Savings accounts are built to help you grow your balance over time and reach your goals. As such, your bank or credit union might impose certain limits and restrictions to prevent you from dipping into your funds too often, also known as withdrawal limits.

These limits aren’t meant to stop you from accessing your funds altogether, but they do help you keep track of your spending and keep you accountable toward your savings goals.

Withdrawal limits are typically set at six penalty-free withdrawals per month from your savings account or money market account. Before the coronavirus pandemic, this limit was set by the Federal Reserve, known as Federal Regulation D.

Regulation D requires that an account, to be classified as a ‘‘savings deposit,’’ must not permit more than six convenient transfers or withdrawals per month from the account. Transfers and withdrawals that are considered ‘‘convenient’’ when “made by preauthorized, automatic, telephonic agreement, order or instruction, or by check, debit card, or similar order made by the depositor and payable to third parties.”

Withdrawal limits aren’t just a tool for you to keep your spending in check; they’re also put in place to ensure that your bank meets its reserve requirements and always has enough money for its day-to-day operations.

In 2020, the Fed rolled back this regulation to provide consumers with some financial relief. Still, many financial institutions have opted to keep this limit in place.

Note that federal withdrawal limits don’t include ATM or in-person bank withdrawals toward your limit. However, it does include online transfers, transfers made over the phone, withdrawals made by a check, outgoing wire transfers, Zelle payments from your savings account, or transfers made from your savings account to a checking account to cover an overdraft.

If you make more than the maximum number of withdrawals from your savings account within a given month, you could face steep penalties such as:

Withdrawal fees: Your bank may charge a fee for exceeding the six-per-month limit during a given month or statement period. This fee might be expressed as a flat dollar amount or as a percentage of the amount withdrawn.

Interest rate reduction: If you’re currently putting your savings in a high-yield savings account, your bank might reduce the interest rate if you’re making too many withdrawals and hitting your transaction limit. This could significantly impact your savings potential over time.

Account restrictions: If your bank notices that you’re making a habit of going over your withdrawal limit, it may start to impose restrictions on your account and prevent you from making any more withdrawals for the rest of the given statement period.

Account closure: Your bank may also explore the possibility of closing your account altogether. This isn’t a first resort, but it’s not totally outside the realm of possibility if you’re repeatedly going over your limit or breaking any other rules in your account agreement.

Excess withdrawal fees can eat into your savings and make it harder to build up your account balance and reach your goals. However, you can use strategies to avoid hitting the limit set by your financial institution.

If you absolutely need to dip into your savings, it could make more sense to make one large withdrawal to cover your expense, rather than withdrawing a small amount and realizing you’ll need more money within your statement period.

Recurring payments taken out of your savings account will count toward your withdrawal limit. For example, say you have a student loan payment or car payment coming out of your savings account each month — that will limit the number of withdrawals you can make from your account. Instead, set up recurring payments to come out of your checking account, which is meant to handle everyday transactions.

Transfers made between accounts count toward your overall withdrawal limit. Make it a priority to regularly check your account balances for all of your deposit accounts. That way, you can be sure you won’t need to dip into your savings account in a pinch to cover an overdraft in your checking account.

Savings accounts should be used to save for emergencies or long-term goals, not for your regular expenses.

If you find yourself constantly dipping into your savings account and hitting your withdrawal limit, it could mean that a savings account isn’t the right fit for all of your banking needs. Perhaps you should focus on finding a different type of bank account, such as a checking account that offers more convenient transactions and won’t limit the number of withdrawals you’re allowed.

It could also mean that you need to revisit how much you’re putting away in your savings account and adjust that amount to have plenty of funds on hand to cover your expenses.

Ultimately, keeping your savings account withdrawals to a minimum is meant to encourage you to save, which will pay off in the long run and keep you on track to hit your goals. However, these limits can come back to haunt you if you’re leaning too heavily on your savings to make ends meet.

If that’s you, revisit your account agreement to determine what your limit is and whether or not that’s realistic for your personal finances. If it’s not, you might need to rethink how you’re covering your expenses each month and whether it’s time to consider a different type of account or budgeting strategy.

Today, the national average interest rate for savings accounts is just 0.40%, according to the FDIC. But that doesn’t mean you’re stuck earning a low rate on your savings.

