Max 5.00% APY on top savings account Oct. 29, 2025.

The Federal Reserve has held off on additional rate reductions for the last few months, a decision influenced by escalating inflation and a shaky economic outlook. However, that shifted at the central bank's September meeting. During the 16-17 meeting, the Fed reduced the federal funds rate by a quarter of a percentage point.

In early 2025, savings account annual percentage yields (APYs) stayed largely consistent, though they're expected to decline should markets foresee further reductions in the Federal Reserve's interest rates. With two additional Fed meetings scheduled before year's end, further reductions are certainly feasible.

To help investors seeking to boost their profits or save for a new financial objective, Fortune has partnered with Curinos, a group of financial sector specialists, to offer insights into the most advantageous high-yield savings account pricing options currently offered.

Current top high-yield savings account rates offer up to 5.00% APY.

The top savings account rate is available from Varo Bank, which provides an APY of up to 5.00%. As part of our ongoing commitment to help readers optimize their savings, Fortune continuously monitors the top rates offered by leading U.S. Financial entities. See the best savings account interest rates here:

FDIC's average national deposit rates: January 2020 through today

The rates listed above are significantly higher than the national average of 0.41%% that you’ll find on many accounts. Following the Fed's recent interest rate reductions, this average has seen a decline, dropping from a peak of 0.47% in March 2024.

Financial updates for savings accounts in the upcoming year.

Savings account interest rates are significantly influenced by The Federal Reserve's monetary policy choices. Financial institutions generally raise the annual percentage yields (APYs) on savings accounts to stay competitive when the Fed increases its benchmark rate. When the central bank reduces interest rates, the returns on savings accounts typically decline.

The federal funds rate is currently set at 4.00%-4.25%. Following the December 2024 meeting, it stayed at 4.25%-4.50% for an extended period, but the central bank reduced it by a quarter percentage point during its September meeting. March 16-17, 2025.

Savings account APYs might decrease, particularly if financial institutions expect the Fed to lower rates again during their October and December meetings this year.

However, it's important to remember that the connection between Federal Reserve interest rates and the returns on savings accounts isn't always straightforward. Banks modify their savings account interest rates due to several influences, such as their internal financial goals, strategies for acquiring new clients, and prevailing economic circumstances.

Discovering a high-yield savings account is crucial for several reasons.

High-yield savings accounts distinguish themselves from traditional ones primarily through their interest rates, which are generally 10 to 20 times greater than those of conventional accounts. For example, while the national average savings rate is 0.41%, many of the high-yield accounts on our list offer rates above 4.00%.

While traditional accounts usually provide physical branch access, they tend to have lower interest rates, whereas online banks typically offer high-yield accounts. These offer increased rates but lack in-person service choices. Regardless of your account type, you'll have earned owe the IRS a portion of the interest.

Beyond significantly higher interest rates, these accounts offer additional advantages. These accounts frequently don't have minimum balance rules or charge monthly service fees. Your readily available cash is perfect for building an emergency fund or meeting immediate savings objectives. These digital accounts maintain FDIC insurance, offering identical safeguards to those found in conventional banking institutions.

Consider these elements when evaluating savings accounts:

• Interest rates: Look for competitive APYs to maximize your earnings.
• Minimum balance requirements: Many high-yield accounts have no minimums.
• Fee structure: Avoid accounts with monthly maintenance fees.
• Fund accessibility: Ensure easy withdrawals or transfers when needed, preferably without charging foreign ATM fees
• Security: Verify FDIC insurance coverage.

Commonly posed questions

Cassie Bottorff, a former Fortune editor, developed a series focusing on daily savings rates. Glen Luke Flanagan, Editor, Evergreen Content, updated this edition.