Savings interest rates today: Watch your money blossom with spring’s highest APYs of up to 4.40%

Spring has officially arrived, bringing with it not only budding renewal but also a chance to spring clean your finances with the freshest returns of up to 4.40% on high-yield savings accounts right now. These supercharged accounts are positioned to grow your money at more than 10 times the national average of traditional accounts, offer a way to more quickly boost your emergency fund or reach your financial goals.

You’ll find today’s most competitive rates on digital accounts at FDIC-insured online banks that work just like those at your neighborhood bank but without costly brick-and-mortar networks, passing along the savings in the form of substantially higher returns on your deposits — without many of the pesky fees and minimum requirements that can limit what you earn.

Even as rates are likely to come down over the next year, these high-yield accounts are expected to consistently outperform conventional deposit options at major banks. And robust apps and online banking allow you to easily link your new account to an existing checking account, no matter where you typically bank, to easily manage and monitor your money.

Here’s where to plant the seeds of wealth today at the highest rates so far this spring with online signup in minutes.

💰 Today’s best CDs: Revitalize your savings this spring with guaranteed yields of up to 4.50%

High-yield savings rates for March 24, 2025

Today’s highest savings rates are at FDIC-insured digital banks and online accounts paying out up to 4.40% APY with no or low minimums at Bread Financial, Valley Bank, SoFi and other trusted providers as of Monday, March 24, 2025.

These brands may not sound as familiar as American Express, Capital One or Discover, though they are FDIC-insured internet-only banks or partner with an FDIC-insured bank to offer deposit accounts that are insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) — just like those at your neighborhood bank.

And while the Federal Reserve once limited transactions and withdrawals from high-yield savings accounts to six a month, that limitation is permanently suspended in the wake of the pandemic, with many banks no longer restricting how often you can move money in and out of your account.

Dig deeper: How to find and open a high-yield savings account in 5 steps

Traditional savings account rates

The Federal Deposit Insurance Corporation tracks monthly average interest rates paid on savings and other deposit accounts, like certificates of deposit, that offer insight into the interest you might receive at your local bank or on traditional accounts.

Here’s how FDIC national deposit rates on a $10,000 minimum deposit compare between January and February 2025 on traditional low-interest deposit accounts.

Pulling back on average rate updates over the past year shows minimal movement for traditional savings accounts with bigger movement on short- and long-term CDs.

The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Dig deeper: 13 common bank fees you shouldn’t be paying — and how to avoid them

What is a savings account?

A savings account is a type of deposit account designed for storing money you don’t expect to use for regular expenses, like paying bills or buying groceries. These accounts don’t typically offer check-writing privileges or debit cards, though you can find limited checking with a high-yield money market account.

Saving accounts earn you interest on your balance — anywhere from a modest 1% APY with a traditional account to a lucrative 4% APY and higher for high-yield accounts — compounding what you earn and helping your savings to grow faster.

Simple interest vs. compound interest

Simple interest refers to the interest you earn on your principal balance only. Let’s say you invest $10,000 into an account that pays 3% in simple interest. After three years, you’d have earned $900 in interest — $300 each year — for a total of $10,900 in your account.

Now let’s say you invest $10,000 in an account that pays 3% compounded annually. At the end of the first year, you’d have earned $300 in interest, for a total of $10,300 in your account. If you left your account as is for another year, you’d have earned another $309 in interest — $300 on your initial deposit and another $9 on the interest reinvested from year one — for a new total of $10,609. Year three, you’d earn another $318.27 in interest — $300 on your initial deposit and another $18.27 on the interest you earned. At the end of the same three years, you’d have earned $927.27 in interest for a total of $10,927.27 in your account — and that’s without additional contributions to that initial $10,000.

Savings accounts can compound daily, monthly or quarterly, depending on the bank and account. The more frequent the compounding, the more you can earn — so read your account’s disclosure statements to understand how often your interest is compounded and credited to your account. Larger balances over longer periods can add up to even more significant savings.

Dig deeper: What is compound interest? How compounding works to turn time into money

High-yield savings accounts vs. traditional savings accounts: What’s the difference?

There’s no official definition for either of these accounts. Rather, each is a type of deposit account that can earn you incremental interest on your balance, helping you to grow your savings. The money you save in these accounts is federally insured up to $250,000 by the FDIC or the NCUA for up to $250,000 per person, per account, protecting your nest egg against risk.

Your earning potential is the most important difference between an HYSA and a traditional savings account. A high-yield savings account can earn you significantly more interest than a traditional savings account, with digital banks and online accounts offering the strongest rates, passing along overhead savings in the form of high yields — more than 10 times the national average when compared to a traditional account. The best of these digital banks and online accounts come with no fees and no minimum deposits — like SoFi Checking and Savings that pays up to 3.80% APY — removing any challenges to maintaining your account over the long term.