Many banks and credit unions offer high-yield savings accounts with an annual percentage yield (APY) of 4% or more, allowing you to maximize your savings potential and hit your savings goals even faster.

Here’s a look at some of the top federally insured high-yield savings accounts available today that currently offer 4% APY and higher.

Note that interest rates, fees, and requirements are accurate as of the publish date. Please verify account details directly with the financial institution.

Digital Federal Credit Union (DCU) offers a high-yield savings account with the highest APY on our list at 5.5%. The catch: This rate only applies to balances up to $1,000; balances above $1,000 earn 0.05% APY. Even so, this great rate could get the ball rolling on growing your savings.

The minimum deposit needed to open this account is $5.00, and there's no monthly maintenance fee or minimum balance required to earn the disclosed APY. Eligibility for membership with DCU is determined by a prospective member’s relationship to a current member, employment at an eligible company, geographic area, or involvement in qualifying organizations.

Varo Bank’s High-Yield Savings Account offers an attractive 5% APY on balances up to $5,000 (balances over this threshold earn 2.5% APY). There’s no minimum balance required and no monthly fees. This account also allows for automatic round-ups to give your savings a boost over time.

Read our full review of Varo Bank

​The Pibank Savings account offers a competitive 4.6% APY with no fees or minimum balance requirements. Interest accrues daily and is credited monthly on the 15th.

The AlumniFi Savings account is a tiered account that pays higher interest on higher balances:

Tier 1 (up to $24,999): 4% APY

Tier 2 ($25,000 to $99,999): 4.25% APY

Tier 3 ($100,000 and up): 4.5% APY

AlumniFi accounts are held at Michigan State University Federal Credit Union where savings are federally insured to at least $250,000 by the NCUA.

FitnessBank — a division of Affinity Bank — is a new online lifestyle bank. The Fitness Savings Account requires a minimum opening deposit of $100. There is a $10 maintenance fee, which can be waived with a $100 minimum average daily balance. Customers who also open an Elite Checking account can boost their rate to 4.85% APY.

BrioDirect’s High-Yield Savings Account boasts 4.3% APY with no monthly maintenance fees. You need a minimum of $5,000 to open this account and must maintain at least $25 to earn the disclosed APY.

Read our full review of BrioDirect

Bread Savings’ High-yield Savings Account offers 4.25% APY with no monthly fees. You must deposit a minimum of $100 to open an account. Interest is compounded daily and credited monthly.

Read our full review of Bread Savings

The Ivy Bank High-Yield Savings Account offers 4.25% APY on balances of $2,500 and up (balances below this threshold earn 0.05% APY). Interest is compounded daily and credited monthly.

The Premier Online Savings Account from Poppy Bank offers a competitive 4.25% APY. This rate only applies to accounts opened online, and a minimum balance of $1,000 must be maintained to obtain the advertised rate.

Read our full review of Poppy Bank

The Jenius Bank Savings account offers an impressive 4.2% APY with no minimum deposit or minimum balance requirement. There are also no monthly fees, and customer service representatives are available 24/7.

Read our full review of Jenius Bank

LendingClub’s LevelUp Savings account currently offers 4.2% APY with no minimum balance required. But in order to earn the highest advertised rate, you must deposit at least $250 to the account monthly. If you miss a month, your balance will earn 3.2% APY instead.

There are no monthly fees associated with this savings account. Interest is compounded daily and credited monthly.

Read our full review of LendingClub Bank

First Foundation Bank’s Online Savings Account offers 4.1% APY with no monthly maintenance fees. The minimum opening deposit is $1,000, and you must maintain at least $0.01 to earn interest.

Read our full review of First Foundation Bank

Popular Direct’s Select Savings Account currently offers 4.05% APY with a minimum opening deposit of $100 and no monthly fees. You must maintain at least $0.01 in your account to earn interest.

Read our full review of Popular Direct

Bask Bank’s Interest Savings Account offers 4.05% APY with no monthly account fees or minimum deposit requirements. However, it’s important to note that Bask Bank does not offer ATM or debit cards, so withdrawals must be made electronically or via wire transfer.

Read our full review of Bask Bank

EverBank’s Performance Savings pays 4.05% APY on all balances. There is no monthly maintenance fee or minimum balance requirement. This account is completely free to open, and interest is compounded daily.

