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A new survey by Empower reveals a sobering truth: The median emergency savings for U.S. adults is just $500. Nearly one in three Americans (32%) have no emergency fund at all, and 29% say they couldn’t cover an unexpected expense over $400.
Although more than 60% consider emergency savings a financial priority, many struggle to save due to inflation, low income or rising monthly costs.
When your safety net is this thin, parking that money in a regular savings account often means losing purchasing power over time. That’s where high-yield savings accounts (HYSAs) come in. They pay significantly higher interest than traditional savings options, usually carry low or no fees and remain liquid enough for real emergencies.
High-Yield Savings Accounts That Can Boost Your Emergency Fund
Most Americans have only a few hundred dollars set aside for emergencies. A HYSA won’t solve everything, but it can stretch your money further by offering interest rates well above the national average.
Western Alliance Bank High Yield Savings Premier Account
This account earns 4.20% APY and doesn’t hit you with monthly fees. You’ll need a minimum deposit of $500 to open it, and while it doesn’t come with a checkbook or debit card, you can move money out through transfers to another account.
Because of its high rate, Western Alliance Bank High Yield Savings Premier Account works well for someone starting with modest emergency savings and looking to grow those funds without locking them into a longer-term option like a certificate of deposit (CD). If you can meet the opening deposit, this account offers a stronger hedge against inflation than many standard savings products.
Capital One 360 Performance Savings Account™
Capital One 360 Performance Savings Account™ also ranks among the stronger high-yield savings accounts, with its 3.50% APY. There’s no minimum deposit or balance requirements to earn interest, and a $0 monthly maintenance fee means every dollar you deposit helps grow your funds rather than being eaten by fees.
The digital banking experience is smooth, with tools for setting up automatic transfers and linking savings goals. These features are especially useful for people who find it challenging to save consistently. While slightly higher yields may be available elsewhere, this remains a reliable, accessible option with solid backing.
Putting It All Together: How To Use a HYSA To Fix the Emergency Savings Gap
Given how low the median emergency savings is, the priority is simply getting something in place. Set a starting goal—say, $500 to $1,000—that can cover basic unexpected costs like car repairs or medical co-pays. Once you’ve built that small buffer, choosing a high-yield savings account can help your money work harder.
Here are a few tips for picking the right account.
- Avoid fees. Even small monthly or minimum balance fees eat into your growth.
- Automate it. Even modest, regular contributions make a difference. Set up automatic transfers of $25 or $50 a month to build your emergency fund steadily over time.
- Check security and FDIC insurance. It’s essential to make sure the account is insured by the Federal Deposit Insurance Corp. (FDIC). That way, your money is protected—typically up to $250,000 per depositor—if the bank ever goes under.
Bottom Line
The Empower survey median of $500 in emergency savings is a warning: Most Americans are just one financial shock away from a crisis. But high-yield savings accounts offer one of the safest and simplest tools for starting to rebuild.
The key is to get started—and let compound interest work in your favor. Even modest deposits can grow meaningfully when you choose the right account.