When saving for a rainy day or a major purchase like a house or car, you might consider opening a high-yield savings account (HYSA). These accounts work almost identically to traditional savings accounts, except for one important detail: the interest they earn.
Many high-yield savings accounts earn 10 times or more interest than a typical savings account. And while opening a high-interest savings account should look familiar if you’ve opened a checking or savings account before, educating yourself can make the process even easier.
Here’s what you’ll need to open an account and start earning a competitive rate on your savings.
Opening a high-yield savings account is a fairly simple process. It can be done in person, online or by phone, depending on the bank. These are the general steps you should follow when opening a new account:
What is the best savings account for you? The answer lies in what your savings goals are and how you plan to use the funds.
Most savings accounts offer interest on your balance, and the total return is represented by your annual percentage yield (APY). Savings account rates are variable, meaning they can change at any time based on market trends. However, the average savings account rate is just 0.38%, according to data collected by the Federal Deposit Insurance Corporation.
On the other hand, a high-yield savings account can offer a significantly higher return. In fact, these accounts can pay interest rates as high as 4% APY. That’s why it’s important to shop around and compare accounts before opening one.
However, keep in mind that APY is not the only account feature you should consider. Choosing the specific high-yield savings account that’s right for you depends on exactly how you plan to manage that account.
For example, if you only have a few dollars to save right now, you may want to stay away from a yield savings account that requires a sizable initial deposit or minimum balance. Failure to maintain a large balance could result in fees or loss of the highest APY available.
If there’s a chance you’ll need to withdraw money from your savings account to pay monthly bills or to stay afloat between paychecks, don’t choose a savings account with a monthly withdrawal limit. Exceeding this limit (which is typically six per statement cycle) could result in your account being closed or converted to a transactional (checking) account. You may also be subject to sanctions.
Other features to consider include extended customer service hours, sign-up bonuses, or linked checking accounts.
High-yield savings accounts can be found at most types of financial institutions and each has its advantages and disadvantages. Here are some places to look for the best high-yield savings accounts:
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online banks: Many online-only banks offer the highest rates for savings accounts because they have lower overhead costs than traditional banks. The downside is that you can’t visit a physical branch if you want to do your banking in person. Some well-known online banks include Ally Bank, Discover Bank, and Capital One.
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Credit unions: Many credit unions also offer competitive interest rates on high-yield savings accounts. Credit unions are nonprofit institutions that tend to return their savings to their members in the form of better rates and lower fees.
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Traditional banks with online divisions: Although traditional banks are not typically known for offering the most competitive rates, some do offer high-yield savings accounts through their online divisions. For example, CIT Bank* and VIO Bank, which are affiliated with larger, well-known institutions, offer higher rates through their online savings accounts.
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Fintech companies and neobanks: Increasingly, fintech companies and digital-only banks (also known as neobanks) are offering high-yield savings accounts with competitive rates. Examples include Chime and SoFi.
*Platinum Savings is a tiered interest rate account. Interest is paid on the total account balance based on the interest rate and APY in effect that day for the balance level associated with the account balance at the end of the day. *APY: Annual percentage yields are accurate as of November 20, 2025: 0.25% APY on balances from $0.01 to $4,999.99; 3.75% APY on balances of $5,000.00 or more. Interest rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum savings account is $100. For a complete list of account details and fees, please see our Personal Account Disclosures.
Some banks will allow you to open a new high-yield savings account online, while others may require you to visit a branch and open your new account in person. This information will usually appear on the bank’s website, although you can also call customer service and ask.
Depending on the financial institution and whether you already have other products or accounts there, you may also be able to open a new high-yield savings account through their web portal or mobile app with just a few clicks.
Just like opening a traditional checking or savings account, you’ll need to provide the bank with certain personal and financial information.
Most require that you provide the following to open a HYSA:
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A government ID with your legal name and date of birth, such as a driver’s license, state ID, military ID, passport, permanent resident card, or consular ID.
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Your Social Security number or Individual Taxpayer Identification Number (ITIN)
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Your address (including a previous address if you have lived in your home for a shorter period)
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Your home phone number
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An email address
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Debit card information, a money order, or the routing and account numbers for a separate bank account if you need a deposit to open the account.
Read more: What do you need to open a bank account?
Depending on the bank or your personal preferences, you may be able to complete the application online, in person, or over the phone. If you prefer to open the account in person, you can schedule an appointment online or by phone at a local bank branch, if one is available.
To complete the online application, you will need to create a login and then provide information such as your name, date of birth, Social Security number, address, phone number, email address, citizenship status, employment status, and potentially the name of your employer.
In some cases, you may need to fax or email additional information, such as a copy of your driver’s license. Additionally, if the bank has a physical location, you may have to enter the bank to finish opening your account. You may also need to complete a bank signature card and mail it before using the account.
Once you have completed the application and met the minimum deposit requirements, if applicable, the bank will activate your account. Some accounts are ready to use within minutes of approval, while others will take a day or even longer.
Some banks require you to make an initial deposit before you can start using your high-yield savings account.
Typically, the easiest ways to fund your HYSA include depositing a check from a separate checking account using your bank’s mobile app, mailing a check to the bank, or setting up a transfer from a separate checking or savings account. To set up a transfer, you will need to provide the routing and account number of the account you want to withdraw money from. You may also need to verify your login information on this external account.
Opening a savings account is the first step in saving for the future, whether for a specific goal or to provide your family with a financial safety net.
The next step? Manage and maintain that account in the months and years to come.
Determine how much you want to add to your savings account and when you want to do it.
One of the easiest ways to ensure your balance grows steadily over time is to set up automatic contributions. Your employer may allow you to split direct deposits into different accounts, or you can set up a recurring transfer from your regular checking account to your savings account.
You should have beneficiaries for all of your bank accounts to ensure that if you die, the funds are transferred to the right people. If you didn’t select a beneficiary when you applied for the account, it’s a good idea to do so as soon as possible.
You will need to know your beneficiary’s Social Security number to add them to the account. Many banks allow you to do this online, but in some cases, you may need to call the bank.
Read more: What happens to a bank account when someone dies?
Once your account is open, you can download your bank’s mobile app, which may offer useful online banking services such as mobile check deposit.
Be sure to create a strong password, set up two-factor authentication, and familiarize yourself with all the app’s features.
Read more: Top 10 Mobile Banking Apps of 2025
If you don’t want paper bank statements sent to your home, you can sign up to receive electronic statements through the bank’s website or app. Your financial institution may even require you to sign up for e-statements to avoid fees or get the highest advertised interest rate.
You can set up account alerts (email, text messages, and/or app notifications) to let you know when certain transactions occur. This not only helps you monitor your account balance, but can also be a good way to catch any suspicious activity early.
Many banks offer free budgeting tools or other free financial tools to help you track your account, save for different goals, and visualize your progress. Seeing how your contributions help you get closer to your goals can motivate you to stay the course.
To open a savings account, you’ll typically need to have a few key documents on hand to prove your identity, such as a driver’s license and Social Security number. If your bank requires a minimum opening deposit, you will also need to have those funds ready to add to your new account.
The best bank to open a savings account depends on the features that are most important to you. If you’re not sure where to start, you can see our ranking of the 10 best high-yield savings accounts here.
You don’t need a fixed amount to have a savings account. Many banks and credit unions offer free savings accounts or accounts that require as little as $1 to open and earn interest, while others may require $100 or more. Of course, the more money you have in a savings account, the more interest you can earn over time.