Read our full review of EverBank

Live Oak Bank’s High Yield Savings Account pays 4% APY — more than 10 times the national average. There is no minimum opening deposit requirement for this account. However, you must keep at least $0.01 in your account to continue to earn interest.

Read our full review of CIT Bank

Financial technology company Current offers a bank account with sub-accounts known as "Savings Pods." You can earn 4% APY on up to $2,000 per Savings Pod ($6,000 maximum) by direct depositing at least $200 monthly (you'll earn 0.25% APY if the requirement is not met). Balances above $6,000 do not earn interest.

The amount of interest you can earn with a rate of 4% depends on how much money you deposit. The more money you keep in your account, and the longer you hold it there, the more you stand to earn thanks to compound interest.

For example, if you deposited $1,000 into a 4% interest savings account that compounds interest daily and left the money there for one year, you'd earn a total of $40 in interest (assuming you don't make any additional contributions).

Let's say you deposited $10,000. At the end of the year, you'd earn $400 in interest. And if you made an additional $100 contribution each month, you'd end up with $421.84 in interest earnings.

Finding a savings account that pays 4% on your balance is a great way to give your savings a boost and help it grow over time. However, there are additional steps you can take to get the most value out of your account.

Start with a higher principal balance: The more money you deposit initially, the more interest you earn from the start.

Contribute regularly: Consider setting up automatic transfers to the savings account. Even small, consistent deposits can make a big difference over time. If you contribute $100 monthly — that’s an extra $1,200 per year that earns 4% interest, which compounds to grow even more.

Take advantage of compound interest: Make sure the interest on your account compounds at least monthly, if not daily. The more frequently interest is compounded, the more your money will grow.

Keep your money in the account: Each time you withdraw funds from your savings account, the principal balance that earns interest decreases, which reduces the overall growth potential. A checking account or money market account may be a better fit for money you need for daily spending or paying bills.

Watch out for fees: Look for a savings account with no monthly maintenance fees or other charges that could eat into your interest. Some high-yield accounts have minimum balance requirements to avoid fees or earn the highest advertised rate, so be sure you can meet those minimums — or choose an account with no minimum balance requirement.

Savings accounts that offer 4% are becoming increasingly hard to find. Recent rate cuts by the Federal Reserve signal that the economy is moving in the right direction, but they also mean deposit account rates are on the decline.

Additional rate cuts could be on the horizon, so it pays to take advantage of an account with a higher rate while it lasts.

For those looking to maximize their savings, it might be wise to take advantage of current rates while they remain elevated. If you want to lock in today's higher rates, you may want to consider a certificate of deposit (CD) instead of a high-yield savings account.

Not everyone feels comfortable putting all their money into the stock market. Many folks aren’t interested in high-risk, high-reward strategies and want lower-risk options. That’s where savings accounts come in.

But not every savings account is created or managed the same way. Here’s a breakdown of high-yield savings accounts and traditional savings accounts to help you decide which is best for you.

A traditional savings account is a type of deposit account that earns interest. Unlike checking accounts, which are typically used to manage everyday transactions and short-term cash needs, savings accounts are designed to encourage keeping your money on deposit.

A high-yield savings account (HYSA) is very similar to a traditional savings account; the main difference, as the name implies, is that it typically offers a much higher annual percentage yield (APY) on the balance.

Today, the national average savings account rate is 0.4%, according to the FDIC. However, many traditional savings accounts at major banks pay as little as 0.01% APY. Meanwhile, some of the top HYSAs pay upwards of 4% APY — and, in some cases, even more.

High-yield savings accounts are usually offered by online banks (or through the online divisions of brick-and-mortar banks. For this reason, they often come with perks such as no monthly maintenance fees and lower minimum balance requirements.

The trade-off is that you can’t deposit cash directly, and transferring money to or from an external checking account may take a day or two. For people who are comfortable managing their finances online and want to maximize their earnings, HYSAs are often the clear winner.

Read more: How to deposit cash at an online bank

At their core, both traditional and high-yield savings accounts are designed to keep your money safe while paying you interest.

Both are typically insured up to $250,000 per depositor, per institution by the FDIC (at banks) or NCUA (at credit unions). That means your money is protected even if the financial institution fails.

