Looking to earn more on your idle cash? A high-yield savings account (HYSA) is an easy way to generate returns on security deposits and reserves for emergencies or upgrades. In this guide, we’ll walk you through how to get a high-yield savings account, what to look for, and the best ways to leverage HYSAs for passive income.
Key takeaways
- High-yield savings accounts offer significantly higher interest rates than traditional savings accounts.
- Online banking platforms generally offer the best high-yield savings accounts with no to low fees and higher APYs.
- You can use HYSAs to hold reserves, emergency funds, and landlord security deposits in some states.
You can earn up to 3.35% APY² with Baselane’s HYSA.
How to get a high-yield savings account: Step-by-step guide
If you’re wondering how to start a high-yield savings account, you’re not alone. Despite inflation easing from previous peaks, consumer prices in 2025 are 23% higher than pre-pandemic levels—meaning your money doesn’t go as far as it used to, and keeping rental funds in a low-interest account no longer makes sense.
High-yield savings account rates often outpace inflation, helping preserve the purchasing power of your passive income. In this step-by-step guide, we’ll walk through exactly how to open one and what high-yield savings account rules to watch for.
Step 1: Compare the best high-yield savings accounts
Not all high-yield savings accounts are the same, so it pays to shop around. Here’s what to look for:
- High APY: Aim for at least 3% or higher to maximize your returns.
- No monthly fees: Avoid accounts that charge monthly maintenance fees (typically $5 to $15 per month).
- No or low minimum balance: Choose an account that doesn’t penalize you for dipping below a threshold.
- Fast, easy online access: Look for digital tools that make deposits and withdrawals quick and seamless.
- FDIC or NCUA insurance: Ensure your funds are protected up to $250,000.
Where to find the best HYSAs?
You’ll find HYSAs at both online and traditional banks, but online banking platforms typically offer higher APYs. With fewer overhead costs, they pass the savings on through better rates.
| Online Banks: High-Yield Savings Accounts | Traditional Banks: High-Yield Savings Accounts |
|---|---|
| 3% APY or higher | 1% APY or lower |
| Low or no monthly fees | $5-$15/month |
| $0 minimum balance requirement | $500-$10,000+/month |
| 5-10 minute setup online | 1-2 days, branch visits may be required |
When choosing a HYSA, the best bank account for rental property owners will have a high APY, low or no monthly fees, and no minimum balance requirements.
Step 2: Check the bank’s terms and conditions
Before opening an account, take a few minutes to read the fine print. Here’s what to look for:
- Withdrawal limits: Some banks still limit savings account transfers to six per month, though this is no longer a federal requirement.
- APY requirements: To earn the advertised rate, you may need to meet certain conditions, like maintaining a minimum balance or setting up direct deposit.
- Deposit methods: Make sure the bank supports ACH transfers, mobile check deposits, or wire transfers for easy funding.
- Bonus offers: Some banks offer sign-up bonuses when you deposit a specific amount.
Understanding these details upfront helps you avoid surprises and ensures you’re getting the most out of your HYSA, especially when comparing digital banking benefits.
Check out our lists of the best banks for real estate investors and the best banks for Airbnb business owners.
Step 3: Gather required information
Applying is quick, but you’ll need to have the right documents ready. Most banks will ask for:
- Personal details: Name, address, date of birth, and Social Security number
- Valid ID: Such as a driver’s license or passport
- Banking info: To link an external account for funding
If you’re applying under an LLC or business entity, be prepared to provide:
- EIN (Employer Identification Number)
- Business formation documents (e.g., certificate of incorporation)
- Operating agreement (if applicable)
Banks generally offer one savings and checking account, which may not be enough if you’re managing multiple properties or entities. You’ll either need to pay extra for more accounts (if that’s an option) or open separate accounts for each EIN under different logins.
Baselane lets you open unlimited checking and high-yield savings accounts for multiple entities under one login. Easily organize expense accounts and separate deposits, reserves, and emergency funds in savings accounts that earn up to 3.35% APY².
Banking Built for Real Estate Businesses
Open unlimited checking & high-yield savings accounts with no monthly fees.
Step 4: Open and fund your account
Opening a high-yield savings account with Baselane only takes a few minutes, and funding it is just as fast. There’s no minimum deposit or balance requirement, and you won’t have to worry about monthly fees.
How to open a high-yield savings account with Baselane:
- Sign up for a free Baselane account: Head to baselane.com and click “Get Started.” You’ll create a secure login using your email.
- Click “Add Account”: Choose whether you’re opening an account as a Sole Proprietor or under a Business Entity (LLC, partnership, etc.). Baselane supports both individual and business banking setups.
- Complete the application: Provide your personal or business information, including your name, address, SSN or EIN, and upload a valid photo ID (like a driver’s license or passport).
- Get approved and start banking: Once you’re in, you can open unlimited checking and savings accounts, perfect for organizing funds by property or purpose.
How to fund it:
You can fund your new account using any of the following methods:
- Bank transfer: Link an external bank account or digital wallet and initiate a transfer.
- Wire transfer: Receive funds via wire from another bank.
- Cash deposit: Use any in-network ATM (55,000+ Allpoint ATMs) to deposit cash.
- Check deposit: Log in from a mobile device and take a photo of the check
Funds will be deposited into your checking account, which you can instantly transfer to your savings.
