How High-Yield Savings Accounts Compare
The basic savings account has long been a staple for Americans. Federal deposit insurance has made them a safe and reliable way to grow your money while still retaining easy access when you need it. Traditional savings accounts offered great flexibility for savers whether they were looking to save up for education, holidays, a car, a home, or even just a rainy day. They still do, even if saving habits and preferences have changed quite a bit in recent decades.
The banking world witnessed a raft of innovations with the launch of the first exclusively online bank in 1999. This unique merger of technology and banking opened the floodgates to new and more competitive financial products and services. Online banks were free from the huge costs involved in running multiple branches and paying associated overheads. They introduced a new model that has enabled a generation of online banks to improve upon long-established standard practices and products in banking.
As a result, a new breed of savings and borrowing instruments were ushered in — ones that offered customers benefits beyond the reach of most traditional brick-and-mortar banks.
The high-yield savings account was one such innovation.
Key takeaways
What are high-yield savings accounts: They are savings products that offer far higher interest rates than traditional savings accounts.
How do high-yield savings accounts differ from standard savings accounts and how are they similar: Although there are similarities, high-yield savings accounts can be different from traditional savings accounts in more ways than one.
How do you pick the right high interest savings account: Know what factors to consider in picking the best high-yield saving account.
What is a savings account?
High-yield savings accounts (HYSAs) are distinct from regular savings accounts in that they typically reward customers with a higher rate of interest — often many times higher!
Interest rates offered by high-yield savings accounts have, in the past, been as much as 20 to 25 times higher than those offered by standard savings accounts. For instance, the average rate of interest on savings accounts hovered around 0.42% in summer 2023. In contrast, HYSAs were posting interest rates of up to 12 times higher during the same period.
They have become so popular that even traditional banks have started offering them to lure customers. On Raisin, our exclusive network of both digital-only banks traditional banks, and credit unions offer a range of high-yield savings accounts with competitive interest rates.
HYSAs share many similarities with standard savings accounts:
They both offer high-liquidity and are low-risk savings options that are similarly structured and regulated.
They are both federally insured for up to $250,000 per person, per account in FDIC member banks and NCUA-accredited credit unions.
Government mandates limit the number of withdrawals from either type of account to six per year, although some banks choose to waive this limit.
Because of these similarities, both types of savings accounts are considered highly attractive for short-term financial goals, like saving up for a big purchase or setting some money aside for a rainy day.
There can, however, be some minor points of difference between the two, besides the obvious differences in interest rates. Savers should be careful they understand these differences which often include minimum balance requirements , maintenance charges, and withdrawal fees. For high-yield savings accounts opened through Raisin, however, there are no minimum balance requirements, no maintenance fees, and no withdrawal fees.
What is the best high-yield savings account?
Perhaps the greatest draw of high interest savings accounts is that they bring better returns even during a recession.
Raisin lists some of the most competitive high-yield savings accounts available on its marketplace. In addition to offering market-leading rates, all of our offerings come from federally-insured banks and credit unions with years of experience behind them.
Using the table at the top of this page, you can estimate your annualized earnings based on current APYs by entering the amount you have to save in the field labeled “Deposit amount.”
High-Yield Savings Accounts vs. Traditional Savings Accounts
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How to Choose a Savings Account
The interest rate.
Usually expressed in terms of APY or annual percentage yield, a savings account’s interest rate tells you how much interest you earn on your savings. The higher the APY, the better performing the savings account is in terms of interest earnings. Unlike fixed-term savings products like CDs, savings accounts are likely to offer interest rates that are subject to fluctuation, often based on Federal Reserve benchmarks and prevailing market conditions.
Fees.
Nobody likes paying fees, even for a savings account with high interest. So choosing a savings account with few or no fees attached ensures nothing is eating away at your interest earnings. Some of the potential fees to watch out for include fees for going below a minimum deposit balance and fees for exceeding the limit on monthly withdrawals. Savings accounts through Raisin don’t charge any fees.
Withdrawal limits.
It’s common to see banks put a limit of six withdrawals or outbound transfers per month on savings accounts. Exceeding that limit may incur penalties. This is not, however, an industry-wide practice. So, make sure to investigate what, if any, withdrawal limits are placed on a savings account you’re considering. Again, withdrawals from savings accounts through Raisin are not subject to any withdrawal limits.
Deposit insurance.
One of the most important benefits of a savings account is the protection it offers through the stability of the bank itself, plus the deposit insurance backing that institution. Savings accounts with FDIC member banks and with NCUA-insured credit unions offer coverage of up to $250,000 per depositor, per account. Not every bank or credit union is federally insured, though. You must confirm whether your savings are insured before opting for a savings account. Fortunately, Raisin partners only with federally-insured financial institutions on its platform.
The bank behind the account.
While it’s not a factor that likely affects the function of a savings account itself, the values and mission of the bank behind it may be of importance to you. For instance, some banks are dedicated to community development, others have minority ownership, and some support causes like youth education or housing for underserved communities. Many customers take these considerations into account when choosing an institution to bank with.
How to Choose a High-Yield Savings Account
All it takes is an online search to be flooded with hundreds of high-yield savings account options from multiple banks, credit unions, and digital-first financial institutions. Picking the best high-yield savings account, however, will take deeper research than just a cursory glance at high-yield savings account rates.
Here are four important factors to consider besides high-yield savings account rates before you put your money in a high-yield savings account.
