A savings account paying substantially more interest than a traditional bank, typically online-only.
The gap between a big-bank savings rate (often near 0.01%) and a high-yield account (often 4%+) is one of the easiest wins in personal finance — same FDIC insurance, dramatically more interest.
Example: $20,000 at 0.01% earns $2/year; at 4.2% it earns $840/year.
FAQ
What is High-Yield Savings in simple terms?
The gap between a big-bank savings rate (often near 0.01%) and a high-yield account (often 4%+) is one of the easiest wins in personal finance — same FDIC insurance, dramatically more interest.