Are high-yield savings accounts safe?

Yes — as long as the account is held at an FDIC-insured bank or NCUA-insured credit union, your deposits are protected up to $250,000 per depositor, per institution, per ownership category. Online high-yield accounts carry the same federal insurance as traditional big-bank accounts; the difference is they pay a higher APY because they have no branch network to maintain.

How does APY work on a savings account?

APY (Annual Percentage Yield) is the yearly rate you earn, including the effect of compounding. A 4.5% APY with monthly compounding means $10,000 grows to about $1,045.94 after one year. The higher the compounding frequency, the more you earn, though for savings accounts the difference between monthly and daily compounding at the same nominal rate is small.

Should I switch banks to get a higher savings rate?

If the rate difference is meaningful — say 1% or more on a sizeable balance — switching is usually worthwhile. Opening a separate high-yield account is free, takes under 15 minutes, and you keep your existing checking relationship intact. Just confirm the new bank has no minimum-balance fees and is FDIC-insured before transferring funds.

Best High-Yield Savings Accounts of 2025

If your savings are still sitting in a traditional brick-and-mortar bank account, you are leaving money on the table. The national average savings rate at large banks hovers around 0.46% APY, while the best high-yield savings accounts of 2025 pay 4.5% APY or more. On a $25,000 balance, that is the difference between earning about $115 a year and earning over $1,125 a year — hundreds of dollars in genuinely passive income, simply for moving your money to an online bank with no monthly fees and no minimum balance.

High-yield accounts work the same way as a regular savings account: your money is FDIC-insured, you can transfer funds in and out, and interest is paid monthly. The reason online banks can pay so much more is structural — without the cost of thousands of physical branches, they pass the savings on to depositors as higher rates. Below we compare the top options for 2025 so you can choose the right one for your money.

Top high-yield savings accounts compared

The APYs listed below are illustrative estimates for comparison and change frequently as banks adjust their rates. Always confirm the current rate on the bank's website before opening an account.

Bank	APY*	Minimum Balance	Monthly Fees	FDIC Insured
Ally Bank	4.20%	$0	$0	Yes
Marcus by Goldman Sachs	4.40%	$0	$0	Yes
Discover	4.25%	$0	$0	Yes
Capital One 360 Performance Savings	4.10%	$0	$0	Yes
American Express High Yield Savings	4.00%	$0	$0	Yes

*APYs are illustrative estimates as of early 2025 and change frequently. Verify the current rate on each bank's website before opening an account.

Account-by-account breakdown

Ally Bank

Ally is a long-standing favorite among online savers thanks to a consistently competitive rate, no minimum balance, and a clean mobile app. It also offers "buckets" within a single account so you can earmark funds for different goals without opening multiple accounts.

Pros: No minimums or monthly fees, excellent mobile app, interest compounding daily, savings "buckets" for goal tracking.
Cons: No physical branches, rate is competitive but not always the absolute highest available.

Open account at Ally Bank

Marcus by Goldman Sachs

Marcus frequently offers one of the highest APYs in our comparison and often runs referral or new-deposit rate boosts. It has no minimum balance and no fees, and transfers to and from external accounts are typically fast.

Pros: Top-tier APY, no fees, no minimums, easy external transfers, and a track record of promotional rate boosts.
Cons: No checking account option, so you will need a separate bank for bill pay; fewer integrated features than competitors like Ally or Discover.

Open account at Marcus by Goldman Sachs

Discover

Discover pairs a strong savings rate with a full banking relationship — checking, credit cards, and CDs all live under one login. If you already use a Discover card, keeping your savings here simplifies your finances.

Pros: Competitive APY, no fees or minimums, integrated credit card rewards, 24/7 customer service based in the U.S.
Cons: Rate can lag the very top of the market during periods of rapid rate changes; no physical branches.

Open account at Discover

Capital One 360 Performance Savings

Capital One is one of the few high-yield options with actual physical branches and café-style locations in select cities, plus a mature mobile experience. The rate is competitive and there are no minimums or fees.

Pros: Some physical locations, strong app, no fees or minimums, multiple savings goals within one account.
Cons: APY is usually a step below Marcus and Ally; savings rate is unified, so very large balances do not earn a tiered higher rate.

Open account at Capital One 360

American Express High Yield Savings

American Express offers a straightforward, no-frills high-yield account with no fees and no minimums. It is a good fit if you already carry an Amex card and want to keep your savings in the same ecosystem, though the rate is typically the lowest in this group.

Pros: No fees or minimums, simple setup, established brand, integrates with existing Amex login.
Cons: Lowest APY in this comparison, no checking or debit access, fewer account-management features than competitors.

Open account at American Express

How to choose a savings account

The highest APY is not automatically the best choice. Use these criteria to pick the account that fits how you actually manage your money.

Compare APY against fees, not in isolation. A 0.10% higher rate is meaningless if it comes with a $5 monthly maintenance fee that wipes out the difference. Prioritize accounts with $0 monthly fees, then pick the highest APY among them.
Confirm FDIC insurance. Only deposit at banks that display FDIC insurance, which protects up to $250,000 per depositor, per institution, per ownership category. NCUA insurance at credit unions offers equivalent protection. If a bank is not insured, move on regardless of the rate.
Check the minimum balance. Some accounts advertise a high APY but only pay it above a $5,000 or $10,000 threshold. The accounts above all pay their headline rate from $0, which is ideal if you are building savings from scratch.
Test the mobile app before committing. Your savings rate matters only if you can actually move money in and out easily. Read recent app-store reviews and confirm the bank supports fast ACH transfers to your primary checking account.
Keep a separate account for spending. High-yield savings is for money you do not need this month, not for paying rent. Pair your high-yield account with a no-fee checking account and transfer funds as needed — this separation reduces the temptation to spend savings.

See how your savings grow

Once you open a high-yield account, the next question is how much your money will earn over time. Use our compound interest calculator to plug in your balance, monthly contributions, and APY — it shows how compounding turns a steady 4.5% rate into thousands of dollars of interest over years and decades.

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