5 Tips to Choose the Best High Yield Savings Account for You

Opening a high yield savings account (HYSA) may help accelerate your savings. However, savings accounts falling within the HYSA category typically differ in their rates, fees, and features, and those details affect how easily you can build and manage your money. These five tips can show you how to pick a HYSA that best supports your financial goals.

Key highlights

• The true earning potential of a HYSA becomes clearer when you compare annual percentage yields (APYs), which include the impact of compounding interest.
• The interest you earn depends partly on the fees and requirements associated with the account.
• Your savings may be better protected when the bank offers FDIC insurance and strong security features.
• A HYSA may be a better fit for you when the account includes additional features that support your savings habits.
  
  

Tip 1: Compare interest rates

Interest rates influence how quickly your balance may grow. A higher annual percentage yield — the rate that shows the effect of compound interest — means your money earns more without any extra effort on your part.¹
The key is to compare the APY rather than the nominal interest rate. Nominal rates do not reflect the effect of compounding. APY, on the other hand, shows compounding across a 360-day period (i.e., the “annual” measure), so it reflects how much you actually earn in a year.
Even a small difference in APY can have a meaningful impact over time. For example, if you put $5,000 in an account with a 4.00% APY, you could have around $5,624 after three years. At a 4.50% APY, you could have about $5,705. That’s an extra $80 earned even though the rates differ by only half a percentage point.

Examples are illustrative only; actual earnings depend on the APY, compounding, fees, and account terms. This example assumes no additional deposits or withdrawals during the three-year period and that the APY in the example did not change during the three-year period.

Tip 2: Consider fees and account requirements

A high APY may help your money grow, but bank fees can reduce the interest you earn. Common fees, such as monthly maintenance fees and excess withdrawal charges can chip away at your balance and offset growth.
Account requirements can also make it more difficult to earn the APY you expect. Some HYSAs only offer their top APY if you meet certain conditions, such as maintaining a minimum balance, making regular deposits, or linking another account. If you can’t meet those requirements consistently, you may receive a lower rate.
That said, account requirements and fees aren’t necessarily deal-breakers. What matters most is whether those conditions match how you want to manage your account. For example, the HYSA with a higher APY that requires a minimum balance or monthly deposit may be a good option if you're certain you can meet the requirement.

 

Tip 3: Check account accessibility

While a HYSA is a place to store money, having access to those funds can be important, especially if you are working on a short-term savings goal or building an emergency fund. Features like online and mobile banking, ATM access, and fast transfer capabilities help make sure your money is available when you need it. 
Evaluating features isn’t as simple as checking if they’re offered. You also want to make sure they’re convenient for how you already bank. Here are a few questions to ask yourself as you evaluate accessibility:

• Are there established limits on the number of withdrawals monthly?
• How long do transfers typically take?
• After a transfer is received by the bank, how long until I can withdraw it?
• Does this HYSA link to my existing checking account?
• Does the mobile app or online dashboard feel intuitive to use?

When a HYSA is convenient and easy to navigate, you may be more likely to check your balance, track progress, and maintain your savings habits.

Tip 4: Assess safety and insurance

Keeping your money safe starts with choosing a high yield savings account insured by the Federal Deposit Insurance Corporation (FDIC). Deposit accounts at FDIC-insured banks are protected for up to $250,000 per depositor, per bank, per ownership category.² If the bank fails, the FDIC may reimburse insured deposits up to applicable limits, subject to FDIC rules and processes.
After confirming that both the bank and the specific account are insured, you’ll also want to review how much insurance applies to your deposits. The $250,000 limit applies to each depositor, per ownership category, at each bank. If you plan to deposit more than the coverage limit, or if opening a HYSA means your combined deposits at one institution exceed $250,000, you may need to consider ways to maximize your coverage. 
Checking a bank’s security features is another important part of protecting your money. Most banks outline tools like fraud monitoring and two-factor authentication on their websites, which you can use to get a clearer sense of how the institution helps protect your account from unauthorized access.

Tip 5: Evaluate additional features and benefits

Extra perks can make a high yield savings account even more advantageous. Some, like budgeting features, are built into an account. Others are benefits a bank offers to all of its customers. Here are a few examples of features that could be the deciding factor when choosing a HYSA:

• Automatic savings tools like scheduled transfers and goal-based subaccounts to help you stay consistent with saving
• Short transfer hold times to help you move money quickly
• Mobile check deposit that lets you add funds without visiting a branch
• Customer support that connects you to a person quickly to resolve issues when you need help

 

A HYSA that pairs a strong rate with the features you value most can make saving simpler and more rewarding. As you compare accounts, think about which tools will support your habits and help you stay on track with your financial goals.

Get an Openbank High Yield Savings account

Choosing a high yield savings account is about more than finding the highest APY. The right HYSA combines competitive rates with tools that make saving easier.
With a top-tier rate, no fees, and FDIC insurance, an Openbank High Yield Savings account could help support your savings growth without added hurdles. Applying online only takes a few minutes.