Everything You Need to Know About High-Yield Savings Accounts in August 2025
According to Federal Reserve Economic Data, the average American only manages to save 4.5% of their disposable income annually. With economic growth slowing and consumer prices going up, it's more important than ever to ensure your money is working harder for you.
More News from Barchart
Why This Cannabis Penny Stock Could Be Wall Street's Next Meme Trade Breakout
Apple Stock Is Gaining Momentum, Is AAPL Stock a Buy?
Peter Thiel-Backed Bullish Is About to IPO. Should You Buy BLSH Stock?
Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!
That's where a high-yield savings account (HYSA) comes to the rescue.
A HYSA leverages high interest rates to help you save more faster — which is perfect if you're looking to set up an emergency fund or have a specific savings goal in mind.
Read on to find out what a HYSA is, the key benefits of high-yield accounts, and get some of the best HYSA deals in August 2025.
What Is a High-Yield Savings Account?
A high-yield savings account (HYSA) is a savings product that offers substantially higher interest rates than traditional savings accounts.
High-yield accounts work a lot like traditional savings products. You can link existing checking accounts, make deposits, and withdraw your cash when you need it.
But banks offer better annual percentage yield (APY) rates on HYSAs for a couple of reasons.
The best high-yield account providers tend to be online-only challenger banks. They don't have physical branches, which means lower operating costs. To win business, those savings are then passed on to customers in the form of higher APYs.
High-yield accounts also tend to offer variable rates.
That means the rate you're shown when opening an account may fluctuate when the Federal Reserve changes its base borrowing rate. Rates can also shift in line with demand and each bank's respective growth strategy.
You should also bear in mind that some high-yield accounts have access limits.
For example, you might need to wait 1-2 working days to receive your funds after requesting a withdrawal. Many HYSA providers also impose monthly withdrawal limits.
What Are the Benefits of High-Yield Savings Accounts?
If you're debating whether to set up a HYSA, here's what makes high-yield accounts stand out:
Higher Interest Rates
The core benefit of a HYSA account is higher levels of compound interest.
According to the Federal Deposit Insurance Corporation, the average savings account yield in July 2025 was 0.38%. By contrast, some of the best high-yield accounts are paying over 4.00% APY.
That means you could earn up to seven times more on your deposit by placing it in a HYSA.
Low (Or No) Fees
Because many HYSA providers are online banks with few overheads, they can afford to drop monthly maintenance fees.
That makes saving cheap and simple.
Maintain Liquidity
A HYSA is an easy way to accumulate interest without sacrificing liquidity.
Unlike other high-interest savings products, the cash you deposit in a high-yield account is still accessible. Some online HYSAs take a couple working days to process withdrawals, but there's a growing range of accounts that offer instant 24/7 access.
Low-Risk
There's no such thing as a sure thing in markets. That's one reason savers turn to HYSAs.
The FDIC insures all balances of up to $250,000. Even if your online bank goes bust, you're not going to lose your deposit. That level of safety, paired with relatively high interest rates, makes high-yield accounts an attractive alternative to investing.
How to Open a High-Yield Savings Account?
Opening a high-yield savings account is typically a fast and straightforward process.
Here's how it works:
1. Pick Your Account Provider
Start by shopping around. Create a shortlist of savings providers and products, then compare:
APY
Deposit requirements
Account fees
Access rules
Stack these features against your savings goals and access requirements. Then, go for the account that looks like the best fit.
Don't be afraid to get in touch with providers to let them know you're shopping around. They may pull out some extra incentives.
2. Apply Online
After selecting the high-yield account you're after, it's time to apply.
You'll need to have documentation handy to complete the application. This will include your:
Full address
Social Security Number
Driver's license or passport
Most HYSA applications are online-only. They take a few minutes to complete, and approval is often instant.
3. Fund Your Account
After approval, you can immediately deposit money into your HYSA.
The easiest way to do this is by making an external bank transfer from an existing checking account. Some high-yield account providers will also offer ACH options.
After that, you can sit back, relax, and watch your savings build. Most HYSA providers compound interest and deposit interest payments on a monthly basis.
Which High-Yield Savings Account Is Right for You?
There are some attractive HYSA options available on the market in 2025.
To help you get started, here are some top picks that have no monthly fees:
Axos ONE® Savings: 4.46% APY with $1,500 minimum balance.
Peak Bank Envision Savings: 4.35% APY with $100 minimum balance.
