Getting the best rate as a saver became a little more difficult after the Federal Reserve started cutting its benchmark rate toward the end of 2024. Fed officials lowered the federal-funds rate a total of 75 basis points in 2025, but have so far decided to keep rates steady throughout 2026, including at their most recent July meeting. However, three officials wanted to raise rates by a quarter of a percentage point at this meeting, according to the Fed’s statement, reflecting the growing pressure the central bank is under to tame inflation. If officials vote to raise rates later this year, savers could start to see higher returns on their balances.
With the average savings account paying 0.38%, according to the Federal Deposit Insurance Corporation (FDIC), it might feel a little bleak for savers. However, high-yield savings accounts still offer a way to get a little more yield. The best high-yield savings account pays a much higher yield.
Indeed, the top 1% average savings account rate is 3.86% APY you might be able to check with a credit union or community bank. For example, Lee Bank in Massachusetts offers an APY of 4.00% with an opening deposit of $10
Today’s best savings APYs
The highest APYs available are often offered by online banks. Check for those with FDIC insurance, or if you find a credit union, make sure it’s insured by the National Credit Union Administration (NCUA). Here are today’s top rates:
- GO2bank: 4.50% (APY offered on balances up to $5,000)
- St. Mary’s Credit Union:4.50% (APY offered on balances up to $50,000)
- Elevault: 4.34% (No minimum deposit or requirements to earn the highest APY)
- Axos Bank:4.21% ($1,500 checking/savings balance and direct deposit requirements to earn the highest APY)
- Newtek Bank: 4.20% (No minimum deposit or requirements to earn the highest APY)
- Pibank:4.10% (No minimum deposit or requirements to earn the highest APY)
- 316 Financial:4.05% ($1 minimum deposit to open an account)
- Climate First Bank: 4.01% ($50 minimum deposit to open an account)
- Vio Bank:4.00% ($100 minimum to earn the highest APY)
- First Bank of the Lake: 4.00% ($2,500 minimum to earn the highest APY)
Historic savings and Fed rate trends
Why aren’t all savings accounts high-yield?
While high-yield savings accounts (HYSAs) follow many of the same standard rules as traditional savings accounts, the primary difference is the interest rate the bank is willing to pay you.
Banks and credit unions set their rates based on market conditions and the financial institution’s goals. The yield financial institutions pay on a savings account is money they pay you, so they want to maximize profits.
A higher yield means your balance can grow more in the account, making it an important feature for savers. A proprietary WSJ Intelligence study of n=265 readers found that 58% of respondents would prefer a high-yield account when opening a new savings account. Only 22% would choose a traditional savings account.
How HYSAs work
High-yield savings accounts are deposit accounts designed to pay a yield that’s much higher than the national average. Financial institutions determine how much money they can make on the spread between what they’re paying you as a yield and how much money they make in interest from a borrower.
If a bank or credit union is earning 9% in annual interest from a loan, it might be more likely to pay you a yield of 4.40%. The amount of money it earns from the loan offsets what it pays you—with room for profit.
Pay attention to restrictions that sometimes come with HYSAs. For example, some savings accounts limit the number of withdrawals and transactions you can complete in a month. Others might require a minimum deposit to open an account or have limits on your APY based on your balance.
How traditional savings accounts work
Traditional savings accounts work the same as HYSAs. However, unlike high-yield accounts that are often found online with no bricks-and-mortar branches, traditional savings accounts are usually held at banks that have physical branches.
In some cases, you can get above-average yields with more traditional accounts held at local credit unions and community banks with physical locations, but often the best savings rates are found with online-only accounts.
Traditional savings accounts might have transaction limits, deposit requirements and tiered rates based on your balance.
HYSA dependency on Fed rate
The Federal Reserve meets eight times a year to announce its benchmark federal-funds rate (sometimes called the Fed rate). This is the rate banks charge each other for short-term lending. High-yield savings accounts are highly dependent on the Fed rate.
When the target rate rises, savings yields generally rise as well. For savers, this can mean higher returns for letting their money sit at a bank or credit union. On the other hand, when the Fed cuts its benchmark rate, yields tend to fall.
Savings yields can fluctuate regularly, but they are most likely to significantly change when the Federal Reserve announces a cut or increase of its benchmark rate.
Miranda Marquit is a staff senior personal finance editor for Buy Side.
