
A high-yield savings account is a federally insured account to store your cash that will earn an annual percentage yield several times higher than the average savings account. Oftentimes, high-yield savings accounts are available at online-only banks or credit unions such as Ally, Alliant Credit Union or Panacea Financial that don’t maintain physical branches.
As with traditional savings accounts, high-yield savings accounts earn a variable interest rate that can change at any time, and you can deposit or withdraw money as needed. It’s always a good idea to choose a high-yield savings account that doesn’t charge a monthly service fee or require a minimum balance.