EverBank Performance Savings: 4.30% APY with $0 minimum balance.
Bread Savings: 4.25% APY with $100 minimum balance.
Openbank High Yield Savings: 4.20% APY with $500 minimum balance.
CIT Bank Platinum Savings: 4.00% APY with $5,000 minimum balance.
Barclays Tiered Savings: 3.90% with $0 minimum balance.
Remember: These are the tip of the iceberg. There are loads of HYSAs to choose from, and the best fit for you will depend on a few factors.
Go for an account that offers a minimum balance you're comfortable with and accessibility rules that work for you. It's also important to look at fees. And if you'd like easy and regular contact with bank staff, you might need to trade in the highest possible APY that online-only banks offer.
Popular Alternatives to High-Yield Savings Accounts
Not sure if a HYSA is right for your savings strategy? Don't worry. There are several popular alternatives worth exploring:
Certificates of Deposit (CDs)
Certificates of Deposit (CDs) let you lock up your funds for a set term. This term can vary anywhere between three months and five years, and the rate is generally on par with a HYSA.
Unlike a high-yield account, a CD's interest rate is fixed for the duration of your term.
The catch: your deposit is inaccessible. Early withdrawals often lead to large fees or account closure.
Money Market Accounts (MMAs)
A money market account (MMA) essentially combines the features of a checking and savings account.
MMAs offer debit cards and can make transactions like a checking account. They also offer higher APY than a traditional savings account.
In exchange for added functionality, the APY on an MMA is normally lower than a HYSA or CD. Minimum balances and monthly maintenance fees are also common.
Treasury Bonds
Treasury Bonds are another easy way to put idle cash to work without shouldering much risk.
As of August 2025, US Series I Savings Bonds (I Bonds) are posting an average rate of 4.24%. Returns are adjusted for inflation, which makes bonds a relatively safe investment. Just remember you can't cash in a bond for 12 months — and if you cash in before the five-year mark, you'll lose three months of interest.
Start Saving Smart
At the end of the day, a high-yield account is an easy way to generate high levels of interest on your savings.
There's a wide range of HYSA products available that offer varying rates, deposit requirements, and access rules. So you should be able to find a solution that aligns with your savings strategy.
But don't forget to shop around. And if a high-yield savings account doesn't quite work for you, be sure to check out alternatives like CDs or MMAs so you can start cashing in on higher interest rates.
On the date of publication, Nash Riggins did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Merck & Co., Inc. (MRK) Impresses Jim Cramer With Its Toughness
We recently published . Merck & Co., Inc. (NYSE:MRK) is one of the stocks Jim Cramer recently discussed. Merck & Co., Inc. (NYSE:MRK)'s shares have lost 16% year-to-date as investors continue to be disappointed by the dropping revenue of its GARDASIL HPV drug in China. They are also worried about the patent expiration of the firm's mega cancer drug KEYTRUDA and wondering whether Merck & Co., Inc. (NYSE:MRK) will be able to follow up with an equally successful successor. However, the shares did gain 3% this week after Pfizer announced that its bladder cancer drug PADCEV improves survival rates when paired with KEYTRUDA. Cramer was impressed as he commented: 'Look at Merck. I mean, Saint Merck. What a tough, what a tough.' Photo by National Cancer Institute on Unsplash Here are his earlier comments about Merck & Co., Inc. (NYSE:MRK): 'Well, this GARDASIL, when is it? The Chinese are not really helping them sell, because you would have thought the Chinese would. . .and then you've got the KEYTRUDA, you know the patent cliff coming up. . .it's amazing, but they are talking about their animal division. When you're talking about your animal division you don't have enough [inaudible] to talk.' While we acknowledge the potential of MRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
4 minutes ago
- Yahoo
U.S. Alcohol Consumption Hits 90-Year Low - Zero-Proof Spirits Like Arkay and Beyond Spirits Are Filling the Gap
Health-conscious Americans are swapping liquor for plant-based, alcohol-free alternatives Miami, Florida--(Newsfile Corp. - August 15, 2025) - For the first time in nearly a century, alcohol consumption in the United States has fallen to historic lows. A surprising driver behind this shift? Younger, health-conscious consumers who are drinking less - or not at all - in favor of mindful, wellness-oriented lifestyles. This decline in traditional liquor sales is not a sign of the end for social drinking. Instead, it marks the beginning of a new era - one led by zero-proof spirits like Arkay Beverages and Beyond Spirits, the world's first plant-based, alcohol-free whisky. "We are witnessing the biggest drinking culture transformation in 90 years," said Reynald Vito Grattagliano, founder of Arkay Beverages and Beyond