Accounts from FDIC-insured banks, compared on APY, minimum deposit and fees. You open the account directly with the bank.
E*TRADE
SoFi
Synchrony
Marcus
Barclays
American Express
Capital One¹ APY (annual percentage yield) as of the date shown on each account, from the bank's website or, where the bank doesn't publish a dated rate, from published rate listings. Rates are variable and can change before or after you open an account. This page doesn't include every savings account available. Bank names and logos are trademarks of their owners; showing them doesn't mean a bank endorses LanternRates.
We list savings accounts at FDIC-insured banks that are open to new customers. We compare APY, the deposit needed to open, the balance needed to earn the advertised rate, and monthly fees. When a rate depends on a promotion, direct deposit or a linked checking account, we say so on the account and show the rate you get afterward. Each APY shows the date it was last confirmed. When a bank pays us for a referral, that can affect which accounts appear and their order; it never changes the rates or terms we report.
One year, using each bank's APY above. Assumes no deposits or withdrawals and that the rate doesn't change.
For comparison, the FDIC's national average savings rate is far lower than any account on this page. See the FDIC's monthly national rates for the current figure.
Written by our editors. Updated October 19, 2026.
A high-yield savings account pays a higher interest rate than a standard savings account. Most are offered by online banks, which have lower branch costs. Both types are federally insured the same way, both let you withdraw, and both have variable rates. The difference is how much your balance earns.
On a $10,000 balance, the gap between a 0.50% APY and a 4.00% APY is $350 a year. On an emergency fund that sits untouched for years, that difference adds up.
What you usually give up is a branch. Moving money to an outside checking account often takes one to two business days, so keep a small cushion in checking for same-day needs.
APY, or annual percentage yield, is the yearly return including compounding. If your balance stays the same for a full year, the interest you earn equals the balance times the APY. $25,000 at 4.00% APY earns about $1,000 in a year, or roughly $83 a month.
Because APY already folds compounding in, you can compare any two accounts directly by their APY.
Savings rates are variable. If the bank cuts its rate in month four, you earn the lower rate from that point on.
Deposits at an FDIC-member bank are insured up to $250,000 per depositor, per bank, for each ownership category, whether the bank has branches or not. A joint account with two owners is covered up to $500,000. You can confirm a bank on the FDIC BankFind tool.
Be careful with fintech apps that are not banks themselves. When the middleware company Synapse went bankrupt in 2024, customers of several apps lost access to their funds for months, and FDIC insurance did not apply because no bank failed.
Look for the bank's legal name and "Member FDIC" on the account page before you deposit.
A common guideline is three to six months of essential expenses: rent or mortgage, utilities, food, insurance, transportation and minimum debt payments. If those come to $3,500 a month, the target is $10,500 to $21,000.
Aim for the higher end if your income varies, you are the only earner in your household, or you work in an industry with frequent layoffs.
A high-yield savings account fits this money well: it is insured, you can reach it in a day or two, and it earns a competitive rate while it waits.
Use a high-yield savings account for money you may need any time, a CD for money you can lock away for a set term in exchange for a fixed rate, and a money market account if you want savings with check-writing or a debit card.
CDs usually charge an early withdrawal penalty, often several months of interest, so only lock in money you are sure you won't need before the term ends.
A money market account is a bank deposit and is FDIC-insured. A money market fund is an investment sold by brokers and is not FDIC-insured, even though the names are similar.
Yes. In the U.S., savings interest is generally taxed as ordinary income in the year it is paid to you. Banks send Form 1099-INT if you earn $10 or more, and you owe the tax even if you never withdraw the interest.
Most states tax savings interest too. Interest from U.S. Treasury bills is the exception: it is taxed federally but exempt from state and local income tax.
This is general information, not tax advice. A tax professional can tell you how it applies to you.
How much to save for emergencies, how to get there on a normal budget, and why a high-yield savings account is usually the right place for the money.
What FDIC insurance covers, how the $250,000 limit applies to joint and trust accounts, and the gaps to watch for with fintech savings apps.
How high-yield savings accounts, CDs and money market accounts differ on rate, access and risk, and how to split cash between them.