What's a high-yield savings account and how do I open one with Revolut?

Leaving money in a standard account can result in its value decreasing over time as the cost of living rises. It's often better to look for ways to make it grow instead.

Opening a high-yield savings account (HYSA) with Revolut can be a good option if you want to get more from your money. We'll help your savings go further with competitive rates and a seamless experience.

Read on to learn all about how HYSAs work and how to get started. Once you're ready, open a high-yield savings account with Revolut and effortlessly watch your savings grow.

The information provided is accurate as of January 22, 2026.

The content of this page is for general information purposes only and does not constitute financial advice. If you have any questions about your personal circumstances, please seek professional and independent advice. Revolut is not a financial advisor.

High-yield savings accounts: What you should remember

• A high-yield savings account (HYSA) is a deposit account that pays you a higher interest rate than a standard savings account.
• These accounts are usually insured by the FDIC up to $250,000 per person, per bank, through partner institutions. With us, savings account services are provided by Cross River Bank, Member FDIC, and insured up to $250,000.
• HYSAs are helpful if you're saving for an emergency fund or short-term goal.
• While interest rates are variable and can fluctuate based on Federal Reserve decisions, these accounts are generally an effective way to help you build wealth.
• You can only hold one high-yield account with us at a time, and it's limited to $10,000 in deposits. The maximum combined balance of all your savings accounts with us is $250,000.

What's a high-yield savings account?

A high-yield savings account is a type of deposit account that pays you a higher Annual Percentage Yield (APY) than the national average for regular savings accounts.

While a traditional savings account might offer a relatively low APY, a high-yield account can offer you rates that are higher. We've designed these accounts to help you save for specific goals while keeping your money accessible.

What's considered “high-yield”?

There isn't an official threshold that makes an account high-yield. However, any account offering you an APY significantly above the national average generally falls into this category. According to the FDIC, the national average for savings accounts often hovers around 0.45%. In the current market, many top-tier HYSAs offer rates between 4.00–5.00% APY. For example, on January 22, 2026, our Revolut High-Yield Savings Account had an APY of up to 5.50% (variable).

Who uses a high-yield savings account?

HYSAs are versatile tools that anyone from students to retirees can use. Your primary goal is to protect the buying power of your money.

• The emergency fund saver: Most experts recommend you have 3–6 months of expenses in a liquid account. An HYSA is a suitable home for these savings, as they stay accessible while growing.
• The short-term planner: If you’re saving for a wedding, a down payment on a house, or a vacation in the next 1–2 years, an HYSA keeps your money accessible without the volatility of the stock market.
• The conscious spender: Even if you just have a few thousand dollars sitting in your account for "just in case" moments, moving it to an HYSA could help you get more from it.

High-yield savings: Definitions and terms to keep in mind

Before you dive in, it’s helpful to know the vocabulary of the savings world:

• APY (Annual Percentage Yield): This is the rate of return on your account, taking into account the effect of compounding interest over a year.
• Compound interest: This is the interest you earn on your initial deposit combined with the interest that's already been added to your balance. For example, if you earn $5 in interest this month, next month you'll earn interest on that $5 on top of your original deposit.
• FDIC Insurance: The Federal Deposit Insurance Corporation protects your deposits up to $250,000 per person, per bank, in the event of a bank failure.
• Liquidity: This is how quickly and easily you can access your money. HYSAs are very liquid, meaning that your money is very accessible.
• Variable rate: This means your interest rate can change at any time based on market conditions or central bank policy.

How high-yield savings accounts work

An HYSA works similarly to other savings accounts you've used before. You deposit the money, and the financial institution pays you interest on your balance. We calculate your interest daily and credit it to your account monthly.

Understanding APY vs interest rate

While you might hear these terms used interchangeably, there's a subtle difference. The interest rate is the annual percentage we use to calculate how much we'll pay you for keeping money in your account. The APY is the total amount of interest you'll earn in a year, including compounding.

You should always look at the APY when you're comparing accounts, as it gives you the most accurate picture of your potential earnings.

The power of compound interest on HYSA

The real advantage of an HYSA is compound interest. This is when you earn interest not only on your original deposit but also on the interest that's already been added to your account.

