Discover the best high-yield savings accounts offering up to 4.50% APY for a great opportunity to grow your savings without risks or gimmicks. With the Federal Reserve set to maintain interest rates this week, now is a prime time to secure higher returns before potential cuts later in the year. These accounts provide similar protections to traditional banks but offer significantly higher interest rates with fewer fees, restrictions, and earning limits. Online banks and digital accounts, in particular, are leading the way in providing strong returns by operating without costly branch networks, passing on the savings directly to you. Rest assured, your deposits and interest are safeguarded by FDIC insurance up to $250,000 and benefit from compounding interest for faster growth. Whether you’re aiming to bolster your emergency fund, save for a home down payment, or optimize your cash reserves, these high-yield accounts are the way to go. Secure easy online signup in just minutes for today’s top-yielding accounts, including CDs offering returns up to 4.75% APY before the Fed’s decision. Explore the latest high-yield savings rates from trusted providers like Lending Club, Bread Financial, CIT Bank, and more. Take advantage of attractive rates such as 4.40% APY with Bread Financial Saving HYSA or 4.30% APY with CIT Bank Platinum Savings. Discover competitive rates with no or low minimums for new customers to maximize your savings potential. These lesser-known brands may not have the same recognition as larger institutions but offer FDIC-insured accounts for your peace of mind. Additionally, recent changes have lifted transaction limits on high-yield savings accounts, allowing more flexibility in managing your money. Learn how to open a high-yield savings account in five simple steps and start earning up to 3.80% APY today with no monthly fees. Compare traditional savings account rates and consider the earning potential on your deposits. Stay informed on the latest interest rate trends and make the most of your savings with these high-yield options.
Interest checking accounts stayed at 0.07%, while money market accounts remained at 0.64%. Rates for certificates of deposit (CDs) saw slight decreases across various terms. For instance, the 1-month CD dropped 1 basis point to 0.22%, the 3-month CD decreased by 2 basis points to 1.45%, and the 6-month CD went down 1 basis point to 1.63%. The 12-month CD saw a decline of 2 basis points to 1.80%, the 24-month CD remained unchanged at 1.45%, and the 36-month CD decreased by 1 basis point to 1.31%. Meanwhile, the 48-month CD and the 60-month CD both decreased by 1 basis point to 1.23% and 1.31%, respectively.
Over the past year, there has been minimal movement in average rate updates for traditional savings accounts, with more significant changes observed in short- and long-term CDs. The Federal Deposit Insurance Corporation (FDIC) is an independent government agency responsible for maintaining stability and public confidence in the U.S. financial system, as well as providing insurance on consumer deposit accounts.
For more information, you can explore the common bank fees you should avoid and learn how to manage them effectively. If you’re wondering about savings accounts, they are designed to hold money that you do not plan to use for regular expenses, such as bills or groceries. Savings accounts typically do not offer check-writing privileges or debit cards, although some high-yield money market accounts may provide limited checking features.
Savings accounts allow you to earn interest on your balance, with rates ranging from around 1% for traditional accounts to over 4% for high-yield accounts. This interest compounds over time, helping your savings to grow faster. Compound interest involves earning interest not only on your initial deposit but also on any interest that has previously been credited to your account. The frequency of compounding can vary, with daily, monthly, or quarterly compounding being common practices at different financial institutions.
When comparing high-yield savings accounts to traditional savings accounts, the key distinction lies in the potential earnings. Both types of accounts are federally insured up to $250,000, safeguarding your savings against risk.
A high-yield savings account can earn you significantly more interest compared to a traditional savings account. Digital banks and online accounts offer the best rates, with yields more than 10 times the national average. The top digital banks and online accounts, such as SoFi Checking and Savings, come with no fees and no minimum deposits, making it easy to maintain your account in the long term.
When comparing high-yield savings to traditional savings accounts, consider factors such as promotional rates, minimum deposit requirements, ease of accessing your money, and FDIC or NCUA protections. While promotional rates may initially offer high APYs, they can change based on market conditions. Look for accounts that suit your banking preferences and offer flexibility in accessing your funds.
In addition to savings accounts, consider other options to save and grow your money, such as certificates of deposit (CDs), money market accounts (MMAs), and high-yield checking accounts. CDs guarantee fixed returns but may have withdrawal penalties, while MMAs offer competitive rates with access to your funds. High-yield checking accounts combine high APYs with checking benefits and unlimited debit privileges.
When deciding where to store your savings, explore these alternatives to traditional savings accounts to find the best option for your financial goals.
