What is a High-Yield Savings Account?

A high-yield savings account is a savings account that typically offers a higher interest rate compared to traditional savings accounts. High-yield savings accounts let you earn more in interest and could help you reach your financial goals sooner.

What are the benefits of a high-yield savings account?

Earn more: High-yield savings accounts can make it easier for you to reach your financial goals by letting you earn more interest on your savings. Compared to standard savings accounts, high-yield savings accounts will often have higher interest rates.

Easily access your money: Most high-yield savings accounts also make it easy for you to access your funds. They don’t require a long-term commitment. However, some high-yield savings accounts may offer more limited access to funds compared to standard savings accounts.

FDIC-insured: High-yield savings accounts may be FDIC-insured up to FDIC limits. While researching savings accounts, make sure to check whether deposits are FDIC-insured. To learn more visit www.fdic.gov.

What to look for when opening a high-yield savings account

Some key features to review when selecting a high-yield savings account are:

  • Overall interest rate and the annual percentage yield or APY
  • Requirements for opening, such as minimum deposit or current banking relationship
  • Requirements for maintaining the account, such as minimum ongoing balance
  • Fees for withdrawals, transfers or dropping below a minimum balance
  • How easy it is to access your money
  • Automatic deposit and other features

Can high-yield savings accounts' interest rates change?

Most high-yield savings accounts have variable interest rates. That means rates can fluctuate at any time after account opening, which most banks change at their discretion.

If you would prefer to lock in a guaranteed interest rate for an extended period, you may want to consider a Certificate of Deposit (CD) instead.

How to open a high-yield savings account

After you've pinpointed the best account for your needs and interests, applying is simple. You can visit your financial institution's website to find out if a high-yield savings account is available in your area and follow the online instructions.

Many banks require applicants for a savings account to be a U.S. citizen or resident and at least 18 years old. You'll need to provide a physical U.S. address and Social Security number.

Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to describe or indicate the availability of any Citi product or service. You should refer to the terms and conditions financial institution provide for various products.

Additional Resources

  • Utilize these resources to help you assess your current finances & plan for the future.

  • Learn how FICO® Scores are determined, why they matter and more.

  • Review financial terms & definitions to help you better understand credit & finances.