You earn them by opening an account and completing the bonus requirements, such as depositing a minimum amount of money.

If you're looking for a high-yield savings account with a bonus, consider the Discover® Online Savings account. It has a 3.75% APY, and for a limited time, it's offering a bonus for new customers. Click here to learn more and open an account today.

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 29, 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 29, 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.

2. Savings buckets

If you're like most people, you probably have more than one savings goal. Maybe you're saving for an emergency fund, a down payment on a home, and a trip next summer. It's tough to keep track of your progress on each goal if all your savings is lumped together in one account.

The solution? Savings buckets. These are sub-accounts you can use for specific goals. Many high-yield savings accounts offer this feature. You could have your emergency fund bucket, your down payment bucket, and your summer vacation bucket, all under your main savings account (and earning the same high APY).

3. No monthly fees

With a high-yield savings account, you're not just earning more interest than you would with a traditional savings account. You can also avoid the annoying monthly fees that big banks frequently charge.

It's mainly online banks that offer high-yield savings accounts. They don't have the overhead costs that come with operating bank branches, so they don't need to charge all the same fees as brick-and-mortar banks. You won't have any trouble finding a high-yield account with no monthly fees. Online banks are also a good place to find no-fee checking accounts, too.

4. No minimum balance requirements

Another common banking headache you can avoid with high-yield accounts is a minimum balance requirement. Some banks require that you deposit a minimum amount to open an account or maintain a minimum balance to avoid monthly fees.

You don't see this too often with high-yield savings accounts. There are some with minimum opening deposit requirements. But there are many more with no minimum requirements at all.

5. FDIC insurance

One of the most common concerns with high-yield savings accounts is whether your money is safe. Some people are understandably concerned about putting their savings in an online bank that they may not be able to visit in person.

High-yield savings accounts generally have the same FDIC insurance as the big banks. This covers up to $250,000 per eligible account and ownership category if the bank fails. You can confirm that a bank is FDIC insured on its website -- just look for the words "FDIC member."

If you don't have a high-yield savings account yet, it's well worth opening one and moving your savings there. They keep your money safe, they're consumer-friendly, and they ensure you get a competitive rate on your savings.