The Federal Reserve cut the federal funds rate thrice in late 2024. Consequently, deposit rates of interest are falling from their historic highs.

Still, it’s possible to search out high-yield savings accounts paying above 4% APY. So, when you’re in search of the most effective rates available today, here’s a breakdown of where to search out them.

Although savings rates of interest are elevated by historical standards, the national average rate for savings accounts remains to be just 0.42%, in response to the FDIC. The excellent news: Top high-yield savings accounts offer greater than 10 times the national average.

As of January 24, 2025, the very best savings account rate offered by our partners is 4.75% APY. This rate is obtainable by Openbank and there may be a $500 minimum opening deposit required.

Here’s a have a look at a few of the most effective savings rates available today from our verified partners:

Remember, it’s essential to buy around before opening a savings account. Rates of interest vary widely, but there are several banks (particularly, online banks) and credit unions with highly competitive offers.

Related: 10 best high-yield savings accounts>>

Online banks operate exclusively via the online. This significantly reduces their overhead costs, so that they’re in a position to pass those savings onto customers in the shape of high deposit rates and low fees. In truth, a lot of the most effective high-yield savings accounts also include zero monthly fees or minimum opening deposit requirements. Should you’re trying to find the most effective savings rates of interest, online banks are a fantastic place to begin.

That said, online banks aren’t the one place you’ll find savings accounts with rates that range between 4% and 5% APY. Credit unions are not-for-profit financial cooperatives and are also known for providing competitive rates and fewer fees. Many credit unions have certain requirements that have to be met with a purpose to turn out to be a member, though there are some that allow nearly anyone to hitch.

Read more: Here’s why online banks offer the very best savings rates of interest

Savings accounts are one in all the safest places you possibly can put your money. They’re insured by the FDIC (or the NCUA within the case of credit unions), which suggests your deposits are protected as much as $250,000 in case your financial institution fails. Additionally they can’t lose money attributable to market fluctuations.

Nonetheless, a savings account isn’t at all times the suitable alternative. Although today’s savings rates of interest are high by historical standards, they still don’t offer the identical returns you would achieve by investing your money available in the market. For long-term savings goals reminiscent of retirement, you want to invest a bulk of your savings in higher risk (but higher reward) market investments reminiscent of stocks, index funds, and mutual funds to achieve your goal.

But when you’re saving for a shorter-term goal reminiscent of a down payment on a house, vacation, and even an emergency fund, a high-yield savings account is top-of-the-line options. That’s very true if you must access your money as needed; other varieties of high-yield deposit accounts, including money market accounts and certificates of deposit (CDs) place more restrictions on how often you possibly can make withdrawals.