The best high-yield savings accounts offer annual percentage yields (APYs) that are well above average. Many of the top rates available today are above 4.00%, and one or two are still around 5.00%.
TL;DR
- Earn up to 5.00% APY on savings accounts, with Varo Money offering the highest rate.
- High-yield savings accounts offer significantly higher rates than the national average of 0.40%.
- Online banks often provide higher APYs due to lower operating costs compared to traditional banks.
- Ensure accounts are FDIC-insured for protection against loss, though inflation can reduce purchasing power.
Inflation rates have been edging higher and the U.S. Economic outlook is cloudy. That means the Federal Reserve has held off on rate cuts for the past several months—but finally proceeded with the first rate cut of the year at its September meeting, citing slowing job gains. Then, the central bank made a second cut in October.
While savings account APYs remained relatively stable during the first part of the year, they may well dip in light of the recent cuts, especially if financial institutions anticipate a third reduction when the Fed meets in December.
Whether you’re looking for a better return on your savings, or just want to open a new account for a new financial goal, Coins2Day has partnered with the financial industry consultants at Curinos to give you an accurate look at the highest savings account rates available today.
Top savings yields: Up to 5.00% APY
The best high-yield savings account rate of 5.00% can be found at Varo Money. Axos Bank and SoFi also offer highly competitive rates. Coins2Day monitors the top rates offered by leading U.S. Financial institutions to help readers obtain the best possible return on their savings. Here are the highest savings account rates:
FDIC deposit rates Jan 2020-now
Choosing a high-yield savings account guarantees that you can beat the low average rates offered by most savings institutions in the U.S. The national average savings rate right now is 0.40%. This is down from 0.47% in March 2024, months before the Fed reduced interest rates in late 2024.
2025 High-yield savings updates
The Fed’s decision to lower interest rates last year had an immediate impact on savings accounts. Average savings rates tend to follow the lead of the federal funds rate: When the Fed raises its benchmark rate, banks generally raise APYs on savings accounts to remain competitive. Conversely, when the central bank cuts rates, savings account yields decline.
Just keep in mind that while this correlation is true for average rates, individual banks decide to raise or lower their savings account APYs based on a variety of factors beyond just Fed rates. These include their own financial goals, promotions for attracting new customers, and other market conditions. Beware, banks can change your savings account APY at any time, for any reason.
The Fed cut the federal funds rate three times in Q4 of 2024, reducing it to 4.25%-4.50%. Then, it reduced the rate by a quarter percentage point each time at its September and October 2025 meetings, to where it currently stands at 3.75%-4.00%.
Banks may have incentive to reduce their APYs in light of this and the possibility of one additional cut when the Fed meets in December
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High-yield savings: a smart choice?
To be clear, there’s no such thing as a special class of bank accounts called “high-yield savings accounts.” There’s simply a group of U.S. Financial institutions that tend to offer savings account rates that are much higher than the industry average. Financial experts call them high-yield savings accounts.
For instance, the typical U.S. Savings percentage Is 0.40%, many high-yield savings accounts provide rates exceeding 4.00%—which is approximately ten times the typical rate.
Financial institutions providing traditional savings accounts with reduced interest rates typically possess physical branch locations and provide a comprehensive selection of deposit and loan services. Typically, institutions providing high-yield savings accounts are online banks with a restricted selection of other banking services and no physical branch access.
For individuals seeking the maximum potential returns on their deposited funds, a high-yield savings account is the recommended choice. These accounts frequently lack minimum balance requirements or monthly fees, positioning them as an excellent option for your emergency fund or short-term financial objectives. The Federal Deposit Insurance Corp. Insures online banks. (FDIC), offering identical safeguards to those found in traditional financial institutions.
When selecting a savings account, keep these elements in mind:
- Interest rates: Look for competitive APYs to maximize your earnings.
- Low or no minimums: Many high-yield accounts have no minimum balance requirements.
- No monthly fees: Avoid accounts with monthly maintenance fees that can eat into your savings.
- Accessibility of funds: Make sure you can readily access or move funds as required; certain financial institutions impose limits on withdrawals and levy fees for foreign ATMs.
- Security and insurance: Verify that the account is FDIC-insured.
Regardless of the savings account you possess, you can expect to pay taxes on any interest you accrue.
Commonly posed questions
High-yield savings account APYs typically fluctuate quite frequently.
The frequency with which the interest rate on your high-yield savings account is adjusted isn't fixed. Your financial institution reserves the right to modify this at their discretion. Generally, it's a good guideline to assume that when the Federal Reserve adjusts its primary federal funds rate, banks will probably raise or lower the rates they provide to customers. Therefore.
Considering a bank change for a savings account offering a better interest rate is a valid question.
The short answer is “maybe.” You're able to open as many savings accounts as you'd like across various financial institutions. However, a minimum deposit might be necessary to qualify for an account's highest APY. You should also consider the magnitude of the rate difference and if the extra interest gained justifies the work involved in switching.
If you were to deposit $1,000 into an account yielding 4% APY and make no further deposits for a year, you'd likely earn around $39.98 in interest. If the same account had a 4.5% APY, you might earn $44.98 under the same circumstances.
Withdrawing funds from a High-Yield Savings Account (HYSA) is generally straightforward.
This can vary by institution. But in general, many banks will let you link external accounts digitally, so initiating a transfer should be something you can do with a few clicks. Although no longer a federal mandate, many financial institutions continue to enforce a limit of six withdrawals from savings accounts each statement period.
Is an online-only bank the right choice for My High-Yield Savings Account?
Because they’re able to keep costs associated with brick-and-mortar locations down, an online-only bank might be able to offer a higher APY than you’re likely to find elsewhere. Because of this, they're a good choice to think about when you're looking for a savings account that offers a high yield.
Can savings accounts lose value?
Ensure your savings are covered by The Federal Deposit Insurance Corporation (FDIC) for bank accounts or the National Credit Union Administration (NCUA) for credit union accounts before opening one. A cooperative financial institution. That should protect you against losing money.
It’s also worth noting that money in a savings account is not at risk of a loss in the same way as money invested in the stock market. However, your money could still lose purchasing power if inflation outpaces your account’s APY.
Series on daily savings rates created by former Coins2Day editor Cassie Bottorff. This edition has been updated by Editor, Evergreen Content Glen Luke Flanagan.