Earn up to 5.00% APY on the best high-yield savings account on February 20, 2025

High-yield savings accounts are still must-have for savvy savers, as they offer annual percentage yields (APYs) that far surpass the average. Right now, a few of the best savings accounts offer rates above 4%, with a handful still at the coveted 5% mark.

Recent economic indicators point to hotter inflation and an uncertain U.S. economic outlook. As a result, the Federal Reserve is likely done with rate cuts for the time being. While this isn’t the best news for some parts of the economy, it suggests that savings account APYs could remain where they are for the foreseeable future.

To help savers maximize their returns, Fortune has joined forces with the banking industry experts at Curinos to bring you a comprehensive overview of the highest savings account rates currently available nationwide.

The best high-yield savings accounts on February 20, 2025: Earn up to 5.00% APY

Varo Money currently leads the pack with an impressive 5.00% APY interest rate on its high-yield savings account, setting the bar for the industry. Fortune continuously monitors the top rates offered by leading U.S. financial institutions. Check out the top savings account rates on February 20, 2025:

FDIC average national deposit rates: January 2020 to present

Right now, the national average savings rate hovers at 0.41%%, marking a noticeable decrease from the 0.47% rate recorded in March 2024. This downward trend correlated closely with the Federal Reserve's rate reductions toward the end of 2024.

Savings account news in 2025

The Federal Reserve's interest rate decisions have a major impact on savings accounts. When the Fed increases its benchmark rate, banks typically respond by raising the interest offered on savings accounts to maintain competitiveness. Conversely, when the Fed lowers rates, savings account yields tend to decrease.

However, this relationship isn't always so straightforward. While changes frequently follow in the wake of Fed meetings, which are held approximately eight times per year, some banks adjust rates more often depending on their competitive positioning or in response to unexpected market developments.

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It's anticipated that savings account rates will remain stable in the coming months. The Fed last cut rates in December 2024, but inflation has begun creeping up again. The next FOMC meeting will be held on March 18-19, 2025.

Here’s what you get with a high-yield savings account

High-yield savings accounts typically provide rates that are 10 to 20 times higher than their traditional counterparts. For instance, while the national average savings rate stands at 0.41%, many high-yield accounts offer rates exceeding 4%.

Traditional accounts often provide physical branch access but with lower rates, while high-yield accounts are typically offered by online banks and feature higher rates but limited in-person services.

Consider opening a high-yield savings account for these benefits:

• Significantly higher interest rates compared to traditional savings accounts
• Often free from minimum balance requirements or monthly fees
• Ideal for emergency funds or short-term savings goals
• FDIC-insured, providing the same protection as traditional banks

When looking for a new savings account, interest rates aren’t the only factor to consider. Make sure you also avoid accounts with monthly maintenance fees, and look into how hard it will be to access your funds. You want to ensure you can easily make withdrawals or transfers when necessary—preferably without any pesky foreign ATM fees.