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High-Yield Savings Accounts

A higher interest rate means more money for college

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High-yield savings accounts are deposit accounts available through online or brick-and-mortar banks that earn a higher interest rate than a traditional savings account, letting you save more over time.

Why Choose a High-Yield Savings Account


If you want to start saving for college, opening a high-yield savings account dedicated to your child’s education is a good start. A high-yield savings account with a competitive Annual Percentage Yield (APY) can be a low-risk and flexible way to save for college. You can contribute as much as you like, as often as you like. While the end goal might be college savings, you also have the option to use the money for anything, anytime.


How High-Yield Savings Accounts Work


When you deposit your money in a high-yield savings account, your bank will pay you a certain amount of interest, based on the account’s interest rate and how much money you’ve deposited.

The interest rate offered on a high-yield savings account is generally higher than the interest rate offered on a traditional savings account, meaning you can earn more interest over time and your savings grow more quickly. Traditional savings accounts offer about a .01% interest rate. If you have a $10,000 balance and maintain that over the course of a year, you'd earn $1 in interest. In a High-Yield Savings Account, like Upromise GoalSaver, which is paying 0.85% APY, you'd earn $85 in interest.1

What to Look for in a High-Yield Savings Account


When it comes time to choose your high-yield savings account, there are some things you should consider.

  • Make sure you check for any fees or restrictions associated with the account.
  • Be sure to compare interest rates being offered.
  • Find out what, if any, restrictions there are around withdrawals.
  • See if there is a tiered interest rate which typically offers more earnings for maintaining a higher balance.
  • Compare online banks and retail banks because online banks typically have fewer expenses and can pass those savings onto you through higher rates of interest. Make sure it is FDIC insured.

Upromise GoalSaver is a High-Yield Savings Account


Upromise GoalSaver is a free, no-fee online savings account that helps you visualize and track progress towards your savings goals. You can also earn milestone rewards and loyalty bonuses.2 Plus, if you’re a Upromise member, you can boost your savings with a 10% match on transferred Upromise earnings.3


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*A high-yield savings account is an account with a variable rate typically higher than the national average passbook and statement savings rates as listed on Bankrate.com as of 10/12/2016. The Upromise GoalSaver Account product is separate and distinct from the Sallie Mae High-Yield Savings Account product. Please refer to the terms and conditions for the Sallie Mae High-Yield Savings Account for further details. The terms and conditions of the Sallie Mae products may differ from the products compared by Bankrate.com.

1 Advertised Annual Percentage Yield (APY) for the Upromise GoalSaver Account is variable and may change after account opening, applies to personal accounts only, and is accurate as of 12/15/2016. Fees could reduce earnings. Please refer to the Account Terms and Conditions Agreement for details.

2 Cash rewards will post to Upromise GoalSaver Account(s) in the form of interest payments and is subject to taxable income rules. Each cash reward program is subject to individual eligibility requirements:

  • 10% Match on Upromise Rewards: To be eligible for the 10% annual match on your Upromise earnings from Upromise, you must link your Upromise GoalSaver Account to your Upromise Rewards Account and either: 1. Within 90 days of opening your Upromise GoalSaver Account, make your first of at least 10 externally funded credit/deposit transactions into the Upromise GoalSaver Account and complete at least 10 externally funded credit/deposit transactions within the anniversary year or 2. Within 90 days of opening your Upromise GoalSaver Account, fund your Upromise GoalSaver Account with $5,000 or more and maintain an average daily balance of $5,000 or more during the 12 months from account opening. Should you fail to meet the requirements during the anniversary year, you will have the opportunity to become eligible for the 10% match in additional years if, by your anniversary date, you (a) link your Upromise GoalSaver Account to your Upromise Rewards Account, and (b), you either meet the $5,000 average daily balance minimum funding requirement, or you meet the 10 externally funded credit/deposit requirement in the anniversary year. If you qualify for the 10% match based on having the average daily balance of $5,000 in your Upromise GoalSaver Account, you must maintain that average balance in your Upromise GoalSaver Account for the duration of the anniversary year for which your transferred earnings will be matched. Once you complete the steps above, Upromise will match 10% of your Upromise earnings that you transfer from your Upromise Rewards Account into your Upromise GoalSaver Account during each anniversary year. Your match will be deposited into your Upromise GoalSaver Account within 60 days after your anniversary date, provided that both accounts remain active at time of transfer. Please refer to GoalSaver FAQs for additional information.
  • Annual Bonus: $10 Annual Bonus will post to your Upromise GoalSaver Account within 60 days of the completion of each anniversary from the date your account was opened. To be eligible for the bonus each year, you must have a recurring deposit post at least 10 out of the 12 months in an amount not less than $10 each deposit and your account must be in an open status at the time of bonus posting.
  • Loyalty Bonus: $100 will post to your Upromise GoalSaver Account within 60 days of the completion of the 3rd year anniversary of when your Upromise GoalSaver Account was opened. To be eligible the Upromise GoalSaver Account must maintain at least $0.01 up until the day before the 3rd anniversary date, a $5,000 balance must be reached by and remain in the account on the 3rd anniversary date and the Upromise GoalSaver Account must be in an open status at the time of bonus posting.

We reserve the right to modify or discontinue features, benefits and services including cash rewards and bonuses at any time without notice. Other terms and conditions may apply. Upromise Rewards Accounts are not FDIC insured, carry no bank guarantee and may lose value. Please visit Upromise.com for most up-to-date product features.

3 Subject to $10 minimum transfer amount.

Deposit products, including Upromise GoalSaver Accounts, are offered through Sallie Mae Bank, Member FDIC.

Please note: cash back savings held in your Upromise Rewards Account are not FDIC insured, carry no bank guarantee and may lose value. Once rewards are swept into your Upromise GoalSaver Account, FDIC insurance is covered through Sallie Mae Bank up to the applicable limits. See FDIC website for insurance limits.