Spirits. "Consumers still want the taste, ritual, and social connection of spirits - but without the downsides of alcohol. Our zero-proof innovations deliver exactly that." According to industry analysts, several factors are fueling this trend: Gen Z & Millennials are choosing moderation and alcohol-free lifestyles at unprecedented rates. Health and wellness priorities are shifting spending toward low- and no-alcohol options. Innovation in taste and quality has made zero-proof spirits a viable alternative to traditional liquor. Arkay and Beyond Spirits stand at the forefront of this shift. Arkay offers a wide range of zero-proof alternatives to popular spirits - from whisky and rum to tequila and gin - all made without sugar, artificial sweeteners, or calories. Beyond Spirits takes plant-based innovation to the next level with its alcohol-free whisky crafted from 100% natural, sustainable ingredients. Why Zero-Proof Spirits Are the Future: Social without the hangover: Enjoy the experience of a night out without next-day regrets. Inclusive drinking culture: Alcohol-free options allow everyone to participate - from sober-curious to designated drivers. Better for body and mind: Supports mental clarity, fitness goals, and overall wellness. "This isn't a fad - it's a global movement," added Grattagliano. "Alcohol consumption may be at a 90-year low, but social connection and celebration are stronger than ever. Zero-proof spirits are the bridge between tradition and tomorrow." As Americans turn away from liquor, brands like Arkay and Beyond Spirits are proving that the future of drinking is not about alcohol - it's about choice, health, and innovation. About Arkay Beverages Founded in 2011, Arkay Beverages pioneered the zero-proof spirits category, offering alcohol-free alternatives to classic liquors. Each product is crafted to deliver the authentic taste of spirits without alcohol, sugar, or calories. About Beyond Spirits Beyond Spirits is the creator of the world's first plant-based, alcohol-free whisky. Combining innovation, sustainability, and craftsmanship, the brand delivers a premium drinking experience for health-conscious consumers worldwide. Press Contact: Person Name:Reynald Vito Grattagliano Media RelationsArkay Beverages & Beyond SpiritsEmail: press@ | To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 minutes ago
- Yahoo
Consumer health is 'relatively sunny,' but some risks persist
Retail sales rose 0.5% in July, slightly below Wall Street's estimates. Meanwhile, preliminary consumer sentiment for August declined to 58.6 from the previous reading of 61.7. Bank of America Institute senior economist David Tinsley and Fitch Ratings senior director David Silverman join Market Catalysts with Julie Hyman to discuss the data and the health of the consumer. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. You mentioned the your bank's credit card data, which is a great source of what people are doing, sort of, in real time. What about its predictive ability, right? Are there any signs telling you whether, to David Silverman's point, you know, kind of whether that it is going to keep up going into the fall? Well, I'd point to two things in our latest report. Uh, and in a sense they're cross-cutting. One is, we see weakness at the lower income consumer end. So in our data there's virtually zero growth year-on-year in consumer spending for the bottom third of households by income. But the good news, I think, is that middle and higher income households are continuing to spend. So, I think, you know, that does bode uh, reasonably well in terms of going forward. And then the other thing I'd just mentioned is that when you look at some of the metrics of financial health for the consumer, like their ability, essentially, to spend on their credit cards, whether they're paying off their full balance every month, these look pretty good, better than they did in 2019. So, I think, you know, there's some, there's some, you know, clouds out there if you like, but by and large, the picture is still relatively sunny. Um, David Silverman, what about though, in particular, that low-income consumer? Um, who are the retailers that are sort of most exposed to that consumer? Can we expect that they are going to see some struggles? Yes, so, those, those retailers would be discounters and dollar stores are some of the primary examples. What's become interesting over the last couple of cycles is a lot of these retailers, uh, will both benefit and be negatively impacted by some of this dislocation in the low-end consumer. Uh, we could see trade down that benefits, uh, companies like Walmart and, and, and Target and Costco and, and Amazon. Uh, that being said, a lot of these companies, uh, over the last number of years have added discretionary products to their mix. Uh, and there's some risk that the low-end consumer pulls back on, uh, purchase of these types of items. Uh, so we could see some, some positives and some negatives, uh, that a bit offset each other, uh, as you know, the, the low-end consumer struggles a bit in the current environment.
