What is a high-yield savings account? A high-yield savings account is a type of deposit account that allows you to keep money safe and withdraw cash while earning a higher amount of interest than a typical savings account. High yield accounts, also known as a high-rate savings accounts, are offered at many online banks and credit unions. Like traditional savings accounts, high-yield savings accounts are usually insured by the National Credit Union Administration (NCUA) at credit unions or the Federal Deposit Insurance Corporation (FDIC) at banks. They can also provide easy access to your money while earning you a great interest rate, making them a good spot to hold an emergency fund or savings for a large purchase in the near future. Some high-yield accounts have high deposit requirements or require direct deposits. However, it’s easy to find an account that doesn’t have those requirements.