Step 5: Set up automatic transfers
Automatic transfers help maximize returns while making sure money is in the right accounts before bills come out. Here’s how to set up one-time or recurring transfers between your Baselane accounts:
- Log in to your Baselane account: From the dashboard, click “Move Money” then select “Transfer Funds.”
- Choose your source and destination: Select the Baselane account you want to transfer from and the savings account you want to transfer to. You can easily label each account by property or purpose (e.g., “Security Deposit Savings – Unit 2B”).
- Set the amount and schedule: Enter the transfer amount and choose whether it should happen once or on a recurring schedule (weekly, monthly, etc.).
- Add property tags (optional): To make bookkeeping easier, tag your transfer to a specific property or expense type. This makes tracking and tax prep seamless.
Best ways to use a high-yield savings account for real estate
A high-yield savings account isn’t just for stashing cash, it’s a strategic tool for smart money management in real estate. Here are some of the most effective ways you can use a HYSA to stay organized, prepared, and profitable:
- Store security deposits: Keep tenant deposits in a separate, interest-earning account while staying compliant with state landlord-tenant laws.
- Build emergency reserves: Set aside cash for unexpected repairs, vacancies, or seasonal expenses without disrupting your operating funds.
- Save for CapEx projects: Prepare in advance for big-ticket items like roof replacements, HVAC upgrades, or full renovations.
- Hold funds for down payments: Let your savings grow while you plan your next property acquisition.
- Separate reserves by property: Track expenses and reserves per property by opening multiple accounts. Baselane makes this simple with unlimited virtual accounts.
- Create a renovation fund: Set up a dedicated account for planned improvements so you’re ready when it’s time to invest in upgrades.
- Earn passive income on idle funds: Whether it’s money reserved for taxes, insurance, or future investments, let your cash earn while it waits.
With Baselane, you can organize each of these savings goals into virtual accounts, all while earning up to 3.35% APY² with no monthly fees or minimums.
Earn up to 3.35% APY² on Baselane high-yield savings accounts
When it comes to high-yield savings accounts for rental property owners, you need more than a one-size-fits-all solution that mixes your funds together and requires manual transfers between accounts.
Baselane’s high-yield savings account is designed specifically for real estate investors and landlords, offering unlimited free sub-accounts for multiple properties and entities with smart transfer rules and schedules for easy separation.
Here’s what makes Baselane’s HYSA stand out:
- Earn up to 3.35% APY² helping you grow your cash faster than most traditional savings accounts.
- No minimum balance or monthly fees: Keep more of your money working for you without worrying about monthly charges or balance thresholds.
- Unlimited virtual accounts: Organize funds by property, reserve type, or business entity, all within one dashboard.
- Integrated bookkeeping and real-time insights: Every deposit, transfer, and withdrawal is automatically tracked and categorized for you.
- Built-in tools for landlords: Seamlessly integrated with rent collection and tenant screening, so everything works together.
With Baselane, your savings work harder and smarter without extra software or hidden fees.
Ready to earn more on your cash? Get started for free today.
FAQs
You can open a high-yield savings account online or at a branch through traditional banks and credit unions. You’ll need to fill out an application and provide the required documents before funding your account. This can take up to one or two days, depending on the provider you choose. You may also need to deposit a minimum amount of money to officially open the account.
With Baselane, you can quickly open a high-yield savings account online without any minimum deposit or balance requirements and no monthly fees.
Most banks require a government-issued ID, Social Security Number (SSN) or Employer Identification Number (EIN), and an existing bank account to fund the new HYSA. You’ll also need formation documents and an operating agreement if applying as a business.
Yes, landlords often use HYSAs to hold reserves, rent income, or security deposits, depending on state laws. Most banking institutions limit the number of business checking and savings accounts, which can make managing funds for multiple properties or entities challenging.
Baselane lets you open unlimited checking and savings accounts for multiple entities under one login to easily separate funds and stay organized.
Most high-yield savings accounts are FDIC-insured up to $250,000 per depositor, per bank. That means your money is protected while it earns more interest than a traditional savings account. Baselane is FDIC-insured for up to $3M¹ on funds deposited via Thread Bank, Member FDIC.
A high-yield savings account offers a much higher interest rate than traditional savings accounts. HYSAs are most commonly offered through online banks, but you can find them at some traditional banks and credit unions, often with lower rates and higher fees. Online HYSAs deliver stronger returns and digital tools ideal for growing reserves or even funding your Roth IRA real estate strategy.
Some banks still cap savings withdrawals at six per month, but this is no longer a federal rule. The Federal Reserve removed the limit in 2020, though individual banks may still enforce it. Always check your bank’s terms before transferring funds to avoid bank fees or restrictions.
You can fund your HYSA through ACH transfers, mobile check deposit, wire transfers, or an internal transfer (e.g., from a checking account with the same provider). Set a reminder for routine transfers to make sure you’re maximizing returns on your rental income. Baselane helps you automate this with scheduled transfers for certain dates and rule-based transfers for dispersing certain amounts into separate accounts.
Start by comparing banks that offer strong APYs, low or no monthly fees, and FDIC insurance. Then apply online, fund your account, and set up automatic transfers to build your savings.
If you’re using HYSAs for security deposit management, check your state laws for escrow requirements to ensure you’re staying compliant. Here’s a guide on how to open an escrow account for security deposits.
