How to Choose the Best High-Yield Savings Account (HYSA)
A high-yield savings account earns you more interest than a regular savings account. That is its whole job. While the national average sits around 0.40%, the best HYSAs in June 2025 are offering up to 5.00%. That is a huge difference for doing nothing but parking your money.
If you want your cash to grow without risk, picking the right HYSA is your best bet.
Annual Percentage Yield (APY)
The first thing you should check is the APY, or Annual Percentage Yield. This is the actual amount of interest you will earn over a year. The higher, the better. Varo Bank is topping the chart with 5.00% on balances up to $5,000. That means $250 in interest, just for leaving your money alone.
Axos Bank follows with 4.66%, though you will need to keep at least $1,500 in the account.
Keep in mind, APYs can change anytime, depending on what the Federal Reserve does with interest rates. So, go for a strong rate, but don’t obsess over a few tenths of a percent unless you are storing a big balance.
Look at the Minimum Balance Rules
Olly / Pexels / If you are just starting out or plan to use your savings in the short term, go for an HYSA with no balance hurdles.
Not all high-yield savings accounts let you earn that high APY right away. Some have minimum balance requirements. For example, Axos Bank only gives you 4.66% if you keep at least $1,500 in there. On the other hand, EverBank gives you 4.30% with no minimums at all.
Accounts like Varo, EverBank, and SoFi let you earn interest from dollar one. That is a win for people who want flexibility without being penalized for low balances.
Watch Out for Fees and Limits
Some banks sneak in fees that eat away at your interest. You might see monthly maintenance fees or charges if you make too many withdrawals. Most online high-yield savings accounts skip those, but traditional banks often don’t. EverBank is a good example of a no-fee option with a strong reputation.
Also, some banks still limit how many times you can pull money out each month. It is no longer federal rule, but some places kept it anyway. If you plan to move money around often, check the fine print. And if you want access to your money via ATMs, make sure the bank offers that or reimburses fees like Discover and Synchrony do.
Make Sure Your Money Is Protected
Only use banks that are FDIC-insured (or NCUA for credit unions). That means your money is safe up to $250,000 per person, per bank. If you have more than that to stash, split it between different institutions.
Tima / Pexels / Make sure to choose banks that are FDIC-insured, and your money is protected.
Remember, you are not investing in stocks here. You are earning interest with zero risk. That safety net is what makes high-yield savings accounts perfect for emergency funds and short-term goals. But only if the bank is insured. Always double-check.
Perks Can Make or Break the Deal
A high APY is nice, but extras can sweeten the pot. SoFi, for instance, offers a $300 bonus if you set up direct deposit. That is a solid chunk of change for something you were probably going to do anyway. Axos also rewards you by bundling your checking and savings together.
Mobile apps matter, too. If you hate clunky interfaces, go with banks like Varo or Discover, which have highly rated apps. You will check your savings more often, and that is good for your money habits.
Match It to Your Money Goals
What are you saving for? If it is an emergency fund, experts say you should stash three to six months of expenses somewhere safe and easy to reach. A high-yield savings account is perfect for that. Your money grows while staying fully liquid.
If you are saving for a vacation, home down payment, or car, HYSAs give you a risk-free way to grow your funds a little faster.