Definition
A savings account, often at an online bank, that pays a higher interest rate than a typical bank savings account.
The story
The rate often moves with the Fed's rate, though banks aren't required to follow it. At banks insured by the FDIC (Federal Deposit Insurance Corporation), deposits are protected up to $250,000 per depositor, per bank, per ownership category.
Why markets watch it
It's where the Fed's rate decisions show up most directly for savers.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms