How to Choose a High-Yield Bank Account

A rising interest rate penalized savers, especially retirees who rely on safe, reliable incomes. As they rise, savers will see modest gains on their cash deposited in money market accounts and certificates of deposit.

A Federal Reserve rate increase will not immediately affect your bank interest rate, as deposits in banks are already high. Banks don’t need to increase rates to attract more cash.

However, a rising benchmark rate can lead to an increase inĀ  some accounts.

When interest rates go up, some banks may raise savings rates to attract new customers. This puts additional pressure on other financial institutions to raise their interest rates as well.

If one bank starts, others are likely to follow. In 2021, this already occurred with online financial institutions when local banks saw an outflow due to the higher interest rates and incentive-based reward accounts.

If you choose a high-yield savings account, keep these factors in mind:


In a high-yield savings account, monthly maintenance fees can eat away at your annual percentage yield (APY), what you earn on your money. Other accounts, especially at online banks, have few or no fees.

You should read the fine print before making a deposit to find out how much an account might cost.


To earn higher interest rates, some banks require customers to meet the monthly requirements such as balance amounts or automated deposits.

Look for a bank that will not penalize you if you aren’t saving enough. Some banks and credit unions, even offer higher APYs for lower balances.

Customer service

In the event that you decide to open an account with an online bank, make sure that you have multiple options for contacting customer support to compensate for the lack of physical branches.

Among these options are secure messages, chat, and phone.

Digital access

As more people conduct most of their regular banking online, the quality of your bank’s website and mobile app becomes increasingly important.