Hands Down, This Is My Favorite High-Yield Savings Account Feature

A high-yield savings account (HYSA) has the ability to transform your finances. If you've only ever saved in a traditional savings account with a big bank, you might be pleasantly surprised when you start receiving your monthly interest payouts once you make the switch.

There's one feature in particular that made me fall in love with my HYSA. Keep reading to learn about it -- as well as a few other must-haves for your HYSA.

One savings account, many sub-accounts

I won't leave you in suspense. My favorite HYSA feature is savings buckets. Depending on the bank, these might be called "pockets," "vaults," "jars," or something else. And you might get to create just a few -- or as many as 30.

But whatever your bank calls them, they all work in much the same way. You open one savings account, but within that single account, you have the option to create sub-accounts that you can use to save discrete amounts of money for different goals. All the money you save counts toward your overall balance, and you'll still earn interest on the full amount.

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.

Why are buckets great?

The odds are good that you have multiple goals you're saving for. I currently have multiple buckets active in my high-yield savings account. I use one to put aside a percentage of every dollar I earn, since I'm responsible for making estimated tax payments four times a year (ah, freelance life).

I also have my emergency fund in a bucket of its own (that bucket was originally where I kept my savings to buy a home -- now that I'm a homeowner, the remaining money has a new purpose). I save money for travel, for my ongoing dental work, and for my cats' vet bills. And as my life and finances change, the buckets can grow and change with me.

Within each of these buckets, I can set savings goals and deadlines for meeting them. And my bank sends me encouraging emails when I reach a milestone (I was thrilled when I reached my goal to buy a home).

It's made the process of setting goals and working toward them more rewarding and fun. I love checking on my progress, and my favorite part of the week is when I get to send money from the big bank where I receive my direct deposit paychecks to the online-only bank that houses my HYSA.

A few other HYSA features worth finding

I love my savings buckets. But I'm also thrilled that my bank offers these features, too. If you're looking for a new high-yield savings account, I recommend putting these at the top of your must-have list:

• FDIC insurance: Don't do business with a bank that doesn't have FDIC insurance. In the event of bank failure, up to $250,000 per depositor, per insured bank, for each account ownership category is protected and will be returned to you. If you have only the HYSA with a certain bank, you can keep up to $250,000 in it (or $500,000 if it's a joint account) without worry.
• A high APY: Of course this is on the list. While we're still coping with a higher federal funds rate, it's a good time to be a saver. You can still find high-yield savings accounts offering rates of 4%, 5%, or higher -- much better than the average savings account rate of just 0.45%.
• No fees: It's 2024 -- there's no reason to pay bank fees anymore. Online banks in particular are often fee-free, meaning there's no monthly maintenance fees, wire transfer fees, or overdraft fees. Why pay a bank to house your money?
• A great mobile app: I love online banking. It's amazing to check up on my savings from anywhere, and I'm fortunate that my bank has an excellent mobile app. I can move money around, deposit checks, and view account documents anytime I want.

Ready to start saving for different goals, all within the same savings account? Open a HYSA that offers savings buckets and have more fun putting cash aside for the future.