Joseph Sohm — Visions of America; Getty Images
Key takeaways
- Consumers with money in a high-yield savings account continue to benefit from rates that are well above 4% APY.
- The Federal Reserve is widely expected to hold the federal funds rate steady next week, which may mean continued stability for deposit account rates.
- The Fed could cut rates later in 2025, so now is the time to take advantage of high savings APYs.
So far in 2025, the biggest winners in personal finance just might be anyone who’s squirreling away money in a high-yield savings account (HYSA). This type of account currently offers dual benefits: it provides easy access to your funds while top-yielding rates pay around seven times greater than the national average for savings accounts.
Many savings account yields remain elevated because the Federal Reserve has held its benchmark federal funds rate steady since December 2024, with Fed Chair Jerome Powell commonly citing inflation that remains above the Fed’s 2 percent target.
Policymakers are widely expected to maintain their holding pattern at next week’s rate-setting meeting, despite repeated criticism from President Donald Trump, who posted in June on social media that officials are costing taxpayers “trillions of dollars in interest cost” by keeping rates high.
In related news, rumors surfaced last week that Trump had consulted with GOP lawmakers regarding the possibility of firing Powell. According to reports, the president suggested he could terminate Powell for cause, claiming the Fed overspent on renovating its office buildings.
News of a possible Powell firing sparked a drop in stocks and the dollar, and Trump subsequently downplayed plans to try and oust the Fed chair. “I don’t rule out anything, but I think it’s highly unlikely,” Trump told reporters. “Unless he has to leave for fraud.”
Political pressure notwithstanding, central bank policymakers have kept the federal funds rate unchanged for months — and they may continue to do so at next week’s rate-setting meeting.
Today’s best HYSA rates
Rates on the best high-yield savings accounts currently range up to around 5 percent annual percentage yield (APY). For instance, a 5 percent APY can be earned on up to $5,000 of your balance in a savings account from Varo Bank when set requirements are met. The account earns a 2.50 percent APY on additional balance portions.
Another high-earning option is Peak Bank, which offers a 4.44 percent APY on new savings accounts. Neither of these two accounts appear on Bankrate’s list below; in Varo Bank’s case, it’s due to the extra restrictions and requirements, while Peak Bank isn’t currently monitored by Bankrate’s editorial team.
Note: Annual percentage yields (APYs) are as of July 21, 2025. APYs for some products may vary by region.
Fed moves could impact HYSA rates
Despite pressure from the Trump administration, the Fed may be in no rush to make any changes to interest rates. The consumer price index (CPI), a measure of inflation, ticked up to 2.7 percent over the last 12 months ended in June, which could give the Fed reason to continue its holding pattern. Some officials have stated that Trump’s tariff policies have yet to have their full effect on the inflation rate.
The tariffs are likely to spur further inflation, Federal Reserve Bank of New York President John Williams said in remarks July 16 at the New York Association for Business Economics.
It’s important to note that it’s still early days for the effects of tariffs, which take time to come into full force. Although we are only seeing relatively modest effects of tariffs in the hard aggregate data so far, I expect those effects to increase in coming months.
— John Williams, President and CEO | Federal Reserve Bank of New York
While savings account rates are variable, they’ve remained relatively stable in recent months as the Fed maintains its holding pattern. Competitive banks tend to increase their APYs when the Fed raises its benchmark rate — and they lower their APYs, in turn, when the Fed cuts the federal funds rate.
What to look for in the best HYSA
It’s important for savers to consider various account features when shopping around for the best HYSA:
When selecting a HYSA, it’s important to find a bank that provides a good user experience that makes it easy to navigate the website and transfer money, says Lauren Zangardi Haynes, CFP, CIMA, certified financial planner at Spark Financial Advisors.
Zangardi Haynes also encourages consumers to be wary of high APYs that are only part of a limited-time promotional offer.
Beware of teaser rates used to attract deposits that might not be sustainable for the bank. I would rather work with a bank that has a history of competitive high-yield savings account rates vs. simply selecting the highest-yielding account at this moment in time.
— Lauren Zangardi Haynes, CFP, CIMA, certified financial planner | Spark Financial Advisors
Another type of deposit account with rates that are currently elevated is certificates of deposit (CDs). The best CD rates are often similar to those of HYSAs these days, although CDs usually have fixed rates, meaning they lock in the same APY throughout the entire term. This can make them an attractive option for savers who believe the Fed will lower rates in coming months.
Bottom line
With the Fed likely to hold rates at their current level for the near term, savers with a HYSA are enjoying APYs that are well above the rate of inflation. Finding the right savings account ensures you’re reaping the benefits of an attractive yield as you save for emergencies or life goals.
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