High-yield savings accounts continue to offer strong rates of return for those seeking to maximize their savings potential. With many accounts currently featuring annual percentage yields (APYs) surpassing 4.00%, and a select few still hovering near the 5.00% mark, it’s a great time to make sure you have the best account for your financial needs.
TL;DR
- Top savings accounts offer up to 5.00% APY, with Varo Money, Axos Bank, and SoFi providing competitive rates.
- Federal Reserve rate cuts in September and October 2025 may lead financial institutions to decrease savings account APYs.
- High-yield savings accounts, often from online banks, offer significantly higher rates than traditional accounts and are FDIC-insured.
- Consider switching banks for better interest rates, but assess minimum deposit rules and potential earnings before moving funds.
The current economic environment is characterized by rising inflation rates and an ambiguous U.S. Economic outlook. For those reasons, the Federal Reserve halted its rate-cutting measures in the first part of 2025. But the central bank finally delivered a much anticipated rate cut at its September meeting, and a second in October.
Savings account APYs remained relatively stable during the first part of the year—but, after the recent Fed rate cuts and the potential for another when the Federal Open Market Committee (FOMC) meets in December, financial institutions might decrease the APYs they offer accordingly.
Recognizing the importance of informed financial decision-making, Coins2Day has partnered with Curinos, a team of esteemed financial industry consultants. This collaboration aims to provide readers with a precise and up-to-date snapshot of the most competitive savings account rates available in today’s market, catering to those looking to enhance their savings strategy or embark on new financial endeavors.
Top savings accounts: Earn up to 5.00% APY
Coins2Day reviews the top rates offered by leading U.S. Financial institutions each day to help readers obtain the best possible return on their savings. The best high-yield savings account rate of 5.00% can be found at Varo Money. Other institutions also offering generous rates include Axos Bank and SoFi. Here are the best savings account rates available nationwide:
FDIC deposit rates: Jan 2020-now
In March 2024, the national average savings rate was 0.47%. This rate quickly began to fall as the Federal Reserve started making cuts to the federal funds rate later in the year. Now, the national average savings rate sits at 0.40%.
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2025 Savings update
Federal Reserve interest rate decisions are crucial in shaping savings account rates. When the Fed raises its benchmark rate, financial institutions typically follow suit by increasing the interest they offer on savings accounts to remain competitive. Conversely, when the Fed lowers rates, savings account yields generally decrease.
However, this relationship isn’t always direct. Banks may adjust their rates based on a variety of factors, including their own financial objectives, efforts to attract new customers, and broader market conditions.
Fed meetings take place roughly eight times annually. The central bank adjusted the federal funds rate to 3.75%-4.00% at its October meeting. There’s one more FOMC meeting on the calendar for 2025, set for December 9-10.
Savings accounts: higher yields than you think
You may have already taken a look at the accounts available from local banks and been unimpressed with the rates offered, or wondered why there are no specific products labeled “high-yield savings accounts.” That’s largely because the primary difference between high-yield and traditional savings accounts is simply the interest rate offered. Traditional accounts often feature physical branch access but with lower rates, while high-yield accounts are typically offered by online banks and boast higher rates but limited in-person services.
High-yield accounts typically provide rates that are 10 to 20 times higher than conventional accounts. For example, while the national average savings rate is 0.40%, many high-yield accounts offer rates above 4.00%.
In addition to substantially higher interest rates than traditional savings accounts, consider opening a high-yield savings account if you want to avoid minimum balance requirements or monthly fees. Oftentimes, the two go hand in hand. These accounts are ideal for emergency funds or short-term savings goals and are FDIC-insured, providing the same protection as traditional banks. Just remember that you’ll have to pay taxes on any interest you earn from the account.
Commonly posed inquiries
High-yield APY changes
Banks and credit unions can adjust high-yield savings account rates whenever they see fit, so there’s no regular schedule. However, in reality, these adjustments frequently happen when the Federal Reserve decides to increase or decrease the federal funds rate.
Consider changing banks if you discover a savings account offering a better interest rate.
It could be worth switching, but it depends on your situation. While you're welcome to open several savings accounts, it's wise to check any minimum deposit rules and assess if a better interest rate will truly boost your earnings substantially before you switch.
For example, putting $1,000 in an account where the APY is 4% and leaving it for a year without further deposits might net approximately $39.98 in interest. If that same account offered an APY of 4.5%, your interest earnings for the year could be $44.98.
Withdrawing funds from a High-Yield Savings Account (HYSA) is generally straightforward.
If your bank or credit union offers a capable online banking system, you should find it straightforward to start a withdrawal using your computer or mobile device. Many financial institutions continue to enforce a limit of six withdrawals monthly, despite this no longer being a federal regulation.
Is an online-only bank the right choice for My High-Yield Savings Account?
Online banks' reduced overhead, such as not needing to maintain physical branches, often allows them to offer customers better rates on their HYSAs, positioning them as a compelling choice.
Can you lose money in HYSA?
If your account is with an FDIC or NCUA insured institution, your savings are covered up to the maximum insurance limit. Even if your account's annual percentage yield (APY) doesn't keep pace with or surpass inflation, your purchasing power might still decline.
A series focusing on daily savings rates, developed by ex-Coins2Day editor Cassie Bottorff. Glen Luke Flanagan, Editor for Evergreen Content, revised this edition.