The Federal Reserve cut the federal funds rate three times by the end of 2024. As a result, deposit rates are falling from their historic highs.
Still, it’s possible to find high-yield savings accounts that pay an APY above 4%. So if you’re looking for the best rates available today, here’s an overview of where you can find them.
Although savings rates are high by historical standards, the national average interest rate for savings accounts is still only 0.42%, according to the FDIC. The good news: The best high-yield savings accounts offer more than ten times the national average.
As of January 10, 2025, the highest interest rate on savings accounts offered by our partners is 4.75% APY. This rate is offered by Openbank and requires a minimum opening deposit of $500.
Here’s a look at some of the best savings rates available today from our verified partners:
Remember, it’s important to shop around before opening a savings account. Interest rates vary widely, but there are several banks (particularly online banks) and credit unions with very competitive offers.
Related: 10 best savings accounts with high returns >>
Online banks operate exclusively via the Internet. This significantly reduces their overhead costs so they can pass these savings on to customers in the form of high deposit rates and low fees. Many of the best high-yield savings accounts don’t even have monthly fees or minimum opening deposit requirements. If you’re looking for the best savings interest rates, online banks are a good place to start.
That said, online banks aren’t the only places you can find savings accounts with rates ranging between 4% and 5% APY. Credit unions are not-for-profit financial cooperatives and are also known for their competitive rates and lower fees. Many credit unions have certain requirements that must be met in order to join, although there are some that allow just about anyone to join.
Read more: This is why online banks offer the highest savings interest rates
Savings accounts are one of the safest places you can keep your money. They are insured by the FDIC (or the NCUA in the case of credit unions), which means your deposits are protected up to $250,000 if your financial institution fails. They also cannot lose money due to market fluctuations.
However, a savings account is not always the right choice. While today’s savings rates are high by historical standards, they still don’t offer the same returns you could get by investing your money in the market. For long-term savings goals like retirement, you’ll need to invest a large portion of your savings in higher-risk (but higher-reward) market investments such as stocks, index funds, and mutual funds to reach your goal.
But if you’re saving for a shorter-term goal, like a down payment on a house, vacation, or even an emergency fund, a high-yield savings account is one of the best options. This is especially true if you want to have access to your money when necessary; Other types of high-yield deposit accounts, including money market accounts and certificates of deposit (CDs), place more restrictions on how often you can withdraw money.
