High-yield savings accounts continue to offer substantial growth potential with rates up to TK% APY that help you maximize returns on your cash reserves. These rates significantly outperform traditional savings accounts that average just 0.41% APY, making them an solid option for both short-term savings goals and building long-term financial security.

High-yield savings accounts take full advantage of compound interest, putting your deposits toward self-sustaining growth by earning interest on both your principal and previously earned interest. But what makes these high-yield accounts even more appealing is their healthy mix of competitive yields and built-in flexibility.

Unlike investment vehicles that can fluctuate with market conditions or time-locked accounts that restrict access to your money, high-yield savings accounts offer elevated returns while keeping your funds readily available. This balance makes them an ideal choice for savers who want to maximize their returns without compromising on liquidity.

Whether you're building an emergency fund, saving for a down payment, or simply want to make the most of your cash reserves, here's where to find today's best high-yield accounts with competitive rates and FDIC protection.

💰 Today's best CD rates: Choose financial simplicity with straightforward yields up to 4.50% APY

Today’s highest savings rates are at FDIC-insured digital banks and online accounts paying out rates of up to 4.75% APY with no minimums at Openbank, Jenuis Bank and other trusted providers as of Wednesday, February 19, 2025.

These brands may not sound as familiar as American Express, Capital One or Discover, though they are FDIC-insured internet-only banks or partner with an FDIC-insured bank to offer deposit accounts that are insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) — just like those at your neighborhood bank.

And while the Federal Reserve once limited transactions and withdrawals from high-yield savings accounts to six a month, that limitation is permanently suspended in the wake of the pandemic, with many banks no longer restricting how often you can move money in and out of your account.

Dig deeper: How to find and open a high-yield savings account in 5 steps

The Federal Deposit Insurance Corporation tracks monthly average interest rates paid on savings and other deposit accounts, like certificates of deposit, that offer insight into the interest you might receive at your local bank or on traditional accounts.

Here's how FDIC national deposit rates on a $10,000 minimum deposit compare between December 2024 and January 2025 on traditional low-interest deposit accounts.

Pulling back on average rate updates over the past year shows minimal movement for traditional savings accounts with bigger movement on short- and long-term CDs.

The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Dig deeper: 13 common bank fees you shouldn't be paying — and how to avoid them

A savings account is a type of deposit account designed for storing money you don’t expect to use for regular expenses, like paying bills or buying groceries. These accounts don't typically offer check-writing privileges or debit cards, though you can find limited checking with a high-yield money market account.

Saving accounts earn you interest on your balance — anywhere from a modest 1% APY with a traditional account to a lucrative 4% APY and higher for high-yield accounts — compounding what you earn and helping your savings to grow faster.

Simple interest refers to the interest you earn on your principal balance only. Let's say you invest $10,000 into an account that pays 3% in simple interest. After three years, you’d have earned $900 in interest — $300 each year — for a total of $10,900 in your account.

Now let's say you invest $10,000 in an account that pays 3% compounded annually. At the end of the first year, you'd have earned $300 in interest, for a total of $10,300 in your account. If you left your account as is for another year, you’d have earned another $309 in interest — $300 on your initial deposit and another $9 on the interest reinvested from year one — for a new total of $10,609. Year three, you’d earn another $318.27 in interest — $300 on your initial deposit and another $18.27 on the interest you earned. At the end of the same three years, you'd have earned $927.27 in interest for a total of $10,927.27 in your account — and that's without additional contributions to that initial $10,000.

Savings accounts can compound daily, monthly or quarterly, depending on the bank and account. The more frequent the compounding, the more you can earn — so read your account's disclosure statements to understand how often your interest is compounded and credited to your account. Larger balances over longer periods can add up to even more significant savings.

Dig deeper: What is compound interest? How compounding works to turn time into money

There’s no official definition for either of these accounts. Rather, each is a type of deposit account that can earn you incremental interest on your balance, helping you to grow your savings. The money you save in these accounts is federally insured up to $250,000 by the FDIC or the NCUA for up to $250,000 per person, per account, protecting your nest egg against risk.

Your earning potential is the most important difference between an HYSA and a traditional savings account. A high-yield savings account can earn you significantly more interest than a traditional savings account, with digital banks and online accounts offering the strongest rates, passing along overhead savings in the form of high yields — more than 10 times the national average when compared to a traditional account. The best of these digital banks and online accounts come with no fees and no minimum deposits — like SoFi Checking and Savings that pays up to 3.80% APY — removing any challenges to maintaining your account over the long term.

Dig deeper: High-yield savings vs. traditional savings account: Why it’s worth the switch

Digital banking opens up more competitive rates and fewer fees than your neighborhood brick-and-mortar bank, and robust apps make it easy to keep an eye on your balance, manage money among everyday accounts and deposit checks from your smartphone or tablet.

Yet while it's tempting to choose an account based only on its highest advertised APY, interest rates on savings accounts are variable — meaning rates can fluctuate after you open one and change over time. And you could be earning a lower rate if the Fed continues to cut its benchmark interest rate later this year.

Instead, look for an account that fits the way you like to bank, weighing factors that include:

Dig deeper: Can you lose money in a high-yield account? It's unlikely, but here's what to watch out for

A savings account can offer flexible access to your money, but it isn’t the only safe place to store your savings and earn interest on your balance. Look to these alternatives that offer steady returns at APYs that can outpace traditional accounts.

