Updated: Jul 09, 2025

You don’t need to be rich to earn money on your savings. Explore how high-yield savings accounts can help your balance grow faster, even if you’re starting with just a few dollars.

What Is APY and Why It Matters

APY stands for annual percentage yield. It’s the amount of interest you earn on your savings in one year, including compound interest. The higher the APY, the more money your savings will make—without you having to do anything extra.

Traditional savings accounts at big banks often offer APYs of just 0.01%. That means if you saved $1,000, you’d earn just 10 cents over the year. But high-yield savings accounts (HYSAs) can offer 4.00% or more, helping you earn $40 on the same amount.

Over time, that difference adds up. And since these accounts are usually FDIC-insured, your money is safe while it grows.

Best High-Yield Savings Accounts Right Now

UFB Direct
UFB offers one of the highest APYs on the market, often over 5.00%. There’s no monthly fee and no minimum balance, making it a solid option if you’re starting from scratch.

SoFi
SoFi’s online savings account currently offers up to 4.60% APY when you set up direct deposit. It also has no account fees, and users get access to tools for budgeting, investing, and even financial coaching.

Marcus by Goldman Sachs
This well-known online bank offers an APY around 4.40% with no monthly fees or minimum deposit requirements. Marcus also allows easy transfers between your checking account and savings.

Ally Bank
Ally’s savings account offers competitive interest (currently around 4.20%) and comes with no fees or minimum balance. It also includes tools like buckets for goal-based saving and automatic round-ups from checking.

Discover Bank
Discover offers around 4.25% APY on its online savings account. There are no monthly fees or minimum balance requirements, and the account includes access to 24/7 customer support.

American Express High Yield Savings
Amex’s savings account offers strong rates and no maintenance fees. While it doesn’t include a checking option, it’s a great place to park money you don’t need to access daily.

Capital One 360 Performance Savings
This account pays about 4.25% APY and offers a simple interface with no monthly fees. You can link it to your Capital One checking account for easy transfers.

What to Look for in a High-APY Savings Account

When comparing savings accounts, APY is important—but it’s not the only thing to consider. Make sure the account fits your needs and doesn’t sneak in extra costs.

Key things to check:

• No monthly maintenance fees

• No minimum balance requirement

• FDIC or NCUA insurance (up to $250,000 per depositor)

• Easy transfers to and from your checking account

• Good mobile or online banking features

• Access to customer support when needed

Many high-APY accounts are offered by online-only banks. That’s why they can pay more—they don’t have to cover the cost of physical branches.

How to Open an Account

Opening a high-yield savings account usually takes less than 10 minutes. Go to the bank’s website, choose “Open an Account,” and provide some basic information like your name, address, Social Security number, and a valid ID.

You’ll also need to link a checking account to fund your new savings account. Most banks let you transfer money electronically and set up automatic deposits if you want to grow your savings faster.

Once your account is open, you can check your balance, set up savings goals, and track interest earned—all from your phone or computer.

Why Now Is a Good Time to Open One

Interest rates have risen in recent years, which means banks are offering higher returns than they did a few years ago. That makes now a great time to move your money into an account that works harder for you.

Whether you’re saving for an emergency fund, a vacation, or just a rainy day, a high-yield account helps your money grow quietly in the background.

Even if you can only start with $50 or $100, you’ll earn more interest than if you left it sitting in a traditional bank with a near-zero rate.

How Much You Can Earn

Let’s say you save $1,000 in an account with a 4.50% APY and don’t add any more money for one year. You’d earn about $45 by the end of the year—compared to just 10 cents in a typical bank.

If you add $50 every month to that same account, you’d have about $1,677 by the end of the year, with around $52 of that coming from interest. Over five years, that adds up to nearly $3,500—just by saving consistently.

Combine High APY with Good Habits

The best way to take advantage of high APYs is to save regularly. Set up automatic transfers from your checking account every payday, even if it’s just $10 or $25 at a time.

You can also use your savings account as a place to stash:

• Your emergency fund

• Your tax refund

• Gifts or bonuses

• Side hustle income

Avoid dipping into the account unless it’s for a true emergency or specific goal. Letting your money sit and grow, untouched, is what makes compound interest work its magic.

Final Thoughts

High-yield savings accounts are one of the easiest ways to earn more money on what you already have. With no risk and no complicated rules, they’re a great choice whether you’re starting small or building a bigger financial cushion. By choosing the right account and saving consistently, you can grow your money faster and reach your goals sooner.