Opening a high-yield savings account does not affect your credit score because the high-yield savings account is a deposit account and not a loan and so opening the high-yield savings account is not reported to the credit bureaus.
However when you do open a high-yield savings account a soft inquiry may be placed on your credit report, which is harmless though and will not lower or affect your credit score.
Although poor management of the high-yield savings account could result in harm to your credit score.
But when used properly the high-yield savings account won't hurt your credit score as you're saving money using the high-yield savings account and not borrowing money, so it does not show up on your credit report as any debt.
The banks though usually run a soft pull on your credit report when opening up a high-yield savings account to verify your identity, which does not impact your credit score.
And savings activity including on high-yield savings accounts are not listed on your standard credit reports like TransUnion, Equifax and Experian.
Having the savings account and savings in the high-yield savings account reduces the need for other loans, credit cards etc for emergencies, and prevents missed payments or high credit utilization which would hurt your credit score.
The highest yielding savings accounts offer Annual Percentage Yields (APYs) around 4.20% to 4.35%, with some potentially reaching up to 5.00% with specific conditions like direct deposits, though these rates fluctuate and depend on the bank and account requirements.
Top contenders for high yield savings account to consider include Newtek Bank, Peak Bank, Openbank, and potentially Varo Bank, but always check for minimum balances, direct deposit requirements, and withdrawal limits when comparing options.