Experian — one of the three major credit reporting bureaus — recently expanded its product offerings to include a competitive high-yield savings account.

Known as the Experian Smart Money™ Digital Savings Account, this account allows users to earn up to 4% APY on their savings — one of the highest savings interest rates available today.

“We know saving is imperative for many people and this will help make it effortless so they can reach their goals faster,” said Sean Healey, general manager of digital products, Experian Consumer Services at Experian, in a statement. “Experian is committed to giving people smarter ways to manage their money as their financial co-pilot, and now they have even more opportunities to build a financial cushion.”

But with dozens of high-yield savings accounts on the market already, how does this newest offering from Experian stack up? And could it be a good fit for you?

The Experian Smart Money Digital Savings Account offers a tiered interest rate based on Experian membership status. Premium members qualify for up to 4% APY, while other tiers earn 2% or 3% APY.

Keep in mind that making changes to your Experian membership can impact the APY, interest rate, and other features of the account. Your APY may also be lower during membership trial periods.

Regardless of membership tier, there is no minimum deposit required to open an account (though your balance must be at least $0.01 to earn interest) and no monthly fees. Interest on this account compounds daily and is credited monthly.

It’s important to note that Experian is not a bank and does not manage the savings account directly. Banking services are provided by Community Federal Savings Bank; funds in Smart Money accounts are held in a pooled deposit account at Community Federal Savings Bank and are insured up to $250,000 per account ownership category.

Even at the lowest tier, Experian’s high-yield savings account offers a competitive APY. The national average savings account rate is currently just 0.39%. Meanwhile, Experian customers can earn 5-10 times this average, depending on membership tier.

That said, there are a few other high-yield savings accounts that pay comparable rates and may even offer similar features — without the need to enroll in or pay for a membership. Examples include:

SoFi High Yield Savings: Up to 4% APY

Barclays Bank Tiered Savings: Up to 4% APY

Valley Bank Direct High-Yield Savings: Up to 4% APY

Everbank: 3.9% APY

The Smart Money account has no monthly fees and no minimum balance requirements, which makes it accessible for beginners or anyone who wants a low-maintenance place to park cash. That said, because it’s integrated into Experian memberships, the account may be most appealing to people who already use Experian tools to track their credit or manage their finances in one place. Otherwise, the cost of membership may outweigh the benefits of earning a higher rate.

When choosing a high-yield savings account, it’s important to consider more than just the interest rate. You should also look closely at fees, minimum balance requirements, and any hoops you need to jump through to earn the top rate. Consider convenience factors too — such as mobile tools, transfer speed, and ATM access.

Remember when you could find high-yield savings accounts (HYSAs) that earned upwards of 5% APY? It seems those days are behind us, at least for now.

Every time the Federal Reserve makes a rate cut — which it is likely to do at least once more before the end of the year — rates drop on HYSAs and other deposit accounts, making them less attractive tools for saving.

With that said, you can still earn 4% or more on a few HYSAs, which is far more than you'll earn on a regular savings or checking account. And compared to other banking and investment options, high-yield savings accounts remain one of the best places to safely store savings while earning a competitive interest rate. Here’s why.

For money you want to save for a few months or more — such as your emergency savings fund or money you're saving for an upcoming purchase — a high-yield savings account remains one of the best options.

Yes, rates have dropped on high-yield savings accounts, but they're certainly not "low." Looking back at recent years can help put things into perspective.

In 2018 and 2019, the best high-yield savings account offered just over 2% APY. By 2020, you were lucky to find any account with over 1% APY.

Even if rates drop further, HYSAs will continue to do what they do best: offer higher returns than most types of bank accounts.

For example, as of September 2025, the national average rate on checking accounts is 0.07%, and on savings it's 0.4%. At the same time, you can find dozens of HYSAs that pay 4% APY and up.

HYSAs are good accounts for most, but not all, savers. They pay competitive interest rates on deposits, but they also have limitations. Here's how you can decide if an HYSA is best for you:

As far as places to keep your savings, it's hard to beat an HYSA — even when rates are generally low. For one, your money is protected against losses if the financial institution fails (as long as your account is held with an FDIC-insured bank or NCUA-insured credit union). Plus, you'll earn a rate of return that beats most other bank accounts.

HYSAs are ideal for money you don't need for day-to-day spending, but may need for an emergency; experts recommend setting aside at least three to six months' worth of your living expenses in an emergency fund. An HYSA is also ideal for storing funds you're saving for a specific upcoming expense, such as a car repair or a down payment on a home.

Read more: How much money should I have in an emergency savings account?

High-yield savings accounts are designed to hold your savings. For money you want to use day to day, an HYSA is not the right choice, since there can be limits on your withdrawals and transfers. A checking account or possibly even a money market account would be a better choice.

Read more: The 10 best high-yield online checking accounts available today

For funds you want to invest long-term, you'll also want to look elsewhere. You can earn higher rates of return by investing in the stock market via your retirement account, especially if you have an employer match.

A few other drawbacks of HYSAs to consider:

Variable rates: The interest rates are variable, meaning they can drop in the future at the bank's discretion.

Access: Most HYSAs are available through online banks, which don't typically offer in-person banking or ATM cards.

