Key takeaways
- The best high-yield savings account rate has decreased slightly and is now 4.30 percent APY among those monitored by Bankrate’s editorial staff.
- For savers, one bright spot amid prevailing economic uncertainty is that high-yield savings account rates remain elevated, with many outpacing the rate of inflation.
- Officials are widely expected to leave the Federal Reserve’s benchmark rate unchanged next week, which could help preserve high APYs on many savings accounts.
The next rate-setting meeting of the Federal Open Market Committee (FOMC) takes place in a week, and the consensus among market watchers is that officials will hold rates at their current 4.25-4.5 percent range. This could be good news for savers if it drives continued stability in rates on high-yield savings accounts.
The upcoming rate decision comes on the heels of a May 29 meeting at the White House between Federal Reserve Chair Jerome Powell and President Donald Trump. Both before and after the meeting, Trump urged the Fed to slash rates, while the Fed has maintained it will make monetary policy decisions based on “careful, objective, and non-political analysis.”
One way political policies could end up impacting monetary policy is if U.S. trade tariffs spur higher inflation. Amid the prevailing economic uncertainty and market volatility caused by tariffs, one bright spot for savers is that elevated inflation may keep APYs higher for longer. In turn, Americans can help prepare for unplanned expenses and market downturns by prioritizing savings, says Bankrate senior economic analyst Mark Hamrick.
The Federal Reserve could — but isn’t guaranteed to — begin reducing its benchmark short-term rate this year. In the meantime, the highest yields are still in the 4 percent range, which is well above the recent inflation rate.
— Mark Hamrick, Senior Economic Analyst | Bankrate
What are today’s best savings accounts and rates?
For weeks, Openbank — the new digital arm of Santander Bank — had been leader of the pack with a savings account that earned 4.40 percent APY. It then lowered its rate last week to 4.30 percent APY. As a result, Openbank is now tied with several other banks that also earn that same best rate.
The highest savings account rates can often be found at online-only banks and credit unions. Among the financial institutions listed below that offer the highest rates, it’s not difficult to find APYs of 4 percent or higher. On the other hand, sticking with a savings account that earns just a lackluster APY could be likened to leaving free money on the table in the form of higher interest.
Note: Annual percentage yields (APYs) are as of June 6, 2025. APYs for some products may vary by region.
The latest news from the Federal Reserve
Beginning June 7, a customary blackout period prohibits FOMC meeting participants from speaking publicly leading up to next week’s rate-setting meeting, June 17-18. Prior to the blackout, however, various Fed officials made public appearances to talk about monetary policy. At one such event, Chicago Fed President Austan Goolsbee spoke on June 3 in Cedar Rapids, Iowa at the Corridor Business Journal’s 2025 Mid-Year Economic Review.
At the event, Goolsbee was asked what businesses should expect regarding interest rate policy this year. He responded by saying it depended on what would happen in the next three months regarding data on prices and employment, adding that prior to the president’s April 2 tariff announcement, employment was stable and Personal Consumption Expenditures (PCE) inflation had been coming down to the Fed’s 2 percent target.
The 12 months of PCE inflation (in April 2025) were around 2.1 percent, so very close to the target. But that’s old news that’s over the last year — and so these were the last reports coming in before the tariffs. So now they’re just question marks. Are the tariffs going to have a small impact? Or are the tariffs going to have a large impact? And now we’ve got to wait and see what happens.
— Austan Goolsbee, President and CEO | The Federal Reserve Bank of Chicago
As of now, it’s uncertain how much of an impact tariffs may have on inflation. Market watchers widely expect officials to hold rates steady at next week’s FOMC meeting.
Why should you choose a high-yield savings account?
Thanks to a federal funds rate that’s remained unchanged since December 2024, rates on many savings accounts continue to outpace inflation. It’s not hard to find a top savings account that earns an annual percentage yield (APY) of around 4 percent, which is more than six times greater than the national average of 0.60 percent APY.
“Utilizing high-yield savings is a bit like being dedicated to physical fitness,” says Bankrate’s Hamrick. “You don’t need to set a world record, but participating and being mindful are key. Don’t worry about failing to nab the one with the highest yield, but you want to be in the neighborhood. Getting close to the target, which these days is around 4 percent APY, is fine.”
Bankrate’s tips on what to look for in a high-yield savings account
- A high APY: The higher the APY, the faster your money will grow.
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Fees and account requirements
- No monthly maintenance fees: Even low monthly maintenance fees can cut into your savings over time. Accounts that come without fees — effectively free — will help maximize the cash you contribute to your savings account.
- Low or no minimum deposit: This only really matters when first opening an account, but if you don’t have a lot of money on hand at the start, you’ll want to search for an account that has a low (around $100 or so) or no minimum deposit requirement.
- Federal insurance protection: Ensure your chosen bank is FDIC-insured (or NCUA-insured at a credit union), protecting your deposits up to $250,000 per depositor, per financial institution, per ownership category. This federal backing means your money is safe even if the bank fails.
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Access and convenience: Consider the way you bank and how often you’ll need to access your money:
- Mobile app quality and online banking features
- ATM access: Some online banks reimburse ATM fees
- Transfer speed: How quickly can you move money to your checking account?
- Customer service availability and quality
Bottom line
Despite economic uncertainty and concern over how tariffs will impact inflation, many high-yield savings accounts continue to earn strong APYs of 4 percent or greater. The Fed has held rates steady in 2025 notwithstanding political pressure to cut them. At the FOMC meeting next week, officials are widely expected to leave rates unchanged, which could help preserve elevated APYs on savings accounts and certificates of deposit that are surpassing inflation.
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