How to Open a High-Yield Savings Account Online
About 10 minutes with the right documents.
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Steps
- Compare. Check APY, fees and limits on the same date. See best high-yield savings accounts.
- Confirm insurance. Look the bank up in FDIC BankFind. See FDIC insurance explained.
- Apply. Expect to give your name, address, date of birth and Social Security number.
- Link and fund. Connect your checking account and transfer money. See best no-fee checking accounts.
- Automate. Set a recurring transfer. See how to build an emergency fund.
Before you apply: confirm the insurance
The FDIC says deposit insurance protects money in deposit accounts at FDIC-insured banks if the bank fails. It also says no depositor has lost a penny of FDIC-insured funds since the FDIC was founded in 1933. Coverage applies only if the bank is FDIC-insured, so search the bank’s legal name in FDIC BankFind before you open anything. Many online brands are divisions of a chartered bank, and BankFind shows which charter holds your deposits.
What FDIC insurance covers
| Covered at an FDIC-insured bank | Not covered, even if sold at a bank |
|---|---|
| Checking and NOW accounts | Stocks and bonds |
| Savings accounts | Mutual funds |
| Money market deposit accounts | Annuities and life insurance |
| CDs and other time deposits | U.S. Treasury bills, notes and bonds |
| Cashier’s checks and money orders the bank issues | Municipal securities and crypto assets |
| Safe deposit box contents |
How much is covered
The standard amount is $250,000 per depositor, per FDIC-insured bank, for each account ownership category. The FDIC adds together all of your deposits in the same category at the same bank. A savings account and a checking account in your name alone at one bank share a single $250,000 limit. Some examples from the FDIC:
- A single account and a joint account at the same bank are insured separately.
- Single accounts at two different banks are each insured up to $250,000.
- An IRA at the same bank is insured separately from your single accounts, because it is a different ownership category.
The FDIC’s Electronic Deposit Insurance Estimator (EDIE) calculates your coverage if your balances are near the limit.
What the application asks for
Ally’s account-opening page says it needs some personal information, such as your address and Social Security number. Most US banks ask for similar details, because they must verify your identity. Have these ready:
- Legal name, date of birth and home address
- Social Security number
- A phone number and email address
- The routing and account number of the checking account you will link
Fees and minimums to check
Read each bank’s fee schedule and account terms before you apply. Ally, for example, says its money market account has no monthly maintenance fees and no minimum balance to earn the APY. Check the same points at any bank you compare. See how APY works for comparing rates.
After it opens
Set up a recurring transfer from checking, which the CFPB calls one of the easiest ways to save consistently. Keep enough in checking so the transfer does not overdraw it.
Frequently asked questions
What do I need?
Typically your address, Social Security number and a way to fund the account, as Ally lists.
How do I know it is insured?
Use FDIC BankFind to confirm the bank is FDIC-insured.
