In 2024, the Federal Reserve began cutting the federal funds rate, a trend that continued through 2025. Deposit interest rates have declined from previous highs as a result.
Despite this, some high-yield savings accounts still pay above 4% APY. The national average rate for savings accounts is 0.39%, according to FDIC data.
As of January 16, 2026, the highest available savings account rate among verified partners is 4% APY. This rate is offered by SoFi, Barclays, and Valley Direct.
SoFi's offer includes a 0.70% APY boost added to a 3.30% APY as of November 12, 2025, for up to six months. To qualify, customers must open a new SoFi Checking & Savings account and enroll in SoFi Plus by January 31, 2026. Rates are variable and terms apply.
Interest rates vary widely between institutions. Online banks often provide competitive rates due to lower overhead costs, passing savings to customers through high deposit rates and low fees. Many high-yield savings accounts have no monthly fees or minimum opening deposit requirements.
Credit unions, as not-for-profit financial cooperatives, also offer rates between 4% and 5% APY with fewer fees. Some credit unions have membership requirements, while others are open to most applicants.
Savings accounts are insured by the FDIC or NCUA, protecting deposits up to $250,000. They do not lose value due to market fluctuations.
For long-term goals like retirement, market investments such as stocks, index funds, and mutual funds may offer higher returns. Savings accounts are suitable for short-term goals like home down payments, vacations, or emergency funds, providing easier access to funds compared to money market accounts or certificates of deposit.