If you are anticipating a tax refund or have recently put aside money for tax day, you may soon have extra cash that could be better utilized than just sitting in a standard savings account. By transferring these funds to one of today’s leading high-yield savings accounts offering up to a 4.40% Annual Percentage Yield (APY), you could potentially earn over ten times the national savings average of 0.41% with minimal additional effort.
These high-yield accounts function similarly to regular savings accounts but provide significantly higher returns without the typical fees and minimum requirements found at traditional banks. The key difference lies in online banks, which forgo costly branch networks and pass on the resulting savings to customers in the form of competitive interest rates. This allows your money to grow faster through the power of compound interest.
Rest assured, your funds remain secure with the same FDIC protection of up to $250,000 as major banks such as Chase and Bank of America. Furthermore, high-yield savings accounts easily link to your existing checking account for convenient access to your money.
Whether you are working on bolstering your emergency fund or saving for upcoming travel plans, you can find the current highest-yielding FDIC-insured accounts with little to no minimum requirements and convenient online enrollment.
Top high-yield savings rates as of Tuesday, April 15, 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: Beginning 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 and a cash bonus of up to $300 with direct deposit
– Discover Online Savings: 3.70% APY with no minimum balance
While these brands may not be as recognizable as others, they are FDIC-insured online banks or partners with such banks to offer insured deposit accounts, ensuring protection of your funds up to $250,000 by the FDIC or NCUA.
Additionally, the Federal Reserve has permanently lifted the previous limitation on transactions and withdrawals from high-yield savings accounts following the pandemic, allowing more flexibility in managing your account.
For further guidance on finding and opening a high-yield savings account in five simple steps, delve deeper into the process.
Here is the rewritten text:
3-month CD
1.43% – 1.45%
Decreased by 2 basis points
6-month CD
1.61% – 1.63%
Decreased by 2 basis points
12-month (1 year) CD
1.78% – 1.80%
Decreased by 2 basis points
24-month (2 year) CD
1.49% – 1.45%
Increased by 4 basis points
36-month (3 year) CD
1.35% – 1.31%
Increased by 4 basis points
48-month (4 year) CD
1.27% – 1.23%
Increased by 4 basis points
60-month (5 year) CD
1.34% – 1.31%
Increased by 3 basis points
Over the past year, there has been minimal movement in average rates for traditional savings accounts, with more significant changes seen in short- and long-term CDs. The FDIC is an independent government agency responsible for ensuring stability and public confidence in the U.S. financial system by providing insurance on consumer deposit accounts.
For more information, explore the article “13 Common Bank Fees You Shouldn’t Be Paying — And How to Avoid Them.”
Compared to traditional savings accounts, digital banks and online accounts offer significantly higher interest rates, surpassing the national average by more than 10 times. The top digital banks and online accounts, such as SoFi Checking and Savings, provide rates up to 3.80% APY without any fees or minimum deposits, making it easier to maintain your account in the long run.
Exploring further, high-yield savings accounts outshine traditional options due to competitive rates and fewer fees offered by digital banking platforms. These accounts also feature user-friendly apps for easy balance monitoring, money management across accounts, and mobile check depositing.
While it may be tempting to choose an account solely based on its advertised APY, it’s crucial to consider that interest rates on savings accounts are subject to change. To make a well-informed decision, look for an account that aligns with your banking preferences, taking into account factors such as promotional rates, minimum deposit requirements, accessibility options, and federal insurance protection.
In addition to high-yield savings accounts, there are other ways to save and grow your money, including Certificate of Deposits (CDs) which offer fixed rates but may incur penalties for early withdrawals, Money Market Accounts (MMAs) with competitive rates and limited withdrawal privileges, and High-Yield Checking Accounts that blend high APYs with checking benefits.
By exploring these alternatives and staying informed about savings rates and high-interest accounts in the market, you can make informed decisions to maximize your savings potential and financial growth.
The Federal Reserve, the country’s central bank, sets the benchmark Fed rate that impacts interest rates for deposit accounts, loans, mortgages, credit cards, and other financial products. When the Fed rate increases, so do the APYs on savings accounts, CDs, and money market accounts, with some high-yield savings accounts currently offering over 4% APY.
After raising the target interest rate 11 times between March 2022 and July 2023 to address the highest inflation in four decades following the pandemic, the Federal Reserve made a highly anticipated half-point cut to its federal funds target interest rate on September 18. This was followed by two additional quarter-point cuts after its November and December policy meetings.
On March 19, 2025, the Fed paused rate cuts for the second time, maintaining the federal funds target interest rate at a range of 4.25% to 4.50%. This marks the second time the Fed has halted a rate change since its consecutive cuts in September, November, and December, which collectively lowered the Fed rate by a full percentage point to help stabilize inflation around 2%.