Dig deeper: HYSA vs. money market account: Which high-APY account is best for your cash?

Savings rates strongly correlate with the target interest rate set by the Federal Reserve, the country’s central bank. This Fed rate is the benchmark that affects interest rates set for deposit accounts, loans, mortgages, credit cards and other financial products. As the Fed rate rises, so do APYs on savings accounts, CDs and money market accounts — with today’s rates on the best high-yield savings accounts topping 4% APY.

After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate on September 18, followed by two additional quarter-point cuts after its November and December policy meetings.

At the conclusion of its first rate-setting policy meeting of the year, on January 29, 2025, the Federal Reserve announced it was leaving the federal funds target interest rate at 4.25% to 4.50%, this after cutting the Fed rate by a jumbo half point in September 2024, followed by a quarter-point cut each in November and December.

In its post-meeting statement, the Federal Reserve said it was maintaining the target range in its continuing effort to tame inflation. "The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid," the Fed said in its statement.

"In considering the extent and timing of additional adjustments," the Fed said it would "carefully assess incoming data, the evolving outlook, and the balance of risks."

Policymakers estimate just two additional cuts in 2025, down from four cuts projected after September's meeting — though the impacts of a Trump presidency leave the market uncertain as to how many times or how low an adjustment to expect, with some economists predicting the Fed will hold off on additional changes until May.

It's widely expected the Federal Reserve will hold the Fed rate at 4.25% to 4.50% after its policy meeting on March 18 and March 19, 2025. The CME FedWatch Tool, which measures market expectations for Fed fund rate changes, projects a 97.5% chance that the Fed keeps rates where they are.

Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate, with data indicating sticky inflation from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023.

Fresh jobs data released on February 7 from the Bureau of Labor Services showed unemployment falling to 4% in January, down from 4.1% in December. Employers appear to be slowing the pace of hiring, adding 143,000 jobs to payrolls — less than the 170,000 expected by economists. While the number of added roles came in significantly lower than December's strong gain of 307,000, BLS saw no discernible effect of California's wildfires or severe winter weather in January on employment.

The consumer price index released on February 12 showed a monthly increase of 0.5% in the prices average Americans pay for goods and services, up from 0.4% in December. High food, fuel and shelter costs drove the annual inflation rate to 3%, up from 2.9% in the previous month — the highest rate since June 2024. The producer price index released on February 13 reported a similar acceleration of prices producers are paid for goods and services, rising 0.4% from the previous month and 3.5% for the 12 months ending in January. Sticky inflation is likely to influence the Fed to pause cutting rates until later in the year.

“With our policy stance now significantly less restrictive than it had been and the economy remaining strong," said Federal Reserve Chair Jerome Powell in testimony before the Senate banking committee on February 11, "we do not need to be in a hurry to adjust our policy stance."

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Wednesday, March 19, 2025, at 2 p.m. ET.

Dig deeper: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances

Dig deeper: Fixed vs. variable interest rates — how they work for borrowing and saving

Learn more about how savings accounts work when narrowing down the best for your budget, lifestyle and financial goals with these common questions. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

Both are low-risk investments that offer a safe way to grow your money while earning interest without paying a fee for withdrawals. Yet which is better comes down to your deposit amount, need for access and savings goals. Learn how they differ — and what to consider — in our comparison guide to no-penalty CDs and savings accounts.

Saving up $10,000 is an impressive milestone that opens up several financial opportunities that can better position you for a more stable financial future. You can put it to work through passive income streams, contribute to growing a retirement fund or pay down high-interest debt. See our guide to the five smartest moves to make with your $10,000.

Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. An account's APY is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage, with many HYSAs compounding daily or monthly. Learn more about how you can turn time into money in our guide to compounding.

Yes. Interest you earn on your savings account is considered taxable income by the IRS. If you earn more than $10 in interest in a calendar year, your bank or financial institution will send you a Form 1099 to file with your annual tax return.

There's no best type of interest rate — rather, the difference is that fixed rates stay the same over time while variable rates can change based on market conditions. In many cases, the choice between fixed and variable rates will be a choice between products. Learn more about the difference between fixed and variable rates, and the ways they affect how you borrow and save money.

Banks charge higher interest rates on money they lend out to borrowers than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money.

Online banks and digital accounts don't require the overhead of brick-and-mortar branches, allowing them to pass along savings to you in the form of even higher APYs than you might find in your neighborhood.

Yes. Neobanks are fintech — or financial technology — companies that partner with more recognizable FDIC-insured banks to offer deposit accounts protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the neobank or fintech were to fail or go out of business. Look for terms like "member FDIC," "FDIC insured" or "NCUA insured" when comparing your options. Learn more about how to confirm your bank is FDIC-insured.

The core difference between saving and investing lies in the accessibility of your money and the risks you take with it. Saving means keeping your money in secure accounts with little to no risk of losing your principal. On the other hand, investing involves buying assets like stocks, bonds or mutual funds that can potentially earn higher returns. Learn more in our guide to saving and investing to find the best approach for your nest egg.

Editor's note: Annual percentage yields shown are as of Wednesday, February 19, 2025, at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.