What Is a High-Yield Savings Account? (And Why You Need One in 2025)
If your savings account pays less than 1%, you’re leaving money on the table. High-yield savings accounts (HYSAs) offer 3–5%+ APY with no risk or fees.
What Is a High-Yield Savings Account?
A HYSA pays much higher interest than traditional savings accounts, typically offered by online banks.
Benefits
- 📈 Up to 50x more interest
- 🛡️ FDIC insured
- 💳 No monthly fees
- 📲 24/7 mobile access
- 🔒 Ideal for emergency funds
Top HYSA Options in 2025
| Bank | APY | Fee | Min. Balance |
|---|---|---|---|
| UFB Direct | 5.25% | $0 | $0 |
| SoFi Bank | 4.60% | $0 | $0 |
| CIT Bank | 4.35% | $0 | $100 |
| Ally Bank | 4.00% | $0 | $0 |
Who Should Use a HYSA?
Anyone saving for emergencies, short-term goals, or wanting to beat inflation.
What It’s Not
- Not for everyday spending
- Not an investment account
- Not locked like CDs
How to Open One
- Pick a bank
- Submit your info
- Fund the account
- Automate savings
“Don’t work hard for your money — make your money work hard for you.”