If your savings account is barely earning anything, a high-yield savings account (HYSA) could be the game-changer you need to boost your savings.
Most big banks offer shockingly low interest rates, making it feel like your money is just sitting there, doing nothing… because it is!
That’s why opening a high-yield savings account could be a smart financial move for anyone looking to optimize where they park their savings.
With a HYSA, you can earn more interest without lifting a finger, helping your money grow passively while staying completely accessible.
Sounds too good to be true? Keep reading to learn more about a few of my favorite savings accounts, how they work and what to consider before opening one.
Why Choose a High-Yield Savings Account?
A HYSA is not an investment product—it’s exactly what it sounds like: a savings account.
It’s a safe and secure place to store your cash, and the best part? The accounts listed below offer the same FDIC insurance as the big-name banks, meaning your money is protected up to $250,000.
The accounts below offer a safe and secure place to store your cash, just like any other savings account—but with a big advantage.
High-yield savings accounts at banks and credit unions are federally insured up to $250,000 per depositor, just like the major banks. That means your money is protected while earning more in interest.
So, how do these savings accounts offer better rates than traditional banks?
It all comes down to overhead. Online banks don’t have to pay for fancy buildings, excessive staff, or outdated systems. Instead, they pass those savings on to you in the form of higher interest rates.
Whether you’re saving for a rainy day, a dream vacation, or simply want to stop letting your bank profit off your hard-earned cash, a HYSA is a no-brainer. Let’s dive into my top five picks for February 2025!
My Top 5 High-Yield Savings Accounts for
February 2025
Below are some of the best HYSAs available right now, offering competitive interest rates to help your savings grow.
HIGH YIELD SAVINGS ACCOUNTS
| BANK NAME | CURRENT YIELD | DATA AS OF ** |
 Capital One 360 Performance Savings | 3.70 % | FEBRUARY 13, 2025 |
 Marcus By Goldman Sachs | 3.90 % | FEBRUARY 13, 2025 |
 Ally Bank | 3.70 % | FEBRUARY 13, 2025 |
 Wealthfront | 4.00 % | FEBRUARY 13, 2025 |
 American Express HYSA | 3.80 % | FEBRUARY 13, 2025 |
*Disclaimer: I personally use Marcus by Goldman and will receive a referral bonus, as will you, if you choose to use Marcus.
** Note: Rates are subject to change. Please verify the current rates by visiting the bank’s website.
The Impact of Choosing a HYSA
Still wondering if switching to a HYSA is worth the effort? Here’s a quick breakdown:
- $10,000 in a Bank of America Savings Account at 0.02% APY = $2 in annual interest
- $10,000 in a High-Yield Savings Account at 3.5% APY = $350 in annual interest
That’s a $348 difference just by choosing the right account! It takes less than 10 minutes to set up, and the extra money can go toward your goals instead of padding the pockets of a big bank.
While this may not be the game-changer for your retirement or long-term wealth, it’s an easy way to boost your bank account without much effort, and that’s a win in my book.
Reasons to Consider One of These High-Yield Savings Accounts
- No monthly fees. The best HYSA options don’t charge maintenance fees.
- No minimum deposit or balance requirements. You can start saving with as little or as much as you want.
- Easy access to your cash. Unlike investments, your money isn’t locked up and can be withdrawn when needed.
- FDIC insurance up to $250,000. Just like any big bank, your money is protected.
Top Tips for Your High-Yield Savings Account
- Don’t chase tiny rate differences. A 0.1% difference in rates won’t make or break your savings, so focus on the overall features, fees and ease of use.
- Spend no more than 10 minutes making a decision. Pick a reputable bank, open an account, and move forward unless a significant rate change occurs.
- This is for short-term savings, not long-term wealth building. A HYSA is perfect for emergency funds and short-term goals but is NOT a substitute for investing.
- Read the fine print. Banks may show a larger stated interest rate on the front page – to later mention in the fine print that you need to deposit X amount or keep X amount as a balance, etc. Read through carefully.
- Refer friends and family. Many HYSA providers offer referral bonuses, so you (and your friends) can earn extra just by sharing!
Other Banks to Consider (With a Few Conditions)
While the above five are my top picks, here are two additional options with a few caveats:
SoFi Bank
SoFi offers competitive rates, but there’s a catch—you must set up auto-deposits to qualify for the higher yield. They also require you to open a checking account alongside your savings. If that works for you, great! But if you prefer a simple, no-strings-attached savings account, you might want to look elsewhere.
CIT Bank – Platinum Savings
CIT Bank often boasts some of the highest yields, currently offering 4.3% as of 02/13/2025. However, they require a $5,000 minimum balance to access their best rates. If you plan to keep a larger balance in savings, this could be a great option!
The Bottom Line – How to Choose the Right Savings Account
A high-yield savings account is one of the easiest financial moves you can make to earn passive income on your cash. The difference between earning pennies and earning hundreds of dollars per year is as simple as choosing the right bank.
Choosing a high-interest savings account doesn’t have to be overwhelming though.
The key is to focus on accounts with strong interest rates, no fees and no strings attached. Keep it simple — choose one, take the easy win for your money and move on to bigger financial decisions, goals and opportunities!
More Resources For You:
If you’re looking for more free financial resources – please check out my Free guides here or continue reading more personal finance tips on the blog here!
