How to Open a High-Yield Savings Account

1. Compare High-Yield Savings Accounts

As you compare high-yield savings accounts from different financial institutions, focus on the following features:

• Annual percentage yield (APY): The APY shows how much interest your savings can earn in a year. Higher APYs mean more earnings. Some HYSAs offer APYs of 4% to 5%, while traditional savings accounts often offer less than 1%, according to Federal Deposit Insurance Corp. (FDIC) data. Online-only banks often offer the highest APYs because they have lower overhead costs than traditional banks.
• Opening deposit requirements: Many high-yield savings accounts can be opened with no deposit, but some require a deposit of $25, $100 or more.
• Easy access to funds: How quickly can you move money from your HYSA to a checking account? Does the bank have a convenient network of ATMs for fast access to cash?
• Insurance: Look for a bank insured by the FDIC or a credit union insured by the National Credit Union Administration (NCUA). FDIC- and NCUA-insured financial institutions guarantee your account for up to $250,000 per account owner and account type.

• Fees: Most HYSAs don't charge fees, but it's still important to check. Watch for:

  • Monthly maintenance fees
  • Minimum balance fees if your balance drops too low
  • Excess withdrawal fees if you go over any monthly limits
  • Overdraft fees if your balance dips below zero
  • ATM fees for using out-of-network ATMs
  • Inactivity fees if you don't use the account for six months

Learn more: How to Choose a High-Yield Savings Account

2. Gather Your Documents

Whether you're applying for a high-yield savings account in person or online, you'll typically need the following documents:

• Government-issued photo identification (a driver's license, state ID card, military ID or passport)
• Personal information including your birth date and Social Security number or Individual Taxpayer Identification Number (ITIN)
• Contact information (address, phone number, email)
• Proof of address (a utility bill, rental agreement or mortgage statement with your name on it)

Check the bank or credit union website to confirm the documents you need.

3. Apply for the Account

You can typically apply for a savings account online, but you can also make an appointment to do so in person if you prefer or if you plan to make your opening deposit in cash.

Completing an application for a bank account usually takes about 10 minutes. Depending on the bank or credit union, you may get an instant decision on your application, or you may have to wait a few business days.

Tip: Banks don't check your credit score when you apply for a savings account. Instead, they review your ChexSystems report, which contains information about your previous bank accounts. This won't affect your credit score, but if your ChexSystems report reveals a history of nonsufficient funds charges, overdrafts or unpaid bank fees, your application may be denied.

Learn more: Ways to Use a High-Yield Savings Account

4. Make the Opening Deposit

Many high-yield savings accounts don't require a minimum initial deposit; others have low minimums, such as $25. You can make an opening deposit using cash, mobile check deposit or a bank transfer from another financial institution. If you're making a bank transfer, have your account numbers and routing numbers ready, and be sure there's enough money in the account from which you're making the transfer.

Tip: Bank account activity isn't reported to credit bureaus and doesn't directly affect your credit scores. However, a savings account can indirectly benefit your credit by providing a financial cushion that helps ensure you can pay your debts.

5. Set Up the Online Features of Your Account

Once your high-yield savings account is open, take these steps to simplify banking:

• Download the bank's mobile app. On-the-go access to your accounts lets you easily stay on top of your savings.
• Protect your account. Set up multifactor authentication or a passkey (if available) on the bank's website and mobile app to help safeguard against fraud.
• Link your accounts. If your new account is at a different bank than your checking account, you'll need to link the two accounts to easily transfer money back and forth. You may also want to link your new account to any budgeting or payment apps you use.
• Set up account alerts. You can typically choose to get account alerts by text, email or push notification to help you track your savings progress and watch for potential fraud. For instance, you could set up an alert whenever your account balance drops below a certain amount, a deposit is made or a transfer or ATM transaction occurs.
• Automate your savings. Your employer may allow you to directly deposit part of your paycheck into your high-yield savings account. If not, you can set up automatic transfers from your checking account to your savings account on a regular basis, such as every payday. Automating transfers helps your savings grow consistently with no effort on your part.

Learn more: How to Manage Your Savings Account Effectively

Frequently Asked Questions

Open a Savings Account That Supports Your Goals

Making regular deposits to a high-yield savings account can be a simple, low-risk way to boost your financial health. The right account for you depends on your savings goals, finances and preferences.

If you're thinking about opening a high-yield savings account, the Experian Smart Money^™ Digital Savings Account offers competitive annual percentage yields (APYs)^|| based on your Experian membership status with no monthly fees^¶, minimum balance or direct deposit requirements. You can get an Experian Smart Money Digital Savings Account through your free or paid Experian membership, which also gives you access to your FICO^® Score^Θ, Experian credit report, credit monitoring and more. See terms at experian.com/legal.