A high-yield savings account is an account you can open online without visiting a branch. Many banks let you apply through a website or mobile app, verify your identity electronically and fund the account by electronic transfer. If the bank cannot verify your identity online, it may ask for more information or require a phone call or branch visit.
Eligible deposits at an FDIC-insured bank are generally covered up to $250,000 per depositor, per FDIC-insured bank, per ownership category.
Online High-Yield Savings Accounts at a Glance
| Question | Answer |
|---|---|
| Can you apply online? | Yes, at many banks and financial institutions |
| What do you usually need? | A Social Security number or ITIN, government-issued ID and personal information |
| Do you need an opening deposit? | It depends on the account |
| Is the interest rate guaranteed? | Usually not. Savings accounts commonly have variable rates |
| Is the money insured? | Yes, if the bank is FDIC-insured and your balance stays within coverage limits |
| How do you add money? | Usually through ACH transfer, direct deposit, debit card or check |
What You Need to Open the Account
Most online applications ask for:
- Your legal name, address and date of birth
- Social Security number or Individual Taxpayer Identification Number
- A driver's license, state ID, passport or other accepted identification
- An email address and mobile phone number
- A bank account or debit card for the first deposit, if the account requires one
Requirements vary by institution. The Federal Deposit Insurance Corporation lists a Social Security number or ITIN and government-issued identification as common requirements for opening a bank account online.
How to Open a High-Yield Savings Account Online
1. Compare the Account Terms
Look beyond the advertised APY. Check the:
- Annual percentage yield
- Monthly maintenance fee
- Minimum opening deposit
- Minimum balance requirement
- Minimum balance needed to earn the advertised APY
- ACH transfer limits and processing times
- ATM or branch access
- Customer support options
- Promotional APY terms
Federal disclosure rules require deposit institutions to provide information about APY, interest rates, minimum-balance requirements and fees so consumers can compare accounts.
2. Confirm That the Institution Is Insured
Before depositing money, verify FDIC insurance if you are opening an account with a bank. The FDIC's BankFind tool can show whether a bank is FDIC-insured. FDIC insurance generally covers savings accounts up to $250,000 per depositor, per FDIC-insured bank, per ownership category.
For a credit union, look for federal NCUA insurance. Federally insured credit unions generally provide up to $250,000 of coverage for an individual account.
3. Apply Through the Official Website or App
Use the financial institution's official website or verified mobile app. Be careful with unfamiliar advertisements and websites that use a company name resembling a legitimate bank.
Complete the application, read the account agreement and authorize the institution to verify your identity.
4. Make the Initial Deposit
Depending on the account, you may be able to add money through:
- An electronic transfer from another bank
- Direct deposit
- A debit card
- A mailed or mobile-deposited check
The minimum opening deposit varies. Some accounts have no initial deposit requirement, while others require a specific amount.
5. Confirm That the Account Is Active
After approval, check the:
- Account number and routing number
- Current APY
- Pending verification deposits
- Transfer limits and settlement times
- Interest-crediting schedule
- Available account alerts
Does the High-Yield Savings Rate Stay the Same?
Usually, no. High-yield savings accounts commonly have variable interest rates, so the bank can change the rate after you open the account. Banks must disclose that a variable rate may change and provide information about how and when the change can occur.
A promotional APY may apply for only a limited period or to a specific portion of your balance. Read the account disclosures before using the advertised rate in your savings plan.
Is an Online High-Yield Savings Account Safe?
An online high-yield savings account is generally a safe place for cash when it is held at an FDIC-insured bank or federally insured credit union. FDIC insurance covers eligible deposit products such as savings accounts. It does not cover investments such as stocks, bonds, mutual funds or crypto assets.
The $250,000 FDIC limit applies to the combined balance of your accounts in the same ownership category at the same bank. Opening several savings accounts at one bank does not automatically give you a separate $250,000 limit for each account.
Can You Open One If You Do Not Already Bank With That Institution?
Usually, yes. You generally do not need an existing checking account at the same bank. Many institutions let you link an account at another bank and transfer money into the new high-yield savings account.
Eligibility rules may differ if you are:
- Under 18
- Applying for a joint account
- A non-U.S. resident
- Applying without a Social Security number or ITIN
- Unable to complete online identity verification
The institution's rules determine whether you qualify, so check them before starting the application.
Bottom Line
You can open a high-yield savings account online without visiting a branch. Compare the APY, fees, minimum balance rules, transfer options and promotional conditions. Then apply through the official website of an FDIC-insured bank or NCUA-insured credit union. Have your government ID, Social Security number or ITIN and funding account ready.