High-yield savings accounts (often called HYSAs in the US, or high-interest savings accounts in Canada) are everyday savings accounts that try to pay a more competitive rate while still letting you get to your money.
They are useful for emergency funds and near-term plans. The rate can still change, so they are not the same as a locked CD or GIC.
Does the top rate apply to all of your money?
Some offers pay 5% on the first $5,000 and much less above that. On a $50,000 balance, that is not really a 5% account. Work out what you would earn on your full balance.
Introductory rates that last only a few months need the same treatment: what do you earn after the higher rate ends?
Transfers and deposit protection
Before you move your emergency fund, test a small transfer in and out. See how long withdrawals take.
In the US, check FDIC cover at the bank that holds the deposit (or NCUA at a credit union). In Canada, check CDIC membership where it applies. If you use an app, find out which bank is named in the agreement.
Where this money belongs
Good uses: emergency savings, bills coming up, money waiting for a fixed term or a longer-term decision. Less suitable as a forever home for money you will not need for many years, unless you have deliberately chosen safety over long-term growth.