Deposit insurance
Earning a great interest rate on your savings at a bank or credit union can feel great, however it’s only made better with the assurance that that money is insured up to per-depositor, per-institution limits in case that institution fails. Making sure any institution where you open a high-yield savings account is either FDIC- or NCUA-insured is key for securing your savings. Fortunately, Raisin exclusively partners with federally insured financial institutions.
Fees structure
Lucrative interest rates on HYSAs can be severely undercut by high maintenance fees and minimum balance penalties. Evaluate each of these factors carefully and make sure they don’t eat into your interest returns. Again, no high-yield savings account offered through Raisin charges any fees and only has a $1 opening account balance minimum.
Liquidity
Be extra careful reading up on the terms and conditions surrounding the liquidity of your high interest savings account. Having easy access to funds can prove crucial during emergencies. Unlike accounts opened through Raisin, which have no limits on the number of withdrawals made per month, some banks or credit unions may impose monthly withdrawal limits on high-yield savings accounts.
Pick a bank, credit union, or digital-first bank that offers complete transparency over the terms and conditions surrounding its high-yield savings accounts. Doing sufficient research can prove key to maximizing your returns and having a satisfactory banking experience overall.
A partner that enables you to make the most of high-yield savings accounts
Picking the right high-yield savings account can be confusing at times and downright challenging at others.
The sheer variety of available options, the wildly attractive interest rates, and the dizzying maze of terms and conditions can be tough to navigate. You need a reliable partner to help you sort through the confusion.
At Raisin, we understand how some financial decision-making can be tough for even the most experienced of customers. That is why we have a high entry bar for all of the partner banks and credit unions available through our platform.
All our partner banks and credit unions are federally insured in addition to having long-established market reputations and credibility in serving their customers. The safety and security of your funds are top priorities for us, as is helping you manage your finances as easily as possible. Where else can you handle multiple accounts with different financial institutions from the ease of a single login?
Find out more about the competitive savings products and lending options on Raisin today!
What Is Raisin?
Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Safety
Funds deposited into any of the savings products available through on Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Choice
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
Convenience
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How Raisin Protects Your Money and Personal Information
Federal Deposit Insurance Corporation
All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.
Click to learn more about FDIC insuranceNational Credit Union Administration
All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.
Click to learn more about NCUA insuranceCybersecurity is a top priority at Raisin
We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include multi-factor authentication, encryption, and web application firewall advanced internet protection technologies. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.
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How Raisin Compares
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FAQs
Raisin is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
Raisin customers use the platform to fund federally insured deposit products offered by numerous U.S. banks and credit unions with a wide range of maturities and APYs (annual percentage yield), allowing you to build a savings strategy to suit your earning and liquidity needs.
Raisin is not a bank. It provides the digital “storefront” where banks and credit unions can promote their deposit products.
Raisin is operated by Raisin LLC, a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space. In the U.S., Raisin helps banks and credit unions improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks and NCUA insured credit unions.
Your Raisin account gives you access to savings accounts and certificates of deposit offered by a variety of banks and credit unions with the security of federal deposit insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account — with typically no restrictions on depositing and withdrawing funds — but earns interest (or dividends in the case of credit union savings products) at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest (or dividends) on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal without having to pay a penalty for the early termination. Terms and conditions may vary by product. Please see specific product terms for more details.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive APY (annual percentage yield) provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest (or dividend in the case of credit union savings products) is compounded daily and posted to your account monthly.
The short answer is yes! Raisin exclusively partners with FDIC-insured banks and NCUA-insured credit unions.
For Raisin customers who hold savings products offered by one of our partner banks, funds are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance. All deposits you have at a bank — whether made through Raisin or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
For Raisin customers who hold a savings product offered by one of our partner credit unions, funds are insured by the NCUA through its Share Insurance Fund. According to the NCUA, each credit union member has at least $250,000 in total coverage. The Share Insurance Fund insures individual accounts up to $250,000. Additionally, a member’s interest in all joint accounts combined is insured up to $250,000.
At Raisin, cybersecurity is our priority. Raisin is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The Raisin platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Web application firewall advanced internet protection technologies are implemented to protect Raisin.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
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A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank or credit union offering the savings product you selected.
Any questions or concerns? Email us at support.us@raisin.com.
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
For products offered by banks, all necessary registration is handled when you become a Raisin customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the Raisin network. When you select and fund a savings product offered by a credit union, there is an additional step of becoming a member. Raisin makes that process quick, easy and free. You still have one Raisin login and can view all your savings products in one convenient dashboard.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to Raisin. This information also appears on monthly statements.
You cannot currently link your Raisin account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank or credit union offering that product does so outside of the Raisin platform.
More on Savings and Money Market Accounts
Email: support.us@raisin.com
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The Raisin name and logo are trademarks of Raisin GmbH. All other trademarks, logos, marks, and brand names are the property of their respective owners — used with permission.
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*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank or an NCUA-insured credit union, and does not hold any customer funds. Funds deposited through Raisin are exclusively held at federally insured financial institutions. FDIC or NCUA deposit insurance coverage covers the failure of partner banks and credit unions on the Raisin platform.
Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City (CBKC), Member FDIC, d.b.a. Central Payments is the Service Bank. CBKC, Lewis & Clark Bank and Starion Bank, each Member FDIC, are the Custodial Banks.