High-Yield Savings Account — Financial Glossary
Definition: A savings account that pays a significantly higher interest rate than a traditional savings account.
What is a high-yield savings account?
A high-yield savings account (HYSA) is a type of savings account that offers an interest rate many times higher than a traditional savings account. While a typical bank savings account might offer 0.01–0.10% APY, high-yield accounts commonly offer 4.00–5.00% APY or more.
Where to find them
High-yield savings accounts are most commonly offered by online banks, which have lower overhead costs and can pass the savings on to customers in the form of higher rates.
Key features
- FDIC insured up to $250,000
- No minimum balance at many online banks
- Easy online access and transfers
- Great for emergency funds and short-term savings goals
Use our Savings Calculator to see how much your money can grow in a high-yield account.