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    High-Yield Savings (HYSA)

    Earn $400/year on $10K instead of $1.

    Quick math

    $10,000 sitting in Bank of America savings = $1/year (0.01% APY). Same $10,000 in Ally Bank = $420/year. Most people leave $300-500/year on the table because they've never moved their savings.

    Ally Bank

    4.20% APY (2025)

    Best-known online bank. No fees, no minimums. Easy app. 24/7 phone support.

    Best overall.

    Marcus by Goldman Sachs

    4.40% APY

    Backed by Goldman Sachs. Slightly higher rate. Simple website.

    Best rate.

    Discover Online Savings

    4.00% APY

    Same Discover that does credit cards. Good integrated app.

    Best if you have Discover card.

    Capital One 360 Performance Savings

    4.00% APY

    Capital One brand. Has physical Cafés in major cities. Free ATM at Capital One.

    Best with branches.

    CIT Bank Platinum Savings

    4.55% APY (with $5K min)

    Highest rate (with minimum balance). FDIC insured.

    Best for $5K+ savers.

    Vanguard Cash Plus

    4.60% APY

    Tied to Vanguard brokerage. SIPC + FDIC. Best if you invest with Vanguard.

    Best for investors.

    Are these safe?

    • YES — all FDIC insured up to $250,000 per person per bank.
    • Same protection as Bank of America, Chase, Wells Fargo.
    • Online-only banks save money on branches → pass savings to you in higher rates.
    • If bank ever fails, FDIC pays you within 1-2 business days.
    • Don't exceed $250K at any single bank.

    How to open one

    1. Pick a bank (Ally is most senior-friendly).
    2. Go to bank's website. Click "Open an Account".
    3. Fill in name, address, SSN, email, phone.
    4. Link to existing checking account at any bank.
    5. Bank verifies via 2 small "test" deposits ($0.04 + $0.07).
    6. Confirm amounts back. Done.
    7. Transfer money in. Earns interest immediately.

    Keep checking at your old bank

    Don't move your CHECKING — keep that at your local bank. HYSA is just for savings. Transfers between them take 1-3 days. Set up auto-transfer monthly to "save without thinking".

    Watch the rate

    High-yield rates change with Fed rates. 4.5% today, could be 3% next year, 5% the year after. Check rates every 6 months. Switching banks is annoying but possible. Or just open a CD if rates start dropping (locks rate for 6-24 months).