Savings rates in the news are closely linked to the target interest rate established by the Federal Reserve, the central bank of the United States. This Fed rate serves as the basis for determining interest rates on various financial products such as deposit accounts, loans, mortgages, and credit cards. When the Fed rate goes up, so do the APYs (Annual Percentage Yields) on savings accounts, CDs, and money market accounts. Currently, the top high-yield savings accounts are offering APYs exceeding 4%.
In response to soaring inflation rates, the Federal Reserve raised the target interest rate 11 times between March 2022 and July 2023. However, in a move that garnered much attention, the Fed announced a significant half-point reduction to its federal funds target interest rate on September 18, followed by two consecutive quarter-point cuts in November and December of the same year.
Fast forward to January 29, 2025, the Fed chose to maintain the federal funds target interest rate within a range of 4.25% to 4.50%, marking a pause in rate adjustments following three consecutive cuts in the previous months. The Federal Reserve’s decision was driven by its commitment to curbing inflation and its monitoring of economic indicators such as unemployment and labor market conditions.
Looking ahead to the Fed’s upcoming policy meeting on March 18-19, 2025, it is widely anticipated that the central bank will maintain interest rates at their current levels. Market expectations, as reflected in the CME FedWatch Tool, suggest a high likelihood of no changes to the Fed rate. Economists are closely monitoring inflation trends and labor market data for insights into potential future adjustments to the interest rate.
Recent data on unemployment and consumer prices have shown fluctuations, with unemployment rising slightly and inflation rates moderating. The economy faces challenges such as trade tensions, immigration policies, and workforce reductions, contributing to uncertainties in consumer confidence and overall economic conditions.
The most recent data on the economy revealed a 0.2% monthly increase in prices paid by average Americans for goods and services, compared to a 0.5% increase in January. Additionally, the producer price index published on March 13 indicated a slowdown in wholesale inflation, with prices paid to producers for goods and services dropping by 0.1% from the previous month and 3.2% over the 12 months ending in February.
Federal Reserve Chair Jerome Powell commented on the state of the U.S. economy at a policy forum on March 7, stating that despite uncertainties, the economy remains stable. He emphasized that there is no rush to make decisions and that the Fed is prepared to wait for more clarity on potential policy changes by the Trump administration.
The Federal Reserve’s rate-setting panel, led by Powell, will make an announcement regarding interest rates at the end of their meeting on Wednesday, March 19, 2025.
For more information on the Federal Reserve meeting schedule and its impact on personal finances, you can explore key terms such as annual percentage yield (APY), FDIC membership, maintenance fees, minimum deposits, and variable APY. Understanding these terms will help you make informed decisions about your savings and investments.
In our comparison guide to no-penalty CDs and savings accounts, you’ll find advice on where to put $10,000 you’ve saved up. This significant amount opens up various financial possibilities that can improve your financial security. You can explore passive income streams, grow a retirement fund, or pay off high-interest debt. Check out our guide on the five smartest moves to make with your $10,000.
Compound interest is like earning interest on your interest, making it a powerful tool to increase your savings over time. By earning interest on your initial deposit and any accrued interest, you can maximize your earnings. The APY of an account represents the total interest you’ll earn over a year, including compound interest, typically compounded daily or monthly. Learn more about compounding and how time can turn into money in our guide.
It’s important to note that interest earned on a savings account is taxable income according to the IRS. If you earn more than $10 in interest in a year, your bank will provide you with a Form 1099 for tax purposes.
Fixed and variable interest rates serve different purposes, with fixed rates remaining constant while variable rates fluctuate based on market conditions. Understanding how these rates impact your financial decisions can help you choose the right products. Learn more about fixed vs. variable rates and how they influence your financial choices.
Banks make money on savings accounts by charging higher interest to borrowers than what they pay on customer deposits, known as the spread. Online banks can offer higher APYs due to lower overhead costs compared to traditional brick-and-mortar branches.
Your money is safe with online neobanks and digital accounts, as they are typically partnered with FDIC-insured banks. This protection covers up to $250,000 even if the neobank were to face financial troubles. Look for “member FDIC,” “FDIC insured,” or “NCUA insured” when considering banking options.
Saving involves keeping your money in secure accounts, whereas investing entails purchasing assets like stocks, bonds, or mutual funds for potentially higher returns. Learn more about saving and investing to determine the best strategy for building your nest egg.
Please note that the APYs mentioned are accurate as of Monday, March 17, 2025, at 8:10 a.m. ET and may vary by region. Promotional rates and terms are subject to change.
Here are the revised citations:
– U.S. Bureau of Labor Statistics. “Employment Situation Summary.” Accessed March 14, 2025.
– Federal Deposit Insurance Corporation (FDIC). “National Rates and Rate Caps.” Accessed February 19, 2025.
– CME Group. “CME FedWatch Tool.” Accessed March 17, 2025.
