Most of us have our savings in a regular bank account, earning almost nothing. Right now, the average savings account in the U.S. only pays around 0.42% interest per year. That’s barely anything. But high-yield savings accounts are offering a much better deal—somewhere between 3.5% and 4.5% interest. That’s about ten times more. To put it in perspective: if you’ve got $10,000 in a regular account, you might earn just $42 in a year. But in a high-yield account, you could make $400 or more—without doing anything extra.
A lot of people don’t realize there is a better option out there. In this guide, we’ll break down how these accounts work, what makes them different, and why they might be a smart move in 2025. We’ll also look at some solid options like Synchrony Bank, Marcus by Goldman Sachs, and American Express National Bank, and touch on a few other choices like CDs and money market accounts to help you decide what works best for you.
Learn more: Tips to Save Money for Your Big Financial Goals
What Is a High-Yield Savings Account?
Think of a high-yield savings account as your regular savings account’s overachieving sibling. It pays way more interest—often 4% or higher compared to the national average of 0.42%. These accounts are usually offered by online banks or credit unions, which don’t have branches because they run lean, they can give you a better return.
How Does a High-Yield Savings Account Work?
You deposit your cash, and the bank pays you interest based on the APY, usually calculated daily or monthly and credited monthly. So, $5,000 at a 4% APY earns you $200 in a year, while a 0.42% account gives you just $21. Your money is safe, too. If the bank or credit union ever shuts down, up to $250,000 of your savings is protected by government insurance.
There is just one thing to keep in mind—most high-yield savings accounts limit you to six withdrawals a month because of federal rules. Also, the interest rate isn’t locked in forever. It can go up or down depending on the economy. Right now, in May 2025, rates are pretty strong with the Fed holding steady at 4.25% to 4.50%. Still, it’s a good idea to check in now and then. A lot of people have missed out on better returns just because they didn’t notice their rate dropped.
Top High-Yield Savings Accounts of 2025
After looking around at what’s out there, three savings accounts really stood out for offering good rates, useful features, and being easy to manage: Synchrony Bank, Marcus by Goldman Sachs, and American Express National Bank. Here’s what makes them worth checking out.
Synchrony Bank High-Yield Savings Account
Synchrony offers a solid 4.00% APY in 2025, which is a good deal. There are no monthly fees and no minimum balance to worry about. One standout feature is that you actually get an ATM card which is rarely offered by savings account. That means you can take out cash when you need it, and they’ll even reimburse up to $5 a month in out-of-network ATM fees.
Customer support is available during the week until 10 p.m. ET, and on weekends until 5 p.m., which is helpful. Just keep in mind—it’s an online-only bank. So, no cash deposits and no checking account. Some people try workarounds, like depositing cash at another bank and transferring it in, but honestly, it is a bit of a hassle. Still, if you’re mainly looking for a high rate and some flexibility, Synchrony is a strong option.
Marcus by Goldman Sachs High-Yield Online Savings Account
Marcus offers a 3.75% APY; not quite as high as Synchrony, but still a good deal. There are no fees, no minimum balance, and the best part is you can get unlimited withdrawals. That’s great if you need to access your savings now and then.
Their customer support is available 24/7, so they can solve your queries anytime. They also scored well in a 2024 J.D. Power survey for customer satisfaction; which shows that a lot of people are happy with them.
So, only disadvantage of Marcus is that it does not offer ATM card or checking account, so if you need your money, you’ll usually wait a day or two for a transfer. Marcus keeps things super simple, which is great—but adding ATM access would definitely make it even better.
American Express National Bank High-Yield Savings Account
American Express is offering a 3.60% APY. Their online banking is smooth and easy to use, and the 24/7 customer support is a nice bonus. You can call anytime and actually get help, even in the middle of the night.
There are no monthly fees or minimum balance requirements, and you can connect up to three outside bank accounts for easy transfers. Like Marcus, though, there is no ATM card or check-writing feature, so getting quick access to cash might take a day or two.
If you already have an Amex credit card, their rewards checking account works well alongside this savings option. Overall, it’s a great option if you want a clean, simple online experience from someone you can trust.
Pros and Cons of High-Yield Savings Accounts
No financial product is perfect, so let’s talk about the upsides and downsides of high-yield savings accounts to see if they’re your speed.
Pros
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Higher Earnings: With APYs around 4%, your money grows faster than in a standard account.
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Fee-Free: Most online banks skip monthly fees or minimum balance requirements, which is music to my ears.
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Flexible Access: You can grab your cash (within limits) without penalties, unlike CDs.
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Safe and Sound: FDIC or NCUA insurance covers up to $250,000, so you’re protected.
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Compounding Boost: Daily or monthly compounding means your interest earns more interest over time.
Cons
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Shifting Rates: APYs aren’t fixed and can drop if the Fed cuts rates, which is always a worry.
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Withdrawal Caps: Most accounts limit you to six withdrawals a month, though Marcus is more lenient.
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No Physical Banks: Online banks like Synchrony and Marcus mean no branches for cash deposits or face-to-face help.
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Taxable Interest: You do pay taxes on high-yield savings account interest. Earn over $10, and you’ll get a 1099-INT for your taxes.
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Not for Big Wins: These accounts are safe but won’t match the long-term growth of riskier investments like stocks.
High-Yield Savings Account vs. CD
Choosing between a high-yield savings account and a certificate of deposit (CD) can feel like picking between a wallet you can access anytime and a locked piggy bank. Both are FDIC-insured, but they’re built for different proposes.
