Retirement & Savings

What Is a High-Yield Savings Account?

A high-yield savings account is a savings account that pays a notably higher interest rate than the national average for standard savings accounts. Many are offered by online banks with lower overhead. Rates are usually variable and can change as market interest rates change.

What to Compare

Accounts are typically compared by APY, fees, minimum balance requirements, and deposit insurance coverage.

Example

A 10,000 balance earning 4.00% APY grows by about 400 over a year if the rate stays the same, compared with about 50 at 0.50% APY. Because rates are variable, actual earnings depend on how the rate changes during the year.

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🔗 Related Terms

Savings Account APY (Annual Percentage Yield) Money Market Account Certificate of Deposit (CD)

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.