As of March 10, 2025, high-yield savings accounts are offering interest rates as high as 4.30% APY. This development comes as the Federal Reserve has cut the federal funds rate three times in 2024, leading to a decline in deposit account rates across the board.
CIT Bank, one of the financial institutions offering the top rate, requires a $5,000 minimum opening deposit. The majority of the highest savings rates are available through online banks, which typically have lower overhead costs and can offer more competitive rates and lower fees.
While traditional savings accounts and certificates of deposit (CDs) have seen some of the highest interest rates in over a decade, the national average remains significantly lower than the rates offered by high-yield savings accounts. The average savings account rate is just 0.41%, and 1-year CDs pay 1.82%, on average, according to the FDIC.
With the Federal Reserve expected to lower its target rate again in 2025, this may be the last chance for savers to capitalize on current high rates. It is crucial to compare accounts and rates from various financial institutions to secure the best deal.