How We Evaluate Savings Accounts
We evaluate high-yield savings accounts based on five factors: APY (the interest rate you earn), fees (monthly maintenance fees, minimum balance fees), accessibility (how easy it is to deposit and withdraw), FDIC insurance coverage, and the overall user experience including app quality and customer service.
APY matters, but it's not the only factor. A savings account with a slightly lower APY but zero fees, no minimums, and excellent app design is often a better choice than one with the highest rate but hidden requirements. We also prioritize accounts that don't require jumping through hoops — like maintaining a specific balance or setting up direct deposit — unless the benefit clearly justifies it.
What is a high-yield savings account?
A high-yield savings account is a savings account that pays significantly more interest than a traditional bank account. While the national average savings rate hovers around 0.45% APY, high-yield accounts at online banks typically offer 4-5% APY — roughly 10x more. The tradeoff is that most high-yield accounts are at online-only banks without physical branches.
How much can you earn?
On a $10,000 balance at 4.50% APY, you'd earn approximately $450 per year in interest — compared to just $42 at a traditional bank paying the FDIC national average of 0.42%. Over 5 years, that's roughly $2,040 in extra interest. Use our compound interest calculator to see exactly how your savings would grow at different rates.