High-yield savings account

HYSAs are the normal place for US emergency funds. They are FDIC-insured up to the relevant limits and allow quick transfers to a checking account. Online banks often offer better rates than traditional branches because they have lower overheads.

Rates move with the federal funds rate and the competitive landscape, so the best account today may not be the best account in a year. There is usually no commitment period, unlike a certificate of deposit.

The UK equivalent is an easy-access savings account. Both are designed for cash you might need soon, not for long-term growth.