Deposit rates have been steadily declining. The Federal Reserve cut the federal funds rate three times in late 2024 and three times in 2025.
High-yield savings accounts pay more interest than typical savings accounts, with rates as high as 4% APY and above. The average savings account rate is 0.39%, while the best savings interest rates are generally around 4% to 4.5% APY.
As of January 14, 2026, the highest savings account rate available from partners is 4% APY. This rate is offered by SoFi.
Deposit account rates, including savings rates, are tied to the federal funds rate. When the Federal Reserve lowers its target rate, deposit rates fall.
After multiple interest rate hikes in response to inflation, the Fed lowered the federal funds rate three times in late 2024. Rates continued on a downward trend throughout 2025. Deposit rates have been falling for some time.
Experts suggest additional rate cuts could be on the horizon. Savings account rates are expected to continue falling. High-yield savings accounts remain one of the best places to safely store cash and earn the best deposit rates available.
Choosing where to put money is an important decision. A high-yield savings account could make sense for a secure place to hold shorter-term savings while earning a solid return.
One key consideration is the interest rate. It is important to shop around and compare offers. Considering that savings rates will likely drop in the near future, opening a high-yield savings account now allows taking advantage of historically high rates.
Today’s high-yield savings accounts offer rates not seen in over a decade. Savings rates still do not match average stock market returns. For long-term goals like retirement, a savings account may not be the best place, as balances will not grow at a pace to reach targets. For short-term goals like emergencies, down payments, or holiday gifts, a savings account is a great place to hold funds.
Accessibility is another factor. Certain accounts may provide higher returns but make it difficult to access funds quickly. For example, certificates of deposit may have early withdrawal penalties. If needing to dip into savings as needed, a high-yield savings account is likely the better choice.
Security is also a consideration. In most cases, savings accounts are insured by the FDIC up to the federal limit. They cannot lose money due to market fluctuations, making them a low-risk option.
SoFi offers up to 4% Annual Percentage Yield on SoFi Savings with a 0.70% APY Boost for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by January 31, 2026. Rates are variable and subject to change. Terms apply. SoFi Bank, N.A. is a Member FDIC.