A High Yield online savings account is a savings account managed and funded exclusively on the Internet.They are often characterized by high yields, which far surpass those of traditional savings accounts. By eliminating paperwork and reducing overhead costs, banks are able to pass the savings onto the customer.

Online savings accounts, which are being increasingly considered as part of a larger investment strategy, offer yields that currently compare favorably with stocks and bonds, as well as the liquidity of a savings account, the convenience to transact online. Many of these high-yield accounts have no fees, no minimum balance, and no lock-up period. Account holders may link their OSAs to their existing external bank accounts for easy transfer of funds between multiple accounts. Some also offer ATM cards so customers can directly access the funds in their accounts.