A high-yield savings account lets you add or withdraw money (up to six times a month) without penalties, but the rate can change. Whereas, CDs lock your cash for a set term (six months to five years) with a fixed APY. For example, Synchrony’s CDs offer rates between 0.25% and 4.25%, depending on the term. But if you take your money out early, you’ll usually pay a penalty—sometimes losing 90 to 365 days’ worth of interest.
I tried a CD once for a year-long goal, but when my car broke down, I regretted not having access. Savings accounts are better for emergency funds; CDs suit money you can leave alone, like saving for a big trip.
Money Market Account vs. High-Yield Savings Account
A money market account is like a savings account with a few extra perks. It usually pays more interest than a regular checking account. They often come with ATM cards or check-writing but their APYs are usually lower than high-yield savings accounts. They might also require higher balances to avoid fees.
High-yield accounts, like Marcus’s, focus on higher rates and fewer fees but skip the important features like ATMs or checks. If you want max returns and don’t need instant cash access, high-yield is good to go.
A money market account could be a better option if you want your money to earn more, but also stay within reach. While high-yield savings works well for reaching savings goals, some folks prefer the added flexibility that comes with a money market account—and that makes sense.
High-Yield Savings Accounts for Businesses
If you run a business, a high-yield savings account can help your extra cash grow instead of just sitting there. Not all banks offer business-specific accounts—places like Synchrony and Marcus usually focus on personal savings. But some banks, like Live Oak Bank, have accounts made just for businesses. They often come with no monthly fees and pretty good interest rates.
These accounts are perfect for setting aside money for emergencies or saving up for new equipment. One small bakery owner I know uses hers to cover surprise supplier costs—and it’s saved her more than once.
Before taking decision, just make sure to check the fine print, like how many transactions you’re allowed and whether your business qualifies, so there are no surprises later.
High-Yield Savings Accounts at Credit Unions
Credit unions are member-owned, which usually means better interest rates and lower fees than big banks. For example, Alliant Credit Union offers a solid 3.80% APY—if you qualify. That might mean joining a partner organization or meeting certain membership rules. Moreover, your money is safe too—just like with banks, credit unions are insured (by the NCUA) for up to $250,000.
The downside of having high yield account at credit union is that you might have to live in a certain area or meet other requirements to join. And while the personal touch is great, their online tools aren’t always the smoothest. Some people love the welcoming atmosphere, but the apps and websites can feel a bit outdated compared to bigger names like American Express.
Do You Pay Taxes on High-Yield Savings Account Interest?
Yup, Uncle Sam wants his cut. Interest from high-yield savings accounts is taxed as regular income. If you earn more than $10 a year—like $400 on $10,000 at 4% APY—you’ll get a 1099-INT form for tax season. Accounts in IRAs, like Synchrony’s options, might let you defer taxes, but most are taxed yearly.
Conclusion
In 2025, high-yield savings accounts are a smart move for growing your money without stress. Synchrony Bank’s 4.00% APY and ATM access make it great for flexibility. Marcus by Goldman Sachs’s 3.75% APY and unlimited withdrawals are perfect if you need quick access. American Express National Bank’s 3.60% APY and smooth digital banking suit tech-savvy savers. Compare rates, check for fees, and pick what fits your life—emergency fund, business savings, or a credit union vibe. Rates might change, so jump on the best ones now. Head to Synchrony, Marcus, or American Express’s websites, or check out a local credit union to start earning more.
FAQs
What’s the difference between a high-yield savings account and a regular one?
High-yield savings accounts are like finding a better coffee shop that charges less but serves stronger brews—think 3.5% to 4.5% APY versus the 0.42% you get from a typical bank. They’re often online-only, so you miss out on branches but save on fees. I ditched my old bank’s savings account after seeing my balance barely budge; the switch felt like giving my money a raise.
Is my money safe in a high-yield savings account?
Your cash is rock-solid if the account has FDIC or NCUA insurance, covering up to $250,000 per depositor. If the bank or credit union flops, you’re still good. I always check the insurance badge on a bank’s website—it’s like making sure the lock on your front door works before leaving town.
Can I lose money in a high-yield savings account?
You won’t lose what you put in unless you pull it out, but the interest rate can dip if the economy shifts, like when the Fed tweaked rates a while back and my earnings took a hit. With insurance, your deposit’s safe, but your returns might not always be as juicy. It’s steady, not a wild rollercoaster.
How often can I access my money?
Most accounts cap you at six withdrawals or transfers a month because of some old federal rule, which can be annoying if you’re moving money around a lot. Some banks, like Marcus, don’t care and let you withdraw whenever. I got stung once by a fee for going over the limit—now I plan my moves like a chess game.
Are these accounts good for long-term savings?
They’re perfect for stuff like emergency funds or saving for a new couch since you can grab your cash without hassle. For big dreams like buying a house in ten years, investments might grow faster, but they’re riskier. I keep my “life happens” fund in one of these and sleep better knowing it’s there.
Can I use a high-yield savings account for my business?
Some banks are cool with using personal accounts for business, and places like Live Oak Bank have business-specific ones with decent rates. They’re great for stashing extra cash for things like new equipment, but you gotta watch for withdrawal limits or eligibility quirks. My cousin runs a food truck and uses one to cover surprise repair bills—it’s been a lifesaver.