Both also generally allow you to withdraw or transfer funds without restrictions, unlike certificates of deposit (CDs) or certain investment accounts. They’re considered low-risk, liquid places to store cash for emergencies, short-term goals, or general savings.

Read more: Can you lose money in a high-yield savings account?

If you’re on the fence about a traditional or high-yield savings account, there are a few ways to tell which one is right for you.

You want to maximize interest earnings: HYSAs often offer rates many times higher than traditional savings accounts, so your money grows faster. In fact, the best high-yield savings accounts pay as much as 4% APY or more.

You’re comfortable with online banking: Most high-yield savings accounts are offered by online banks, which usually don’t have physical branches. If you don’t need in-person service, this isn’t a drawback.

You want low fees: Many HYSAs don’t charge monthly maintenance fees or require large minimum balances.

You value branch access: If you want to walk into a physical bank to deposit or withdraw cash, a traditional savings account may be the better fit.

You need linked services: If you use the same bank for checking, loans, or a safe deposit box, a traditional savings account keeps everything in one place. Plus, you can easily set up automatic contributions to your savings account from your checking account that will show up instantaneously.

You prioritize convenience over earnings: If your savings account has a small balance, the difference in interest rates may not matter much to you.

When saving for a rainy day or a major purchase like a home or car, you might consider opening a high-yield savings account (HYSA). These accounts operate almost identically to traditional savings accounts, except for one major detail: the interest they earn.

Many high-yield savings accounts earn 10 times or more interest than a typical savings account. And while opening a high-interest savings account should feel familiar to you if you've opened a savings or checking account before, informing yourself can make the process go even more smoothly.

Here's what you'll need to open an account and start earning a competitive rate on your savings.

Opening a high-yield savings account is a pretty straightforward process. It can be done in person, online, or over the phone, depending on the bank. Here are the general steps you should follow when opening a new account:

What is the best savings account for you? The answer lies in what your savings goals are, and how you plan to use the funds.

Most savings accounts offer interest on your balance, with the total return represented by its annual percentage yield (APY). The rates on savings accounts are variable, meaning they can change at any time with market trends. However, the average savings account rate is only 0.38%, according to data gathered by the Federal Deposit Insurance Corp.

A high-yield savings account, on the other hand, can offer a significantly higher return. In fact, these accounts can pay interest rates as high as 4% APY. That’s why it’s important to shop around and compare accounts before opening one.

Keep in mind, however, that APY isn’t the only account feature you need to consider. Picking the specific high-yield savings account that’s right for you depends on exactly how you plan to manage that account.

For example, if you only have a few dollars to put in savings right now, you may want to stay away from a performance savings account that requires a hefty opening deposit or minimum balance. Failing to maintain a big balance could lead to fees or missing out on the highest APY available.

If there’s a chance you’ll need to pull from your savings account for monthly bills or to keep you afloat in between paychecks, don’t choose a savings account with a monthly withdrawal limit. Exceeding this limit (which is often six per statement cycle) could lead to your account being closed or converted to a transactional (checking) account. You might also be subject to penalties.

Other features to consider include extended customer service hours, sign-up bonuses, or linked checking accounts.

High-yield savings accounts can be found at most types of financial institutions, and each has its pros and cons. Here are a few places to look for the best high-yield savings accounts:

Online banks: Many online-only banks offer the highest savings account rates because they have lower overhead costs than traditional brick-and-mortar banks. The trade-off is that you can’t visit a physical branch if you want to do your banking in person. Some well-known online banks include Ally Bank, Discover Bank, and Capital One.

Credit Unions: Many credit unions also provide competitive interest rates on high-yield savings accounts. Credit unions are not-for-profit institutions that tend to pass their savings back to members in the form of better rates and lower fees.

Traditional banks with online divisions: Though traditional banks aren’t typically known for offering the most competitive rates, some do offer high-yield savings accounts through their online divisions. For example, CIT Bank* and VIO Bank, which are affiliated with larger, well-known institutions, offer higher rates through their online savings accounts.

Fintech companies and neobanks: Increasingly, financial technology companies and digital-only banks (also known as neobanks) offer high-yield savings accounts with competitive rates. Examples include Chime and SoFi.

*Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100. For complete list of account details and fees, see our Personal Account disclosures.

Some banks will allow you to open a new high-yield savings account online, while others may require you to visit a branch and open your new account in person. This information will usually be listed on the bank’s website, though you can also call customer service and ask.

Depending on the financial institution and whether you already have other products or accounts there, you may also be able to open a new high-yield savings account through your web portal or mobile app with just a few clicks.

Just like opening a traditional savings or checking account, you'll need to provide the bank with certain personal and financial information.

Most require you to provide the following to open an HYSA:

A government ID with your legal name and birth date — such as a driver's license, a state ID, a military ID, a passport, a permanent residency card, or a consular ID

Your Social Security number or Individual Taxpayer Identification Number (ITIN)

Your address (including a previous address if you've lived in your home for a shorter period)

Your home phone number

An email address

Debit card information, a money order, or the routing and account numbers for a separate bank account if you need a deposit to open the account

Read more: What do you need to open a bank account​?

Depending on the bank or your personal preference, you may be able to fill out the application online, in person, or by phone. If you'd prefer to open the account in person, you can make an appointment online or by phone at a local bank branch, if one is available.

To fill out the application online, you'll need to create a login and then provide information such as your name, birth date, Social Security number, address, phone number, email address, citizenship status, employment status, and potentially the name of your employer.

In some cases, you may have to fax or email additional information, such as a copy of your driver's license. In addition, if the bank has a physical location, you might have to come into the bank to finish opening your account. You might also have to fill out a bank signature card and mail it back before using the account.

Once you've completed the application and met the minimum deposit requirements, if any, the bank will activate your account. Some accounts are ready for use within minutes of approval, while others will take a day or even longer.

Some banks require you to make an initial deposit before you can start using your high-yield savings account.

Typically, the easiest ways to fund your HYSA include depositing a check from a separate checking account using your bank's mobile app, mailing a check to the bank, or setting up a transfer from a separate savings or checking account. To set up a transfer, you'll need to provide the routing and account number of the account where you want to pull the money. You might also need to verify your login information to this outside account.

Opening a savings account is the first step toward saving for the future, whether for a specific goal or giving your family a financial safety net.

The next step? Managing and maintaining that account in the months and years to come.

Determine how much you want to add to your savings account and when you want to do it.

One of the easiest ways to ensure your balance grows consistently over time is to set up automatic contributions. Your employer may allow you to split direct deposits to different accounts, or you could set up a recurring transfer from your regular checking account to savings.

You should have beneficiaries for all of your bank accounts to ensure that if you die, the funds are passed on to the right people. If you didn't select a beneficiary when you applied for the account, it's a good idea to do so as soon as possible.

You'll need to know your beneficiary's Social Security number to add them to the account. Many banks allow you to do this online, but in some cases, you may need to give the bank a call.

Read more: What happens to a bank account when somebody dies?

Once your account is open, you can download your bank's mobile app, which may offer helpful online banking services such as mobile check deposit.

Be sure to create a strong password, set up two-factor authentication, and familiarize yourself with all the features of the app.

Read more: 10 best mobile banking apps of 2025

If you don't want paper bank statements mailed to your home, you can sign up to receive e-statements through the bank's website or app. Your financial institution may even require enrolling in e-statements to avoid fees or earn the highest advertised interest rate.

You can set up account alerts (email, text, and/or app notifications) to let you know when certain transactions occur. This not only helps you keep tabs on your account balance, but also can be a good way to catch any suspicious activity early.

Many banks offer free budgeting tools or other free financial tools to help you keep track of your account, save for different goals, and visualize your progress. Seeing how your contributions are helping you move closer toward your goals can motivate you to stay the course.

To open a savings account, you’ll typically need a few key documents on hand to prove your identity, such as a driver’s license and Social Security number. If your bank has a minimum opening deposit requirement, you’ll also need to have those funds ready to addd to your new account.

The best bank to open a savings account depends on the features that are most important to you. If you aren’t sure where to start, you can see our ranking of the 10 best high-yield savings accounts here.

There’s no set amount needed to have a savings account. Many banks and credit unions offer free savings accounts or accounts that require as little as $1 to open and earn interest, while others may require $100 or more. Of course, the more money you have in a savings account, the more interest you can earn over time.