This is a look at how savings accounts are added today, view below. The Fed cut federal funding rates three times at the end of 2024, meaning deposit rates are now falling. It is more important than ever to ensure that you get the highest interest rate in your savings, and a high yield savings account may be the solution.
These accounts pay up to 4% and higher interest rates than a typical savings account. Not sure where to find the best savings rate today? Read on to find out which banks have the best deals.
Historically, savings account interest rates have been high. That is, the rates on traditional savings accounts are pale compared to high-yield savings accounts.
For example, the average savings account rate is only 0.42%, while the optimal savings rate is usually around 4% to 4.5%.
As of June 25, 2025, our partners offer the highest savings account interest rate of APY with 4.31%. This rate is provided by VIO Bank and does not require a minimum deposit.
Here are some of the best savings rates available today by our proven partners:
The deposit account interest rate (including savings rate) is related to the federal funds rate. This is the target interest rate set by the Federal Reserve; deposit account interest rates usually increase when the target rate is increased. Conversely, deposit rates fall when the Fed lowers its interest rates.
After the Fed's response to soaring inflation surges grew rapidly, it eventually tripled the federal funding rate by the end of 2024. Therefore, deposit interest rates have also dropped.
Experts expect the Fed to lower its target rate twice in 2025, so we can expect savings account interest rates to continue to decline this year. However, a high-yield savings account remains one of the best places to store cash safely and earn the best deposit rate.
Read more: My Bonds vs. High Yield Savings Account: Which Better Beat Inflation?
Choosing where to put money is an important decision, and there are some factors to consider when evaluating options. If you are looking for a safe place to hold shorter savings while earning reliable returns, a high yield savings account may make a lot of sense. Here are some key considerations:
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interest rate: One of the most important features of a savings account is interest rates. It’s important to shop around and compare the best quotes to ensure your money grows over time. Given that savings rates may drop in the near future, opening a high yield savings account now will allow you to take advantage of historically high interest rates.
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Target: Today’s high-yield savings account offers rates that we haven’t seen in over a decade. That is, the savings rate still does not match the average return of the stock market. If you are saving for long-term goals like retirement, a savings account may not be the best money, as your balance won’t grow at the rate that gets you to your goal. But if you are saving for a financial emergency, down payment for a home or car, gift for a holiday, or other short-term goal, a savings account is a great place to hold those funds.
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Accessibility: Some types of accounts and investments may provide higher returns than savings accounts, but may put your funds in a strait. For example, if you put a saved Certificate of Deposit (CD) in and you need to obtain funds before the expiration date, you may be subject to an early withdrawal penalty. So, if you want to be able to save as much as you want, a high yield savings account may be a better option.
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Safety: In most cases, savings accounts are covered by FDIC to federal restrictions. They can’t lose money either due to volatility in the market, which makes it a low-risk option.
Read more: Can you negotiate a higher savings account rate with your bank?