For example, if you deposit $1,000 into an account with a 4.50% APY, here's how that hypothetical growth might look:

• Year 1: You'll earn $45 in interest, bringing your total to $1,045
• Year 3: Your balance grows to approximately $1,141
• Year 5: Your balance reaches approximately $1,246

Over time, this "interest on interest" can lead to significant growth, especially if you continue to add money to your account regularly.

Pros and cons of high-yield savings accounts

Like any financial tool, an HYSA has its trade-offs. It’s important you understand both sides so you can decide if it fits your strategy.

The pros of a high-yield savings account

• Higher earnings: You'll earn much more interest than you would with traditional savings account
• Security: We protect your money through FDIC insurance via our partner banks
• Liquidity (accessibility): You can withdraw your money whenever you need to
• Clear fees: Clear pricing with detailed fees in-app

The risks of an HYSA

• Variable rates: The APY on your HYSA isn't fixed. If the Federal Reserve lowers interest rates, the rate on your savings account will likely follow.
• Inflation risk: If inflation is higher than your APY, you're still technically losing a small amount of "real" value, though you're losing less than you would in a 0.01% account as the APY is usually higher on an HYSA.
• Withdrawal limitations: While liquid, some providers might have limits on how many times you can move money out each month without incurring a fee. With us, you can access your money whenever you need it without any fees.

Is a high-yield savings account right for you?

If you've got money that you don't need for your immediate daily expenses and you want to keep it secure and accessible, an HYSA may be a suitable fit.

An HYSA might not be suitable if:

• you're looking for long-term (10+ year) growth to fund your retirement. In that case, other investments such as stocks could suit you more. Capital at risk, other fees may apply.¹
• you need to write checks directly from your account daily.
• you want to "lock in" a specific interest rate for a year or more.

Revolut is not a financial advisor. If you have any questions about your personal circumstances, please seek professional and independent advice.

Finding the best high-yield savings account

When you're comparing different providers, consider these factors:

• The APY: A higher rate is better, but you should check if it's an "introductory" rate that'll expire after a few months. The rate we offer isn’t an introductory one, though it may vary with time based on market conditions.
• Minimum balance requirements: Some banks require you to keep at least $5,000 or $10,000 in the account to get the top rate. We believe in making growth accessible to you, so we don’t have minimum requirements for the Revolut HYSA.
• Fees: Watch out for monthly maintenance fees or transfer fees that can eat into your interest.
• Your experience: We recommend checking if the app is easy to use and if you can move your money quickly and easily when you need it. Our app is simple and intuitive.
• Insurance: Make sure you go with an institution that's FDIC-insured. Our savings accounts are provided by Cross River Bank, Member FDIC, and insured for up to $250,000.

How to open a high-yield savings account

Opening an account is a straightforward process. You don't need to visit a branch. With our app, you can get started in just a few minutes. Here's how:

1. Download the app, create your account, and verify your identity in a few minutes
2. Go to the Savings tab
3. Follow the prompts to open your high-yield savings account
4. Add money from your main Revolut balance or an external account and start earning interest

Common questions about high-yield savings accounts

How often does the APY change?

Savings rates are variable, meaning they can change at any time. APY may change for various reasons after the opening of the account.

Is my money safe in an HYSA?

Yes, as long as the account is FDIC-insured. This is a federal guarantee that you'll get your money back (up to $250,000) even if the bank goes out of business.

Our savings account services are provided by Cross River Bank, Member FDIC, and insured up to $250,000.

Do I have to pay tax on my interest earnings?

In the US, the interest you earn in a savings account is considered taxable income.

Remember: we don’t offer tax advice, so you should always seek independent professional advice regarding your specific tax situation.

The Annual Percentage Yield (APY) is a variable rate and may change at any time. APYs vary by plan and account type.

Revolut is not a bank. Plan fees and cancellation fees apply for Premium and Metal plans. This is a variable-rate account and the APY may change without notice. Terms and Conditions apply. No minimum balance to open. $0.01 minimum balance to earn APY. Only one High Yield Account is permitted and is limited to $10,000 USD in customer-initiated deposits. The maximum combined balance of all Savings accounts is $250,000 per customer. Savings account services provided by Cross River Bank, Member FDIC, insured up to $250,000.

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