A high yield savings account pays significantly more interest than traditional savings accounts—often 10-20 times more. While regular savings accounts might pay 0.01% annually, high yield accounts can offer 4-5% or more, helping your money grow faster while remaining completely safe.

These accounts are typically offered by online banks that have lower overhead costs than traditional brick-and-mortar institutions. The trade-off is that you may have limited number of monthly transactions, and have access to limited physical locations, but you gain FDIC insurance protection up to $250,000 and much better returns. High yield savings accounts are perfect for emergency funds, short-term goals, or any money you want to keep safe while earning meaningful interest.