You can earn up to 5% APY in a high-yield savings account on May 12, 2025

Inflation rates have been edging higher and the U.S. economic outlook is cloudy. That means the Federal Reserve is likely done with rate cuts for now—and while that’s mixed news for some parts of the economy, it suggests that average savings account APYs could remain unchanged for a while longer.

Whether you’re looking for a better return on your savings, or just want to open a new account for a new financial goal, Fortune has partnered with the financial industry consultants at Curinos to give you an accurate look at the highest savings account rates available on May 12, 2025.

The best savings account rates on May 12, 2025: Earn up to 5% APY

The best high-yield savings account on May 12, 2025 APY of 5% can be found at Varo Money. Fortune monitors the top rates offered by leading U.S. financial institutions to help readers obtain the best possible return on their savings. Here are the highest savings account rates on May 12, 2025:

FDIC average national deposit rates January 2020 to present

Choosing a high-yield savings account guarantees that you can beat the low average rates offered by most savings institutions in the U.S. The national average savings rate right now is 0.41%%. This is down from 0.47% in March 2024, months before the Fed reduced interest rates in late 2024.

High-yield savings account news in 2025

The Fed's decision to lower interest rates last year had an immediate impact on savings accounts. Average savings rates tend to follow the lead of the federal funds rate: When the Fed raises its benchmark rate, banks generally raise APYs on savings accounts to remain competitive. Conversely, when the central bank cuts rates, savings account yields decline.

Just keep in mind that while this correlation is true for average rates, individual banks decide to raise or lower their savings account APYs based on a variety of factors beyond just Fed rates. These include their own financial goals, promotions for attracting new customers, and other market conditions. Beware, banks can change your savings account APY at any time, for any reason.

Savings account rates should remain static for now. While the Fed cut rates at three meetings in a row from September to December 2024—reducing fed funds to 4.25% to 4.50%, where it remains—no further cuts are expected in the immediate future. Thanks to this outlook, banks won’t have much incentive to further reduce the best rates available on high-yield savings accounts.

Why should you choose a high-yield savings account?

To be clear, there’s no such thing as a special class of bank accounts called “high-yield savings accounts.” There’s simply a group of U.S. financial institutions that tend to offer savings account rates that are much higher than the industry average. Financial experts call them high-yield savings accounts.

For example, while the average savings rate in the U.S. is 0.41%, many high-yield savings accounts offer rates above 4%—that’s ten times the average rate.

Banks that offer conventional savings accounts with lower rates tend to have bricks-and-mortar branch networks and offer a full suite of deposit and lending products. Meanwhile, institutions that offer high-yield savings accounts are typically online banks with a very limited menu of other banking products and no access to physical branches.

People who want the highest possible returns on their savings should opt for a high-yield savings account. They often have no minimum balance requirements or monthly fees, making them an ideal choice for your emergency fund or short-term financial goals. Online banks are insured by the Federal Deposit Insurance Corp. (FDIC), providing the same protection as conventional banks.

Before choosing a savings account, consider the following factors:

• Interest rates: Look for competitive APYs to maximize your earnings.
• Low or no minimums: Many high-yield accounts have no minimum balance requirements.
• No monthly fees: Avoid accounts with monthly maintenance fees that can eat into your savings.
• Accessibility of funds: Ensure you can easily withdraw or transfer money when needed—some banks have withdrawal limits and charge fees for foreign ATMs.
• Security and insurance: Verify that the account is FDIC-insured.

No matter what type of savings account you hold, you can expect to pay taxes on any interest you earn.

Series on daily savings rates created by former Fortune editor Cassie Bottorff. This edition has been updated by Editor, Evergreen Content Glen Luke Flanagan.