The Federal Reserve stated in its post-meeting announcement that it was keeping the target range steady to work towards “maximum employment” and to control inflation at 2%. The Fed noted stable unemployment rates and solid labor market conditions but acknowledged increased uncertainty in the economic outlook. It intends to carefully assess incoming data and risks before making further adjustments.
The Fed updated its economic projections, indicating plans for two quarter-point cuts in 2025 due to expectations of slower growth and higher inflation ahead. The next policy meeting is scheduled for May 6–7, 2025, with current market expectations suggesting an over 80% probability that rates will remain unchanged at 4.25% to 4.50%.
Economists are closely monitoring inflation and labor reports while speculating about the timing of future Fed rate cuts. Recent data shows a decline in inflation from its peak in June 2022 to levels ranging between 2.5% and 4% since May 2023. Notably, fresh jobs data released in April revealed strong job growth exceeding projections, although unemployment saw a slight increase.
Inflation eased to 2.4% in March, lower than forecast and down from 2.8% in February. Overall prices decreased by 0.1% for the month, driven by lower energy costs and reduced travel expenses. Despite these positive indicators, concerns linger about the impact of President Trump’s new tariffs and their potential effect on the economy.
The producer price index report released on April 11 further confirmed the ongoing trend of decreasing wholesale prices, with a 0.4% drop in March, marking the largest monthly decline since October 2023. Gasoline prices notably plummeted by 11.1%. The annual increase in the PPI slowed to 2.7%, indicating a moderation in inflation. While economists welcomed this relief from inflation, many are cautious about the potential impact of President Trump’s trade policies and the 90-day pause on “reciprocal” tariffs, which could lead to accelerated price growth.
Federal Reserve Chair Jerome Powell, speaking at a conference in Arlington, Virginia on April 4, acknowledged the uncertainties surrounding tariff increases, stating that they are expected to be greater than initially anticipated. Powell emphasized the need for greater clarity before making decisions on monetary policy adjustments, indicating that it is premature to determine the appropriate path forward.
The Federal Reserve’s rate-setting panel, led by Powell, will announce its rate decision at the conclusion of its meeting on Wednesday, May 7, 2025, at 2 p.m. ET.
For more information on the next Federal Reserve meeting and its potential impact on your finances, familiarize yourself with key terms such as annual percentage yield (APY), Member FDIC, maintenance/service fees, minimum deposit requirements, and variable APY. Understanding these terms can help you make informed decisions about your financial goals and savings strategies.
Deciding between no-penalty CDs and savings accounts for withdrawals ultimately depends on your deposit amount, need for access, and savings goals. Our comparison guide highlights the differences between the two options to help you make an informed choice.
With $10,000 saved, you have the opportunity to make impactful financial decisions that can enhance your future stability. Whether you choose to generate passive income, contribute to a retirement fund, or reduce high-interest debt, our guide outlines the five smartest moves you can make with your $10,000.
Compound interest is a powerful concept where you earn interest on both your initial deposit and any accumulated interest. Understanding how compound interest works can help you maximize your savings over time. Our guide to compounding explains this concept further and shows how time can translate into financial growth.
It’s important to note that interest earned on a savings account is taxable income. If you earn more than $10 in interest in a year, your financial institution will provide you with a Form 1099 for tax filing purposes.
When comparing fixed rates and variable rates, remember that fixed rates remain constant, while variable rates fluctuate based on market conditions. Explore the differences between these two types of rates and how they impact your financial decisions in our detailed guide.
Banks earn money on savings accounts by charging higher interest rates on loans than what they pay out on deposits. This difference, known as a spread, is how banks generate profits. Online banks can offer competitive rates by operating with lower overhead costs compared to traditional brick-and-mortar branches.
Digital accounts offered by neobanks are secure, as they are typically backed by FDIC-insured institutions. Your deposits are protected up to $250,000 by the FDIC, ensuring the safety of your funds even in the event of the neobank’s failure.
Saving and investing serve different financial purposes, with saving focusing on security and accessibility, while investing involves taking on risks for potential higher returns. Our guide to saving and investing can help you determine the best strategy for your financial goals.
Please note that the information provided is accurate as of Tuesday, April 15, 2025, at 7 a.m. ET. Interest rates and promotional offers may vary by region and are subject to change.
Here are the rewritten texts with a more concise format:
1. FDIC National Rates and Rate Caps. Retrieved March 18, 2025.
2. U.S. Bureau of Labor and Statistics Consumer Price Index Summary. Retrieved April 11, 2025.
3. U.S. Bureau of Labor and Statistics Producer Price Index News Release summary. Retrieved April 14, 2025.
4. U.S. Bureau of Labor and Statistics Employment Situation Summary. Retrieved April 7, 2025.
5. CME Group CME FedWatch Tool. Retrieved April 15, 2025.
