The Federal Reserve cut the federal funds rate three times at the end of 2024, meaning deposit rates are now falling. It’s more important than ever to make sure your savings are getting the highest rate possible, and a high-yield savings account could be the answer.
These accounts pay more interest than the typical savings account – up to 4% APY and above. Not sure where to find the best interest rates for savings today? Read on to find out which banks offer the best deals.
Historically, interest rates on savings accounts have been high. That said, the rates on traditional savings accounts pale in comparison to those offered for high-yield savings accounts.
For example, the average savings account rate is just 0.42%, while the best savings interest rates are typically around 4.0% to 4.5% APY.
As of January 8, 2025, the highest savings rate available today from our partners is 4.75% APY. This rate is offered by Openbank and a minimum opening deposit of $500 is required.
Here’s a look at some of the best savings rates available today from our verified partners:
Related: >;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;” class=”link yahoo-link”>10 Best High Yield Savings Accounts in 2025>>
Deposit account rates – including savings rates – are tied to the federal funds rate. This is the target interest rate set by the Federal Reserve; when it increases its target rate, deposit account rates generally increase. And conversely, when the Fed lowers rates, deposit rates fall.
After multiple interest rate hikes by the Fed in response to soaring inflation, it finally lowered the federal funds rate three times in late 2024. As a result, deposit rates are also falling.
Experts predict the Fed will cut its target rate another two times in 2025, so we can expect savings account rates to continue falling this year. However, high-yield savings accounts remain one of the best places to store money safely and benefit from the best deposit rates available.
Learn more: I bonds or high-yield savings account: what is the best way to beat inflation?
Choosing where to put your money is a big decision, and there are a few factors you should consider when evaluating your options. A high-yield savings account may be a good idea if you’re looking for a safe place to keep your savings short-term while earning a solid return. Here are some key considerations:
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Interest rate: One of the most important features of a savings account is the interest rate. It’s important to shop around and compare the best deals to ensure your money grows over time. Knowing that savings rates are likely to fall in the near future, opening a high-yield savings account now will allow you to take advantage of historically high rates.
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Goals: Today’s high-yield savings accounts offer rates we haven’t seen in over a decade. That said, savings rates still don’t match average stock market returns. If you’re saving for a long-term goal like retirement, a savings account probably isn’t the best place to put your money, since your balance won’t grow at a rate that will allow you to reach your goal. However, if you’re saving for a financial emergency, a down payment on a house or car, holiday gifts, or another short-term goal, a savings account is a great place to keep those funds.
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Accessibility: Certain types of accounts and investments may offer higher returns than a savings account, but can make it difficult to access your funds at a moment’s notice. For example, if you put your savings in a certificate of deposit (CD) and need to access the money before the maturity date, you could be subject to an early withdrawal penalty. So, if you want to be able to draw on your savings as needed, a high-yield savings account is probably the best choice.
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Security: In most cases, savings accounts are FDIC insured up to the federal limit. They also cannot lose money due to market fluctuations, making them a low-risk option.
Learn more: Can you negotiate a higher savings rate with your bank?
