Why Choose a High-Yield Savings Account?
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- Earn More, Save Faster
With high-yield savings accounts, your money grows significantly faster than with traditional banks. For example:
- A $10,000 deposit in a 4.00% APY HYSA earns $400 per year vs. just $40 in a traditional savings account.
- Over 5 years, that’s a difference of $2,000 vs. $200.
- Safety & FDIC Insurance
All recommended high-yield savings accounts are FDIC-insured up to $250,000 per depositor. This means your money is protected, even in times of economic uncertainty.
- Flexibility & Liquidity
High-yield savings accounts allow easy access to your money whenever needed (unlike CDs). Withdraw or transfer funds at your convenience!
High-Yield Savings Accounts vs. CDs: Which One is Right for You?
| Feature | High-Yield Savings Account | Certificate of Deposit (CD) |
| APY (Interest Rate) | 3.50% – 4.00% | 3.25% – 4.10% |
| Liquidity | High (Withdraw anytime) | Low (Funds locked until maturity) |
| Risk Level | Low | Low |
| Best For | Emergency funds, flexible savings | Fixed-term savings with guaranteed rates |
How do your savings compare?
Experts recommend having at least 3-6 months’ worth of living expenses in savings.
How to Open a High-Yield Savings Account Today
- Compare Rates – Choose an account with the best APY and no hidden fees.
- Provide Information – Fill out a quick online application.
- Fund Your Account – Transfer funds easily from another bank.
- Watch Your Money Grow – Start earning daily compounded interest.
The Time to Act is Now!
With high-yield savings account rates expected to drop, this is the best time to lock in a top-tier APY. Don’t leave money on the table—open a high-yield savings account from CIT Bank, or Valley Bank today and start growing your savings faster than ever.
Click here to read our Guide on how High-Yield Savings accounts are outpacing Rate of Inflation and can help grow your Savings and meet your Financial Goals
When choosing the best FDIC insured CD for your money, keep in mind the following 4 factors:
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CD Term Length – how long can you comfortably commit to locking up your money
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Interest Rate (APY) – use our comparison table to help you find the highest interest rates offered by the online banks
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Minimum Deposit Requirement – Most CDs require a minimum deposit to open an account. Deposit amounts vary by bank.
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Early Withdrawal Penalty Fee – if you withdraw your funds before the term ends you will get hit with an early withdrawal penalty, usually several months of interest (not applicable for no-penalty CDs).
Open a market leading 6 month CD from CIT Bank
Exploring No-Penalty CDs
For those desiring added flexibility, no-penalty CDs are an attractive option. You can withdraw funds penalty-free after just one week, unlike standard CDs that impose penalties for early withdrawals. These CDs often have slightly lower rates compared to standard CDs, but their flexibility makes them ideal for uncertain financial situations.
For a 12 month CD, Banks usually charge anywhere between 60 days and up to 180 days worth of interest as penalty for early withdrawal.
Most CDs charge you a fee if you need to withdraw money from your account before it matures. But if you get a no-penalty CD, you won’t have to pay an early withdrawal penalty.* Lock in the high rate today and if rates go up in the future, withdraw your funds and just move to the higher rate account without any penalties or hassle. No-penalty CDs are specially ideal for those who aren’t sure when they’ll need access to their money, but still desire to earn a possible higher APY. Be a savvy saver. Start earning today.
*With a No-Penalty CD, you may withdraw the total balance and interest earned, without penalty, beginning 7 days after funds have been received for your CD. No withdrawals are permitted during the first 6 days following the receipt of funds.
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Frequently asked questions
What does annual percentage yield (APY) mean?
Deposit accounts (Savings, Checking, Money Market, CD) rates are quoted in terms of APY, which is the effective annual interest return after taking into account the effect of compounding interest (assuming that the deposit balance does not change).
Is my money safe in an online savings account?
Yes, online accounts are safe. Most online financial institutions are federally insured by the Federal Deposit Insurance Corporation up to $250,000 per depositor.
What is the difference between a savings account and a money market account?
Although savings and money market accounts offer similar APYs, money market accounts usually require higher balances to avoid monthly fees, if any. Due to these deposit requirements, the money market accounts tend to offer a higher APY than savings accounts.
How often do high savings rates change?
Since the rates (APYs) are variable, the rates can change at any time. Typically, financial institutions adjust their APYs based on their competitors’ actions or when the Federal Reserve hikes or cuts the interest rates. However, in times of low inflation, saving accounts’ APYs usually remain unchanged. Your online bank will usually notify you whenever the high yield savings rate (APY) changes.
How often can I take money out of a high-yield savings account?
Typically, financial institutions limit the number of certain kinds of withdrawals from any type of savings account to a maximum of six per month. Exceeding the six transactions per statement cycle can result in being charged an excess withdrawal fee each time the limit is exceeded. However, on April 24, 2020, the Federal Reserve allowed providers to eliminate this cap. Contact your financial institution’s customer service line to find out if it has eased restrictions.
What are the differences between Brokered CDs and Bank CDs?
Bank CDs are usually purchased directly from a bank, while brokered CDs are typically purchased through a brokerage firm (such as Morgan Stanley, Merrill Lynch, Schwab, Edward Jones etc.). Brokered CDs and traditional CDs are both issued by a bank (i.e. they’re both protected by FDIC insurance), earn fixed interest and come with specific maturity dates.
With a brokered CD, you can take advantage of longer terms:
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A typical bank CD’s term length is between three months to five years. A brokered CD can offer much more flexibility with terms ranging between one month and 20 years.
A bank CD’s interest is usually compounded and paid at the maturity date. Brokered CDs, don’t compound interest and interest can be paid in regular periods, such as monthly or twice a year, or at maturity.
If you withdraw money early from a bank CD, you’ll usually incur a penalty worth months of interest (unless you opened a no-penalty CD*). With a brokered CD, you sell the CD instead and your brokerage firm may charge you a fee to process the transaction.
If you have a brokerage account and access to a Financial Advisor, a brokered CD may be worth exploring if you want to take advantage of longer term lengths, and the greater liquidity compared to traditional CDs.
However, for most consumers a traditional CD would be simpler to open and manage. For those looking for the most liquidity (i.e., easiest access to cash) — such as if you’re saving for a particular goal or to build an emergency fund — a high-yield savings account would be the way to go.
*With a No-Penalty CD, you may withdraw the total balance and interest earned, without penalty, beginning 7 days after funds have been received for your CD. No withdrawals are permitted during the first 6 days following the receipt of funds.
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Why trust Credit and Cents?
Credit and Cents provides market research and market-leading products to empower our readers to make informed decisions about their money. Experts with extensive industry knowledge of credit and deposit products compile our comparison charts and product reviews. Although Credit and Cents earns a commission from affiliate partners, our product reviews are based on our research without influence from outside third parties.
Credit and Cents is an affiliate partner for CIT Bank (a division of First Citizens Bank), and Valley Direct Bank (a digital only subsidiary of Valley Bank).
We provide competitive research and product information so that you can apply for the high-yield account that makes the best sense for you. All accounts are opened directly on the Bank sites only (no customer information is collected on the Credit and Cents site).
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