Definition
High-Yield Savings Account (HYSA)
A savings account that pays much more interest than a standard bank account.
A high-yield savings account works like a normal savings account but pays a far higher APY, often many times what a big traditional bank offers. It is FDIC-insured and you can withdraw freely.
It is the ideal home for an emergency fund and short-term savings goals: the money stays safe and liquid while earning meaningful interest, unlike cash sitting in checking.