Dig deeper: High-yield savings vs. traditional savings account: Why it’s worth the switch

How to compare the best savings accounts

Digital banking opens up more competitive rates and fewer fees than your neighborhood brick-and-mortar bank, and robust apps make it easy to keep an eye on your balance, manage money among everyday accounts and deposit checks from your smartphone or tablet.

Yet while it’s tempting to choose an account based only on its highest advertised APY, interest rates on savings accounts are variable — meaning rates can fluctuate after you open one and change over time. And you could be earning a lower rate if the Fed continues to cut its benchmark interest rate later this year.

Instead, look for an account that fits the way you like to bank, weighing factors that include:

• Promotional rates. Today’s high-yield accounts can earn 4% APY and higher. Yet some accounts advertise promotional or limited-time rates to entice you to sign up before adjusting to a lower rate based on market conditions.

• Low or no minimums. The best savings accounts require no minimum deposit or balance to earn interest, though you might be required to open with a minimum deposit or maintain a specific monthly balance to avoid monthly maintenance or service fees.

• Ease of accessing your money. Look for flexibility that includes ATMs and mobile apps that accept checks for deposit — or branch access, if you prefer in-person banking.

• FDIC or NCUA protections. Savings accounts are federally insured for up to $250,000 per account, per person — which means your money is safe up to the limit.

Dig deeper: Can you lose money in a high-yield account? It’s unlikely, but here’s what to watch out for

Other deposit accounts to save and grow your money

A savings account can offer flexible access to your money, but it isn’t the only safe place to store your savings and earn interest on your balance. Look to these alternatives that offer steady returns at APYs that can outpace traditional accounts.

• Certificate of deposit. A CD guarantees a high fixed rate of return on a principal deposit at the end of an agreed-on term. CDs differ from savings accounts in that you risk a withdrawal penalty if you need to access your money before the CD matures — though a CD ladder can help you leverage today’s strongest rates with flexible, rolling returns into next year or longer.

• Money market account. Also called a money market savings account, the rate on an MMA can beat those of traditional savings accounts with the same access to your money and often with limited debit and check-writing privileges.

• High-yield checking account. A high-yield checking account is like a money market account in that it combines high APYs with checking benefits, but with unlimited debit and check-writing privileges you won’t find with an HYSA or MMA.

Dig deeper: HYSA vs. money market account: Which high-APY account is best for your cash?

Savings rates and high-interest accounts in the news

Savings rates strongly correlate with the target interest rate set by the Federal Reserve, the country’s central bank. This Fed rate is the benchmark that affects interest rates set for deposit accounts, loans, mortgages, credit cards and other financial products. As the Fed rate rises, so do APYs on savings accounts, CDs and money market accounts — with today’s rates on the best high-yield savings accounts topping 4% APY.

After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate on September 18, followed by two additional quarter-point cuts after its November and December policy meetings.

March 19, 2025: Fed pauses rate cuts for a second time

At the end of its second rate-setting policy meeting of the year, on March 19, 2025, the Fed announced holding the federal funds target interest rate steady at a range of 4.25% to 4.50%. It marks the second time the Fed’s paused a rate change since its three back-to-back cuts in September, November and December, dropping the Fed rate by a full percentage point in its continued focus on getting the inflation rate closer to an average 2%.

In its post-meeting statement, the Federal Reserve said it was maintaining the target range in its continuing effort to achieve “maximum employment” and tame inflation to 2%.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the Fed said in its statement, noting, “Uncertainty around the economic outlook has increased.”

“In considering the extent and timing of additional adjustments,” the Fed said it would “carefully assess incoming data, the evolving outlook, and the balance of risks.”

The Fed also updated its economic projections that show officials expecting to make two quarter-point cuts in 2025 against an uncertain outlook that anticipates slower growth and higher inflation ahead.

What to expect at the Fed’s next policy meeting: May 6–7, 2025

It’s too early to predict what the Federal Reserve will decide at its next policy meeting on May 6 and May 7, 2025.

Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate, with data indicating sticky inflation from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023.

Fresh jobs data released on March 7 from the Bureau of Labor Services showed unemployment rising to 4.1% in February, down from 4.0% in January. Employers added 151,000 jobs to payrolls — less than the 160,000 to 170,000 expected yet exceeding the revised 125,000 posted for January. Due to reporting cutoffs, these numbers don’t reflect the effects of President Trump’s trade war, plans for mass deportation of immigrants and a push to layoff some 10,000 federal workers, with business leaders flagging “clouds on the horizon” amid declining consumer confidence and general economic uncertainty.

Meanwhile, the consumer price index released on March 12 showed the annual inflation rate easing to 2.8% in February, under 3% in the previous month, cooling concerns about the health of the economy. The latest reading showed a monthly increase of 0.2% in the prices average Americans pay for goods and services, down from 0.5% in January. The producer price index released on March 13 reported a similar slowing of wholesale inflation — the prices producers are paid for goods and services — falling 0.1% from the previous month and 3.2% for the 12 months ending in February.

