High-yield savings account

A savings account that pays a much higher interest rate than a typical bank savings account.

High-yield savings accounts, often from online banks, pay a higher APY than standard savings accounts. They're a common home for an emergency fund or money saved for a goal.

Look for FDIC insurance (or NCUA at a credit union), which protects deposits up to $250,000 per depositor, per bank, for each ownership category. Rates can change at any time.