Guides / Where to keep it
High-yield savings accounts explained
Higher interest, same safety, a little less instant.
High-yield savings accounts, often offered by online banks and credit unions, can pay much more interest than a typical savings account. For many people they're a good home for an emergency fund.
What to compare
- The interest rate (APY), and whether it's a short-term promotional rate
- Monthly fees and minimum balance rules (look for none)
- How long transfers to your checking account take
- FDIC or NCUA insurance
- Limits on withdrawals per month
Good to know
- Rates on savings accounts are variable and can change at any time
- Interest earned is generally taxable income
- Transfers can take one to three business days, so keep a little in checking for immediate needs
General information. Compare current rates and terms directly with banks and credit unions. Penny Vaults isn't paid by any bank or lender.