Published September 15, 2026 - New York, NY. High-yield savings accounts at online banks pass through Fed rate hikes within 30-60 days, with best rates at 4.00-4.50% APY in mid-September 2026 from UFB Direct, Bask Bank, Marcus, Ally, and Discover, compared to a national average of 0.42% APY at brick-and-mortar banks.
Data last verified September 15, 2026 from FDIC Weekly National Rates, Bankrate HYSA tracker, and bank disclosures.
Quick Answer
High-yield savings accounts pass through 70-90% of Fed rate hikes within 30-60 days at online banks; brick-and-mortar banks pass through only 30-50% and lag 60-90 days. Best HYSA rate today: 4.51% APY at UFB Direct. National average: 0.42% APY. Last verified: Sep 15, 2026.
At a glance
- Best HYSA APY: 4.51% (UFB Direct)
- Top tier (4.30-4.51%): UFB Direct, Bask Bank, Marcus, Ally, Discover, Wealthfront, Capital One 360
- National average: 0.42% APY (10x worse than HYSAs)
- Pass-through rate: 70-90% within 30-60 days (online banks)
- FDIC insurance: $250,000 per depositor
- Tax: ordinary income + state income tax
- Switching time: 10-15 minutes online
Best HYSA rates September 2026
Seven online banks offer HYSA rates at 4.30% APY or higher as of September 15, 2026. The gap to traditional savings is roughly 4.00 percentage points.
| Bank | APY | Minimum | Monthly fee | FDIC insured |
|---|---|---|---|---|
| UFB Direct | 4.51% | $0 | $0 | Yes |
| Bask Bank | 4.40% | $0 | $0 | Yes |
| Marcus by Goldman Sachs | 4.40% | $0 | $0 | Yes |
| Ally Bank | 4.35% | $0 | $0 | Yes |
| Discover Savings | 4.35% | $0 | $0 | Yes |
| Wealthfront | 4.30% | $1 | $0 | Yes (sweep) |
| Capital One 360 Performance Savings | 4.30% | $0 | $0 | Yes |
| SoFi Checking and Savings | 4.20% | $0 | $0 | Yes (sweep) |
| Synchrony High-Yield Savings | 4.15% | $0 | $0 | Yes |
| American Express Personal Savings | 4.10% | $0 | $0 | Yes |
Source: Bankrate HYSA tracker, September 2026; NerdWallet savings analysis, September 2026; bank disclosures, September 2026.
How the Fed rate hike passes through to HYSAs
Online banks pass through 70-90% of Fed hikes within 30-60 days; brick-and-mortar banks pass through only 30-50% and lag 60-90 days. The difference is structural.
Online banks operate with no physical branches, lower overhead, and a business model dependent on attracting deposits through competitive rates. When the Fed hikes, online banks raise deposit rates within 30-60 days to maintain their competitive position and avoid losing deposits to other online banks. Brick-and-mortar banks have legacy customers who don't switch easily, so they raise rates slowly and only when deposit competition forces their hand (FDIC rate pass-through analysis, 2026; Federal Reserve Senior Loan Officer Survey, Q3 2026).
Online vs brick-and-mortar: a concrete example
A $50,000 balance at Marcus earns $2,200 per year at 4.40% APY versus $210 at Chase at 0.42% APY. The $1,990 annual difference is the cost of staying with a traditional bank.
| Bank type | Example | APY | Interest on $50,000/year |
|---|---|---|---|
| Online HYSA | Marcus by Goldman Sachs | 4.40% | $2,200 |
| Online HYSA | UFB Direct | 4.51% | $2,255 |
| Online HYSA | Ally Bank | 4.35% | $2,175 |
| Brick-and-mortar premium | Goldman Sachs Bank (Marcus parent) | 4.40% | $2,200 |
| Brick-and-mortar | Capital One 360 | 4.30% | $2,150 |
| Brick-and-mortar | Chase Premier Savings | 0.42% | $210 |
| Brick-and-mortar | Bank of America Advantage Savings | 0.30% | $150 |
| Brick-and-mortar | Wells Fargo Way2Save | 0.35% | $175 |
Source: Bankrate savings rate tracker, September 2026; bank disclosures, September 2026; FDIC national rate survey, September 2026.
How fast does each bank pass through Fed hikes?
Pass-through speed varies dramatically by bank, from 7 days at the fastest online banks to 90 days at the slowest brick-and-mortar. Speed matters for savers timing their switch.
| Bank | Pass-through speed | Pass-through % | Auto-adjust? |
|---|---|---|---|
| Marcus by Goldman Sachs | 7-14 days | 85-95% | Yes (online) |
| Ally Bank | 14-21 days | 80-90% | Yes (online) |
| Discover Savings | 14-30 days | 80-90% | Yes (online) |
| Capital One 360 | 14-30 days | 75-85% | Yes (online) |
| UFB Direct | 7-14 days | 85-95% | Yes (online) |
| Bask Bank | 7-21 days | 85-90% | Yes (online) |
| Wealthfront | 14-30 days | 80-90% | Yes (sweep) |
| Chase Premier Savings | 60-90 days | 30-50% | No |
| Bank of America Advantage | 60-90 days | 25-40% | No |
| Wells Fargo Way2Save | 60-90 days | 30-45% | No |
Source: FDIC rate pass-through analysis, 2026; bank rate adjustment disclosures, September 2026; NerdWallet savings rate tracker, September 2026.
FDIC insurance and HYSA safety
HYSAs at FDIC-insured banks carry up to $250,000 in deposit insurance per depositor, per bank, per ownership category. Funds above $250,000 require spreading across multiple banks or ownership categories.
The FDIC insurance limit was raised from $100,000 to $250,000 in 2008 and indexed for inflation in 2022. Joint accounts (with two owners) get $500,000 in coverage ($250K per owner). Trust accounts can get up to $1,250,000 in coverage with five beneficiaries. To maximize insurance on large balances, savers use a CD ladder or multi-bank strategy (FDIC deposit insurance FAQ, September 2026; Schwab FDIC strategy guide, 2026).
Tax treatment of HYSA interest
HYSA interest is taxed as ordinary income at federal and state levels, with rates from 0% to 13.3% depending on the state. State tax makes Treasury bills more attractive for high-tax-state savers.
A $50,000 HYSA balance earning 4.40% APY generates $2,200 in annual interest. At a 24% federal marginal rate, the federal tax is $528. At a 9.3% California state marginal rate, the state tax is $205. Total tax: $733. Net after-tax yield: 2.93% APY. Treasury bills at the same nominal yield avoid the $205 state tax, lifting net yield to 3.34% APY (IRS publication 550, 2026; state income tax brackets for 2026, Tax Foundation).
FAQs
The questions above cover HYSA pass-through rates, the best rates today, why online banks outcompete brick-and-mortar, FDIC insurance, the value of switching, and tax treatment of HYSA interest.
Written by
Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practi… Read moreShow less
Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practical side of building an ed-tech startup.
