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Key takeaways
- As we head into the second half of 2025, savers are still enjoying competitive high-yield savings account rates of up to 4.44% APY.
- Keeping $10,000 in an account that earns a 4% APY will earn you around $400 in interest in a year’s time.
- Many APYs remain competitive thanks to the Federal Reserve holding its short-term borrowing rate steady so far this year.
Anyone with a high-yield savings account is currently reaping benefits that are twofold: A federally insured account provides a safe place to grow your savings, with the added perk of rates that are currently outpacing inflation.
While savings accounts generally earn variable annual percentage yields (APYs), there’s been overall stability as a result of the Federal Reserve keeping its benchmark rate unchanged in 2025, to date. Top APYs are north of 4 percent, and such inflation-beating rates mean your money isn’t losing purchasing power in a high-yield savings account.
The Fed may lower rates at some point this year, although it remains to be seen exactly when that will happen, and by how much. The next rate-setting meeting takes place July 29-30.
Today’s best savings account rates
The highest-yielding, nationally available savings account is from Peak Bank, an online-only division of Idaho First Bank. It offers a 4.44 percent APY and is available for new accounts only. While Peak Bank isn’t currently on the list of banks monitored by Bankrate’s editorial team, you can find banks with competitive rates on this list — including several that earn a 4.30 percent APY.
Note: Annual percentage yields (APYs) are as of July 7, 2025. APYs for some products may vary by region.
The latest news from the Federal Reserve
The Fed decided to hold rates steady in its June meeting, marking the fourth consecutive rate-setting meeting in which officials left the federal funds rate untouched.
What is the federal funds rate?
Simply put, the federal funds rate is the price of money. Specifically, this rate determines the price of borrowing money and influences various financial decisions and products, such as deposit account APYs, credit card and mortgage rates. The current range of the fed funds rate remains at 4.25-4.5 percent. The Fed’s decision to raise or lower that rate can have a significant impact on the economy, including inflation and employment. Learn more about the federal funds rate in Bankrate’s primer, What is the federal funds rate? How the Fed controls interest rates, explained.
At a press conference following that meeting, Fed Chair Jerome Powell cited uncertainty over the extent to which rates could be impacted by changes to trade, immigration, fiscal and regulatory policies.
Our obligation is to keep longer-term inflation expectations well-anchored and to prevent a one-time increase in the price level to become an ongoing inflation problem
— Jerome Powell | Chairman, Board of Governors of the Federal Reserve
With the Fed keeping rates steady and the possibility of impending cuts in 2025, high-yield savings account rates are expected to remain stable this year, says Elaine King Fuentes, certified financial planner and founder of Family and Money Matters Institute.
Most high-yield savings accounts are offering between 4.3 percent and 5 percent APY right now. Since these rates often move with the Fed, we likely won’t see big changes unless inflation stays lower for at least three to six months… For families and first-generation wealth builders, this is a rare window to earn solid returns on cash without taking much risk.
— Elaine King Fuentes, CFP | Founder, Family and Money Matters Institute
Benefits of a high-yield savings account in today’s rate environment
While experts often say the main benefit of a savings account is that it can provide easy access to your emergency fund, another big perk these days is that many high-yield savings accounts are earning yields at multi-year highs, outside the current rate cycle.
It pays to shop around for the best rates because an APY of 4 percent is hundreds of times greater than the rock-bottom APYs commonly offered at some of the largest U.S. banks. For instance, it’s not unheard of for large, established banks to offer APYs of merely 0.01 percent on savings accounts and certificates of deposit (CDs).
When looking for a savings account, in addition to seeking the highest rate, it’s important to align your savings with your values and goals, King Fuentes says. “A great HYSA is perfect for short-term needs, but if your money is meant for longer-term plan, like funding education, supporting loved ones, or transitioning after a life change, it may be time to explore options like CDs, T-bills or short-term bonds.”
It’s important to review your savings account’s rate regularly and diversify your strategy as needed, King Fuentes says “It’s not just about growing your money, it’s about growing your peace of mind.”
Bottom line
High-yield savings accounts continue to enjoy their moment in the sun, thanks to the Federal Reserve’s current rate pause. As a saver, you’ll not only attain peace of mind from building up your emergency fund, but you’ll also reap the benefits of high APYs north of 4 percent. Be sure to find a savings account that’s covered by federal deposit insurance through either the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).
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