Interest rates on high-yield savings accounts (HYSAs) have been holding steady. But with the Federal Reserve already cutting rates three times since late 2024 and signaling more cuts ahead, the window to earn a top-tier return on your cash might be closing.

The good news is that many HYSAs are still offering APYs above 4.00%, with a few standout banks offering closer to 4.50% and even 5.00%. Whether you're building an emergency fund or parking extra cash for a short-term goal, locking in a strong yield today could help you stay ahead of inflation and market uncertainty.

We track savings rates daily from dozens of banks and credit unions to bring you the best options. Here are the top offers as of April 29th.

Why we chose these high-yield savings accounts

• Attractive returns. Enjoy some of the top APYs available to boost your savings quickly.
• Easy start. Some accounts require little or no deposit to open and begin earning interest.
• Digital convenience. Open and manage these accounts fully online from your phone or computer.
• Nationwide access. No need to join a credit union or meet membership requirements.

If you're not earning more than 4.00% APY on your savings, it might be time to switch. Rates have been mostly flat since the end of 2024, but several online banks are leading the pack without requiring huge balances. We like Barclays Tiered Savings account because it pays 4.10% with no account minimums. Pro tip: Be careful with teaser rates that drop after a few months. Always check the fine print. Click here to open a Barclays Tiered Savings account today.

Should you open a high-yield savings account now?

Have extra cash earning next to nothing? It's time to switch things up. High-yield savings accounts are currently offering great rates to help grow your money.

Think about opening one if you:

• Want low fees and easy online access
• Need flexibility and freedom from strict terms
• Seek higher returns without locking in your funds
• Value the security of FDIC insurance

HYSAs boost returns while keeping your cash handy. They're ideal for those unexpected home and vehicle repairs, vacation savings, or as a safety net in the event of a job loss. Click here to compare the best high-yield savings accounts and open one today.

How to open a high-yield savings account

Getting started with a high-yield savings account is easy and usually takes just a few minutes. Follow these simple steps:

1. Compare accounts. Look for the best APY, but also consider fees, ease of access, and minimum balance rules.
2. Apply online. Most accounts can be opened from your phone or computer -- no paperwork required.
3. Fund your account. Link an existing checking or savings account and transfer your money.
4. Set up recurring deposits (optional). Some accounts offer higher APYs when you make regular monthly contributions.
5. Track your balance and earnings. Interest usually compounds daily and is paid monthly, helping your savings grow faster over time.

Want an account without a monthly deposit requirement?

Some high-yield savings accounts give you great rates without any catches. You don't need to make regular deposits, keep a minimum balance, or worry about monthly fees. If you want something easy, check out the Discover® Online Savings account. It offers a 3.60% APY, and you don't need a minimum deposit to open the account.

• Sources

  • https://www.varomoney.com/high-yield-savings-account/
  • https://www.axosbank.com/personal/bank/axos-one
  • https://www.pibank.com/pibank-savings/
  • https://www.peak.bank/peak-bank/savings
  • https://www.presidential.com/personal/banking/savings

FAQs

• Should I open a savings account right now?

  Yes. Now is a great time to open a high-yield savings account and take advantage of competitive rates up to 5.00% APY. HYSAs not only help your money grow faster compared to low-yield, but also offer flexibility and access to your cash when you need it. Plus, managing your account is simple from mobile and online apps.

• Can savings account rates go even higher in 2025?

  It's possible savings account rates could increase in 2025. Rate hikes depend on the Federal Reserve's actions and economic shifts. If inflation rises, banks may boost rates to attract deposits. However, at this time, experts expect that rates will decrease before the end of the year.

• What's the biggest downside of a high-yield savings account?

  The biggest downside of a high-yield savings account is that interest rates can fluctuate. Unlike the fixed rates of CDs, the interest rate on savings accounts can change based on market conditions, potentially reducing your earnings over time. This variability means your returns might not be as predictable as with other fixed-rate investments.