At a post-meeting press conference on March 19, Federal Reserve Chair Jerome Powell cited the Fed’s economic outlook for slower growth and higher inflation, saying, “I think we were getting closer and closer” to the Fed’s 2% inflation goal, but that a “good part” of it is coming from tariffs: “We’ll be working and so will other forecasters to try to find the best possible way to separate non-tariff inflation from tariff inflation.”

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Wednesday, May 7, 2025, at 2 p.m. ET.

Dig deeper: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances

Key terms to know

• Annual percentage yield. Called the APY, this is the total amount of interest you’ll earn on your deposit over one year, including compound interest, expressed as a percentage.

• Member FDIC. When a bank or financial institution is advertised as a member of the FDIC, it means that your money is protected by the Federal Deposit Insurance Corporation. Funds held by member FDIC institutions are insured and federally protected for up to $250,000 per depositor, offering a layer of protection if the bank were to go out of business.

• Maintenance or service fee. Some banks charge fees each month for simply holding your money, but many of the best high-yield savings accounts charge no monthly maintenance fees if you can meet account requirements.

• Minimum deposit. As with monthly fees, some banks require you to deposit a minimum amount of money when opening your account as a way for them to profit from fees if required balances aren’t met. The best high-yield savings accounts require no minimum balances to earn high rates of interest.

• Variable APY. APYs can be fixed or variable, depending on the type of deposit account. Fixed rates don’t fluctuate when, say, the Fed rate changes, while variable APYs do. Confirm the type of rate for the account you’re interested in to understand whether the rate is fixed or variable.

• Federal Reserve. The Federal Reserve — or Fed — is the central bank of the United States and the anchor of the financial system. Its Board of Governors is appointed by the president and confirmed by the Senate with the goals of maximizing employment, stabilizing prices and moderating long-term interest rates. Its Federal Open Market Committee meets throughout the year, when it sets the federal funds target rate that influences deposit account rates.

Dig deeper: Fixed vs. variable interest rates — how they work for borrowing and saving

Frequently asked questions about savings accounts

Learn more about how savings accounts work when narrowing down the best for your budget, lifestyle and financial goals with these common questions. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

Which is best for flexible savings: a no-penalty CD or a high-yield account?

Both are low-risk investments that offer a safe way to grow your money while earning interest without paying a fee for withdrawals. Yet which is better comes down to your deposit amount, need for access and savings goals. Learn how they differ — and what to consider — in our comparison guide to no-penalty CDs and savings accounts.

I’ve saved up $10,000. Where’s the best place to put it?

Saving up $10,000 is an impressive milestone that opens up several financial opportunities that can better position you for a more stable financial future. You can put it to work through passive income streams, contribute to growing a retirement fund or pay down high-interest debt. See our guide to the five smartest moves to make with your $10,000.

What is compound interest?

Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. An account’s APY is the total amount of interest you’ll earn on your deposit over one year, including compound interest, expressed as a percentage, with many HYSAs compounding daily or monthly. Learn more about how you can turn time into money in our guide to compounding.

Do I need to pay taxes on a savings account?

Yes. Interest you earn on your savings account is considered taxable income by the IRS. If you earn more than $10 in interest in a calendar year, your bank or financial institution will send you a Form 1099 to file with your annual tax return.

Which is best: fixed rates or variable rates?

There’s no best type of interest rate — rather, the difference is that fixed rates stay the same over time while variable rates can change based on market conditions. In many cases, the choice between fixed and variable rates will be a choice between products. Learn more about the difference between fixed and variable rates, and the ways they affect how you borrow and save money.

How do banks make money on savings accounts?

Banks charge higher interest rates on money they lend out to borrowers than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money.

Online banks and digital accounts don’t require the overhead of brick-and-mortar branches, allowing them to pass along savings to you in the form of even higher APYs than you might find in your neighborhood.

Is my money safe with an online-only neobank or digital account?

Yes. Neobanks are fintech — or financial technology — companies that partner with more recognizable FDIC-insured banks to offer deposit accounts protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the neobank or fintech were to fail or go out of business. Look for terms like “member FDIC,” “FDIC insured” or “NCUA insured” when comparing your options. Learn more about how to confirm your bank is FDIC-insured.

What’s the difference between saving and investing?

The core difference between saving and investing lies in the accessibility of your money and the risks you take with it. Saving means keeping your money in secure accounts with little to no risk of losing your principal. On the other hand, investing involves buying assets like stocks, bonds or mutual funds that can potentially earn higher returns. Learn more in our guide to saving and investing to find the best approach for your nest egg.

Editor’s note: Annual percentage yields shown are as of Monday, March 24, 2025, at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

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