Should I open a High Yield Savings Account? - 1/18/2026 by Steve Elliker

First, let's start with the basics. A High Yield Savings Account is like a regular savings account, although the interest rate is generally higher. Not all banks offer high yield savings accounts, but most offer a regular savings account. In today's market, it would be normal to see a bank offer a savings account with an interest rate (APY) of 0.05% or less. In contrast, a High Yield account may have a rate of around 3.5% or higher in today's market. 

If you have excess cash (beyond the cash you need to pay regular ongoing bills), you could consider opening a high yield savings account. If you have significant cash, it makes it a more compelling option. Our first suggestion is to simply ask your bank if they can put you in a high yield account that is comparable to the market. You never know what they might be able to offer. If you bank with a traditional bank, they may not offer this kind of product and they may instead offer you a CD. That is not the same thing, as your cash will be locked up for a certain period of time. So, where do you go to find the right high yield savings account?

Step 1
* Go to a reputable website that lists many options and quickly allows you to compare them side-by-side. Websites like NerdWallet.com or BankRate.com offer this search capability.

Step 2
* Look through the list of top rates. We would not recommend using a bank you have never heard of. Narrow the list down by seeing if they charge any fees, if they have a minimum balance, and what other conditions or terms may apply. If you already work with one of the institutions on the list, maybe there is incentive to keep things grouped together.

Step 3
* Once you have picked the institution you want to use, we suggest going directly to that company's website and applying for the account. It will most likely want to link to your existing bank account and it may take a few days to set up before it is good to go. Just remember that with this kind of account, your money may not be as readily available as your current account, because you have to request the money from the high yield account be moved to your normal account.

Questions? Please reach out to us at Steve@EllikerFinancial.com and we would be happy to chat.