How to open a high-yield savings account
To open an HYSA, fill out an online application form or visit a branch (if your chosen bank has them). Most of our top high-yield savings accounts have strong customer service departments that can assist you with any specific questions you have.
This process should be similar whether you open a savings account online or at a brick-and-mortar bank. You will need to provide some personal information, including your address, Social Security number, and a government-issued ID.
If you are opening a joint savings account, both parties will need to provide this information.
Should you get a high-yield savings account?
A high-yield savings account could be a great choice for you if you're looking for a place to house your emergency fund, as well as other money you plan to spend within the next five years or so. But these accounts aren't right for everyone.
Checking accounts are the better choice for everyday spending because they offer more withdrawal options and no limits on monthly withdrawals. Brokerage accounts are better for long-term savings because investments earn a lot more over the long term.
Ready to open an account? Start by checking out our list of the best high yield savings accounts (they offer the lowest fees and the highest rates of return). Then open an account online.
Alternatives to high-yield savings accounts
As you compare savings accounts, think about what you'll use the account for. Do you want to be able to withdraw your money at any time to cover unexpected expenses? Are you saving up for a major goal over several years, and could use every dollar of interest you can earn? Answering these questions will help you compare savings accounts and decide which is best for your needs.
Here's a look at the common types of savings accounts you'll run into.
Traditional savings account
Traditional savings accounts are usually easy to open and easy to access. But APYs tend to be pretty low compared with high-yield savings accounts, and most of these accounts carry maintenance fees if your balance falls below a certain amount.
Certificate of deposit (CD)
Certificates of deposit (CDs) usually offer some higher APYs than any of the high-yield savings accounts discussed above, especially with CDs offered by online banks. If you're looking for the best APY on a savings account, CDs are definitely worth considering. But you have to agree not to withdraw your funds for the full CD term (which could be months or years).
Money market account
Money market accounts offer the APYs of a savings account with the easier access of a checking account. However, these accounts usually have higher minimum balance requirements than typical high-yield savings accounts do.
Checking account
Some of our favorite online banks offer checking accounts, and many are excellent financial products. While some of the top checking accounts pay interest, you should expect a relatively low APY. Checking accounts are best suited for money that you'll need in the near future (such as for bills due soon), while high-yield savings accounts are designed for money that you might need to tap into on occasion.