Best High-Yield Savings Accounts — July 2025

If you're concerned about inflation, finding a savings vehicle that outpaces it can help. High-yield saving accounts offer you a healthy rate of return, with no effort on your end.

And this marks an excellent time to do so as the Federal Reserve hasn't cut rates this year. However, it's possible things change before the end of the year. The "dot plot" from the latest Fed meeting indicates the central bank might cut rates twice this year, so if you want to earn higher rates of return, now is the time to do so.

Here's a look at some of our top choices of high-yield savings accounts you can open now:

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Rates on high-yield savings accounts are always changing, so a good way to check the most up-to-date rates is by using our savings tool, below, powered by Bankrate:

What are high-yield savings accounts?

Essentially, high-yield savings accounts are the same as traditional savings accounts with one key difference — high-yield savings accounts pay a higher-than-average APY on deposits, meaning you'll be able to accrue more cash over time. And they're great options if you're looking for a risk-free way to maximize your savings.

Most high-yield savings accounts are federally insured, keeping your savings secure if your bank or credit union fails. If you open an account through a bank, the FDIC will protect up to $250,000 in individual deposit accounts and up to $250,000 for each person's share of joint accounts.

For accounts opened with a credit union, the NCUA will protect up to $250,000 per credit union member (whether in an individual or a joint account).

Unlike CDs, in which your cash is locked away for a fixed period, high-yield savings accounts let you easily access the funds in your account.

For this reason, they're good options for short-term savings goals or emergency funds. Plus, sometimes these accounts offer a savings account bonus, putting more money in your pocket.

Ways to use high-yield savings accounts

These accounts allow you to set savings goals for short or longer term purchases. Whether you want to save for a dream vacation, a retirement party or even have some money set aside to start your business in retirement, high-yield savings accounts can help you reach your goals quicker.

Pros and cons of high-yield savings accounts

As with all savings products, there are pros and cons associated with high-yield savings accounts. It's important to compare all aspects of an account to make sure it meets your needs before opening it.

Pros:

• Higher APYs: Since high-yield savings accounts have higher APYs than traditional savings accounts, you’ll accrue more interest over time. Plus, interest in these accounts is compounded daily.
• Safety: Many high-yield accounts are FDIC or NCUA insured, meaning that if something were to happen to the bank (or credit union) your account is with, your money will still be safe.
• Accessibility: While there are limitations to the number of free withdrawals you can make from a savings account, your money is still readily accessible whenever needed.

Cons:

• Harder to access than traditional savings accounts: If you have a savings account with a different bank than your checking account, you may have to wait a few days for funds to transfer from one to the other. Plus, you won't be able to easily view account details for both accounts in one place unless you have the right budgeting app.
• Not suited for long-term goals: If you're looking to save for long-term goals, like retirement, other investments, like stocks, are usually a better choice for your money. The rate of inflation can be higher than what you accrue in interest.
• Variable interest rates: Since interest rates are variable, the APY on the account can decrease from the rate it was when you opened the account if the Fed decides to cut rates in the future.
• Minimum deposit requirements and fees: Many high-yield savings accounts charge a monthly fee and/or require a minimum deposit to earn the advertised APY.
• Online banks: Since most high-yield accounts are offered by online banks, you likely won't have branch access. Therefore, contacting customer service or accessing a fee-free ATM might be more challenging.

Bottom line on high-yield savings accounts

Opening a high-yield savings account is an excellent option to consider. High-yield savings accounts offer higher rates than traditional savings accounts, meaning your cash will accrue more interest by simply sitting in a high-yield account than it would in a standard account. And there's no risk, either.

The downside? Since rates on high-yield savings accounts fluctuate with the market, take advantage of the best rates while you still can.

Related Content

• How to Decide Between a High-Yield Savings or a Money Market Account
• What is APY? Here's How to Score the Highest Rates
• The Best Savings Accounts to Get Post Fed Meeting