If you want competitive interest rates, but an HYSA isn't right for you, there are other bank accounts worth considering. Both of these types of deposit accounts earn rates similar to HYSAs, but they have different benefits:

Money market account (MMA): Unlike high-yield savings accounts, money market accounts usually come with checks and debit cards. They're also easier to find through traditional banks.

Certificate of deposit (CD): Interest rates on HYSAs are variable, but you can lock in a competitive interest rate for a set period of time with a CD. The downside is that if you withdraw money from your CD before the maturity date, you’ll have to pay a penalty.

Shopping around for better savings account interest rates? You might be tempted to close your current high-yield savings account (HYSA) and move your money to a new one offering a higher APY or better perks.

But before you close your account, it’s worth asking: Should you actually shut down your old HYSA, or simply open the new one and keep both? The answer depends on factors such as fees, account requirements, and how you manage your savings goals.

Keeping your existing high-yield savings account can have a few practical benefits. Before you close the old account, consider these perks you could gain by keeping it open.

If you want to save money for more than one financial goal, having multiple savings accounts can help keep your savings separated and make it easier to track your progress.

For example, let's say you want to take a family vacation this winter, but you're also saving for a down payment on a house next summer. Keeping the vacation and down payment funds in separate HYSAs will help you avoid overestimating how much you have saved for each expense, and it will prevent you from accidentally spending your down payment funds on your vacation.

Depositing your money into multiple HYSAs can give you more protection in the event your financial institution fails.

Federal deposit insurance guarantees your funds up to $250,000 per depositor, per institution. So if you have more than $250,000 in savings, it could be a strategic move to spread the money across multiple accounts at different banks or credit unions.

Read more: How to insure deposits over $250,000

Some HYSAs have "rate tiers," meaning they have different interest rates that apply to different amounts you have on deposit. For example, you might earn 3% APY on the first $50,000 you deposit to the account, and 1% on every dollar over that amount.

If you have a HYSA with rate tiers, spreading your money across multiple accounts could help you earn more interest.

A HYSA can serve as a form of overdraft protection. If you link your HYSA to a checking account, the bank can draw funds from the HYSA to cover overdrafts from your checking account. However, this only works if both accounts are at the same bank. So when you open a HYSA at a new bank, you may want to leave some money in the old account where your checking account is held.

Does your old HYSA have an account closing fee? It's worth finding out before you close the account.

These fees usually apply if you close your account within a few months of opening it. For example, BMO charges $50 if you close certain accounts within 90 days of opening.

Paying the fee could mean losing all the interest you've earned, so instead of closing your old account right away, you may want to give it some time.

For most people, the most practical approach will be to close the old HYSA within a month or so of opening the new one. Here are some reasons to shut down the old account.

If you have no specific use for the old HYSA, it's best to close the account. You might be tempted to leave it open and ignore it, but that's a risky thing to do.

Let's say, for example, an unexpected overdraft charge comes through from your linked checking account. If this happens, you could incur a bill and interest charges without your knowledge. Then, if the bill goes unpaid, the account could be closed by the bank and reported to ChexSystems, making it difficult for you to open new bank accounts in the future.

Instead of taking that risk, close the account on your own terms and avoid unwanted financial issues.

If there are monthly account fees on the old account, it's probably worth closing, especially if they exceed the interest you earn. On top of monthly fees, you'll also need to pay attention to other penalties. Some banks charge a fee if you drop below a minimum deposit, or if you carry a $0 balance.

It might sound counterintuitive, but there is such a thing as having too much money in savings.

Savings accounts are built to hold your emergency fund, and your savings for purchases you plan to make within the next couple of years or less. For anything beyond that, your money is better off somewhere else.

Instead of leaving your spare savings in the old HYSA, consider moving it to a CD or Treasury bill, where it can earn more interest. If you don't need the money for the next few years or more, consider a higher-earning, longer-term investment like your retirement account.

Read more: How to close a bank account: A step-by-step guide

Moving your money to a HYSA at a new bank can be a bit tedious. Here's how to go about it the right way, so you can avoid losing money or incurring unnecessary fees:

Choose an account: Compare multiple accounts to find the best HYSA based on account fees, interest rates, and access to the bank.

Apply for an account: Follow the bank's instructions to apply for an account. You usually need to provide your Social Security number, a copy of your photo ID, and a utility bill or other proof of your address.

Deposit money: Next, you’ll need to fund the new account. This can often be done by transferring money from another bank account or sending in a check. Be sure to pay attention to any minimum deposit requirements or balance limits so you can avoid fees.

Update your automatic transactions: Before closing the old account, update any automatic payments or deposits and ensure all of these transactions are rerouted to your new HYSA.

Wait at least 30 days: Take at least one month to monitor the old HYSA and make sure there aren't any transactions going through. During that time, it's a good idea to leave a cushion of money in the account to cover any unexpected charges. Once you're sure the account is dormant, withdraw the remaining funds.

Close the old account: Contact your old bank and follow their instructions to close the account. The bank may require you to send a request in writing. Be sure to get a confirmation note from the bank and keep it for your records.

Read more: How to switch banks

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 November 20, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.75% 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.