Inflation has eased to a six-month low of 2.4%, making this weekend an opportune time to amplify your savings by switching to a high-yield account. Leading accounts currently offer impressive returns of up to 4.40% APY — double the inflation rate — while still providing convenient access to your funds like traditional savings accounts.
High-yield savings accounts stand out amidst market uncertainties, offering attractive returns and the flexibility to access your money whenever you need it. These accounts are primarily offered by online banks, which operate without costly branches and pass on the savings to you through higher interest rates and minimal fees. They typically have no minimum balance requirements or monthly maintenance fees, making them a hassle-free option for building an emergency fund or saving for upcoming plans.
While Federal Reserve decisions influence these rates, daily market fluctuations have little impact on them. To secure the best interest rates available right now, consider FDIC-insured digital banks and online accounts such as Bread Financial, Valley Bank, SoFi, and others.
Here are the top savings rates as of Friday, April 11, 2025:
– Bread Financial High-Yield Saving: 4.40% APY with a $100 minimum deposit
– Valley Bank Direct Savings: 4.30% APY with a $1,000 minimum for new customers
– Barclays Bank Tiered Savings: Starting at 4.15% APY with no minimum balance
– CIT Bank Platinum Savings: 4.10% APY on balances of $5,000+
– Upgrade Premier Savings: 4.02% APY on balances of $1,000+
– SoFi Checking and Savings: Up to 3.80% APY with a cash bonus of up to $300 with direct deposit
– Discover Online Savings: 3.70% APY with no minimum balance
These banks may not be as recognizable as others but are FDIC-insured and offer competitive rates. Additionally, the Federal Reserve’s transaction limits on high-yield savings accounts have been permanently suspended post-pandemic, allowing for more flexibility in managing your money.
For guidance on opening a high-yield savings account in five simple steps and comparisons to traditional savings account rates, refer to the Federal Deposit Insurance Corporation’s data on national deposit rates.
March 17, 2025 National Deposit Rates compared to February 18, 2025:
– Savings: 0.41% (No change)
– Interest Checking: 0.07% (No change)
– Money Market: 0.64% (Down 1 basis point)
– 1-month CD: 0.22% (Up 3 basis points)
– 3-month CD: 1.45% (Down 2 basis points)
– 6-month CD: 1.63% (Down 2 basis points)
– 12-month CD: 1.80% (Down 2 basis points)
– 24-month CD: 1.45% (Up 4 basis points)
– 36-month CD: 1.31% (Up 4 basis points)
– 48-month CD: 1.23% (Up 4 basis points)
– 60-month CD: 1.31% (Up 3 basis points)
The past year has shown minimal movement in traditional savings accounts, while short- and long-term CDs have experienced more significant changes.
The FDIC is an independent government agency responsible for ensuring stability and public trust in the U.S. financial system by providing insurance on consumer deposit accounts.
For more information, explore common bank fees to avoid and learn about savings accounts, designed for storing money not immediately needed for expenses. These accounts can earn you interest, compounding your savings over time.
Dive deeper into the differences between simple and compound interest, and understand how high-yield savings accounts vary from traditional savings accounts. Both types of accounts can help you grow your savings, with the FDIC or NCUA insuring balances up to $250,000.
Earn more interest with a high-yield savings account compared to a traditional savings account. Digital banks and online accounts offer the best rates, with no fees or minimum deposits. Consider factors like promotional rates, minimums, ease of access, and federal insurance protection. Explore other options like certificates of deposit and money market accounts for higher returns.
Discover the best high-APY account for your savings: HYSA vs. Money Market Account
Savings rates are closely tied to the Federal Reserve’s target interest rate, which impacts various financial products such as deposit accounts, loans, and credit cards. When the Fed rate increases, so do the Annual Percentage Yields (APYs) on savings accounts, CDs, and money market accounts. Today, top high-yield savings accounts offer APYs exceeding 4%.
After raising the target interest rate multiple times in response to high inflation post-pandemic, the Federal Reserve announced rate cuts in September, November, and December. In March 2025, the Fed decided to maintain the federal funds target interest rate between 4.25% and 4.50%. This pause marked the second time after the consecutive rate cuts in the previous months, aimed at stabilizing inflation at 2%.
