The Federal Reserve cut the federal funds rate thrice this yr, which suggests deposit account rates are also on the decline. It’s more vital than ever to make sure you’re earning the very best rate possible in your savings, and a high-yield savings account could possibly be the answer.

These accounts pay more interest than the everyday savings account — as much as 4% APY and better in some cases. Undecided where to seek out the most effective savings rates of interest today? Read on to seek out out which banks have the most effective offers.

Basically, high-yield savings accounts offer higher rates of interest than traditional savings accounts. Still, rates vary widely across financial institutions. That’s why it’s vital to buy around and compare rates before opening an account.

As of January 20, 2025, the very best savings account rate available today is 3.90% APY. This rate is obtainable by Marcus by Goldman Sachs and there isn’t any minimum opening deposit required.

Read more: Every little thing you have to know in regards to the Marcus by Goldman Sachs savings account

As you will see, the vast majority of top savings rates come from online banks. These institutions have much lower overhead costs than traditional banks, so that they can pass those savings on to customers in the shape of upper rates and lower fees.

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

Related: 10 best high-yield savings accounts today>>

A high-yield savings account will be a great fit in case you’re in search of a secure place to store your money and earn a competitive rate of interest while maintaining liquidity. Traditional savings accounts and certificates of deposit (CDs) have a number of the highest rates of interest we’ve seen in greater than a decade, because of recent rate of interest hikes by the Federal Reserve. Even so, the national average for these rates is fairly low in comparison with the highest offers available.

For instance, the common savings account rate is just 0.42%, while 1-year CDs pay 1.83%, on average, in line with the FDIC. The Fed can also be expected to lower its goal rate again in 2025, which suggests now is perhaps the last probability for savers to make the most of today’s high rates.

Taking the time to check accounts and rates from various financial institutions will allow you to secure the most effective deal available. Nonetheless, rates of interest aren’t the one factor to think about when selecting a savings account.

For instance, some banks may require that you just maintain a minimum balance to earn the very best advertised rate and avoid monthly fees. Other aspects to guage include customer support options and hours, ATM and branch access, digital banking tools, and the general financial stability of the institution. Moreover, before opening a savings account, make certain that it’s insured by the Federal Deposit Insurance Corporation (FDIC) — or the National Credit Union Administration (NCUA) if it’s held by a credit union — so your money is protected in case the institution fails.

Read more: The way to open a savings account: A step-by-step guide