The Federal Reserve cut the federal funds rate three times in late 2024, which means deposit rates are now falling. It’s more important than ever to ensure you’re earning the highest rate possible on your savings, and a high-yield savings account could be the solution.

These accounts pay more interest than the typical savings account — as much as 4% APY and higher. Not sure where to find the best savings interest rates today? Read on to find out which banks have the best offers.

Historically speaking, savings account interest rates have been high. That said, the rates on traditional savings accounts pale in comparison to those offered for high-yield savings accounts.

For example, the average savings account rate is just 0.42%, while the best savings interest rates are generally around 4.0% to 4.5% APY.

As of January 8, 2025, the highest savings account rate available from our partners today is 4.75% APY. This rate is offered by Openbank and there is a $500 minimum opening deposit required.

Here is a look at some of the best savings rates available today from our verified partners:

Related: 10 best high-yield savings accounts in 2025>>

Deposit account rates — including savings rates — are tied to the federal funds rate. This is the target interest rate set by the Federal Reserve; when it increases its target rate, deposit account rates usually increase. And conversely, when the Fed lowers its rate, deposit rates fall.

After multiple interest rate hikes by the Fed in response to skyrocketing inflation, it finally lowered the federal funds rate three times in late 2024. As a result, deposit rates are falling as well.

Experts anticipate that the Fed will cut its target rate two more times in 2025, so we can expect savings account rates to continue falling this year. However, high-yield savings accounts remain one of the best places to safely store cash and earn the best deposit rates available.

Read more: I bond vs. high-yield savings account: Which is better for beating inflation?

Choosing where to put your money is an important decision, and there are a few factors you should consider when evaluating your options. A high-yield savings account could make sense if you’re looking for a secure place to hold shorter-term savings while earning a solid return. Here are a few key considerations:

• Interest rates: One of the most important features of a savings account is the interest rate. It’s important to shop around and compare the best offers to ensure your money will grow over time. Considering that savings rates will likely drop in the near future, opening a high-yield savings account now will allow you to take advantage of historically high rates.

• Goals: Today’s high-yield savings accounts offer rates we haven’t seen in more than a decade. That said, savings rates still don’t match average returns for the stock market. If you’re saving for a long-term goal like retirement, a savings account probably isn’t the best place to put your money, since your balance won’t grow at a pace that will allow you to reach your target. However, if you’re saving for a financial emergency, a down payment on a home or car, gifts for the holiday season, or another short-term goal, a savings account is a great place to hold those funds.

• Accessibility: Certain types of accounts and investments may provide higher returns than a savings account, but may make it difficult to access your funds in a pinch. For example, if you put your savings in a certificate of deposit (CD) and need to access the money before the maturity date, you could be subject to an early withdrawal penalty. So, if you want to be able to dip into your savings as needed, a high-yield savings account is likely the better choice.

• Security: In most cases, savings accounts are insured by the FDIC up to the federal limit. They also can’t lose money due to fluctuations in the market, making them a low-risk option.

Read more: Can you negotiate a higher savings account rate with your bank?