Three years ago, I was earning a whopping 0.01% on my emergency fund at Chase. Yeah, you read that right – basically nothing. On $15,000, I was making about $1.50 per year. I could literally find more money in my couch cushions.
Then my buddy Sarah told me she was earning over $600 a year on the same amount, just by switching to a high-yield savings account. I thought she was pulling my leg.
Spoiler alert: she wasn’t.
After spending the last three years obsessively tracking savings account rates, opening accounts at different banks, and moving my money around like some kind of interest rate nomad, I’ve learned which banks actually pay you what your money is worth.
And right now? Even after the Fed’s September 2025 rate cut, we’re still in a pretty good era for savings account interest rates.
Quick Answer: Top 5 Highest-Paying Savings Accounts Right Now
Before I dive into all the details, here’s what you came here for – the banks currently offering the highest APY on savings accounts:
1. Varo Money – 5.00% APY (restrictions apply, $5,000 balance cap for highest rate)
2. Axos Bank ONE Savings – 4.46% APY (no minimum balance)
3. SoFi Bank – Up to 4.50% APY (promotional rate for new customers, drops to 3.80% after 6 months)
4. Newtek Bank – 4.35% APY (no minimum balance)
5. Zynlo Bank – 4.35% APY (online bank, no minimum)
Rates as of September 23, 2025 and subject to change. I update this list monthly because these rates move faster than my mood on a Monday morning.
But here’s what most comparison sites won’t tell you: the highest rate isn’t always the best deal. Keep reading, and I’ll show you why.
Current High-Yield Savings Account Rate Comparison
Here’s a complete breakdown of the best rates available right now, including the fine print that matters:
Varo Money – 5.00% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: New savers ($5,000 max balance at highest rate)
- Special Requirements: Must have $1,000+ monthly direct deposits
SoFi Bank – 4.50% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: New customers (promotional rate for 6 months)
- Special Requirements: Rate drops to 3.80% after promotional period
Axos Bank ONE Savings – 4.46% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Reliable high rate with no catches
- Special Requirements: None
Newtek Bank – 4.35% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Consistent performer, established online bank
- