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- High-yield savings accounts can earn significantly more interest on cash you need in the short term.
- Dozens of banks offer high-yield savings accounts, but we compared three of the most popular.
- Remember that interest rates fluctuate. Make sure the account you choose meets your other needs.
Whether you're building up an emergency fund or saving for a down payment on a house (or both), a high-yield savings account can be a great tool for getting closer to those goals.
To help you figure out your high-yield savings account options, we compared three of the most popular high-yield savings accounts on offer today: the
Below you'll find each of these high-yield savings accounts compared on a variety of metrics.
Ally | Marcus High Yield Savings | Wealthfront | |
| Type of financial institution | Online bank | Investment bank | Banking service |
| Annual percentage yield (APY) | |||
| Minimum opening deposit | $0 | $0 | $1 |
| Service fees | $0 | $0 | $0 |
| Debit card or checks | No | No | Debit card |
| Mobile app | Yes | Yes | Yes |
| FDIC insurance coverage amount | $250,000 | $250,000 | $3 million |
| Checking account available | Yes | No | Account has checking features |
| Customer service | 24/7 by phone, email, or chat | By phone only; M-F 8 a.m.-10 p.m. ET, Sat.-Sun. 9 a.m.-7 p.m. ET | 24/7 by email; unspecified phone hours |
| Next steps |
You may notice the interest rates vary among these accounts. That's because interest rates on savings accounts fluctuate depending on inflation and the government's interest-rate benchmark.
Choosing the account with the highest interest rate today is a fine decision, but know that the rate offered when you open the account isn't locked in. In short, ensure the account is otherwise desirable — it has low fees, for example — before parking your savings there.
Across the board, high-yield savings accounts offer better rates than a traditional savings account. Hence: high-yield — so you've already made progress toward automatically building wealth by keeping your money there, regardless of how the rate shifts over time.
Many of us make the mistake of being paralyzed by indecision when it comes to money. Not saving because we don't know how much to save, not investing because we can't figure out the best way to invest, or losing money to fees and inflation because we won't choose a better bank account — I've been there and chances are you have, too. Don't let that hinder you from building wealth.
As financial expert and bestselling author Ramit Sethi puts it, "The single most important factor to getting rich is getting started, not being the smartest person in the room." Choose an account with little fees and high earning potential, Sethi says, and move on.