High-yield savings account

A high-yield savings account is an insured savings account that pays well above the national average APY, usually at online banks, while keeping your money available to withdraw.

Rates are variable and can change at any time. Deposits at FDIC-insured banks are insured up to $250,000 per depositor, per bank, per ownership category. Interest is taxed as ordinary income each year.

Sources: FDIC: Deposit insurance · IRS: Topic 403, Interest received