The Fed emphasized the importance of achieving maximum employment and managing inflation levels in its post-meeting statement. Economic projections suggest two quarter-point cuts in 2025 to address future growth challenges and inflation concerns.
As the Fed’s next policy meeting approaches in May 2025, market expectations indicate a high likelihood of the Fed maintaining the current interest rate range. Analysts are monitoring inflation and labor reports while speculating on potential future rate adjustments, especially as recent data shows a decrease in inflation rates and positive job market growth.
Stay informed about economic developments and be prepared for potential changes in the Fed’s policies by following updates on the upcoming May meeting.
The inflation rate has been recast and is now lower than the 2.8% reported in February. Prices fell by 0.1% for the month, marking the first monthly decline since May 2020. This drop was primarily driven by lower energy costs, such as a 6.3% decrease in gasoline prices and reduced travel expenses. Economists welcomed this temporary break in inflation, but many caution that President Trump’s trade developments and the 90-day pause on “reciprocal” tariffs may lead to faster price growth. A new producer price index is scheduled for release on April 11.
During a conference in Arlington, Virginia, on April 4, Federal Reserve Chair Jerome Powell acknowledged the turbulent week and stated, “While uncertainty remains high, it is evident that the tariff increases will be significantly larger than anticipated.” Powell also mentioned a hold on Fed cuts for now, citing the need for “greater clarity”: “It is premature to determine the appropriate monetary policy path.” The rate-setting panel led by Powell will announce a rate decision at the conclusion of its meeting on Wednesday, May 7, 2025, at 2 p.m. ET.
For more information on the upcoming Federal Reserve meeting and its impact on your finances, explore key terms such as Annual Percentage Yield (APY), Member FDIC, maintenance or service fee, minimum deposit, and Variable APY. Understanding these terms can help you navigate savings accounts effectively and make informed financial decisions.
When deciding where to put your $10,000 in savings, you’ll need to consider factors such as deposit amount, access needs, and savings goals. To help you make an informed choice between no-penalty CDs and savings accounts, check out our comparison guide.
Having saved $10,000 is a significant achievement that presents various financial opportunities to improve your financial stability. You can explore options like generating passive income, contributing to a retirement fund, or paying off high-interest debt. Find out the five smartest moves you can make with your $10,000 in our guide.
Compound interest is the concept of earning interest on both your initial deposit and any interest accumulated over time. It’s a powerful tool to increase your savings, with the Annual Percentage Yield (APY) indicating the total interest earned on your deposit over a year, including compound interest. Learn more about the magic of compounding in our guide.
Interest earned on your savings account is considered taxable income by the IRS. If you earn more than $10 in interest within a year, your bank will provide a Form 1099 for tax filing.
Fixed rates remain constant, whereas variable rates fluctuate based on market conditions. The choice between fixed and variable rates often depends on the product you’re considering. Discover how these rates impact your financial decisions in our guide.
Banks make money by charging higher interest rates on loans than what they pay on customer deposits. Online banks and digital accounts offer competitive rates due to lower overhead costs without physical branches.
Your money is safe with online-only neobanks, as they offer FDIC-insured deposit accounts up to $250,000. Look for “member FDIC” or similar terms to ensure your funds are protected.
Saving involves keeping money in secure accounts with minimal risk, while investing entails purchasing assets like stocks or bonds for potentially higher returns. Learn more about saving and investing strategies in our comprehensive guide.
Please note that the Annual Percentage Yields mentioned were accurate as of April 11, 2025, and are subject to change. Promotional rates and APYs may vary by region.
Here is the revised text:
– Summary of Consumer Price Index from the U.S. Bureau of Labor Statistics. Accessed on April 11, 2025.
– Summary of Producer Price Index News Release from the U.S. Bureau of Labor Statistics. Accessed on March 14, 2025.
– Summary of Employment Situation from the U.S. Bureau of Labor Statistics. Accessed on April 7, 2025.
– Information on National Rates and Rate Caps from FDIC. Accessed on March 18, 2025.
– Utilization of the CME FedWatch Tool from CME Group. Accessed on April 11, 2025.
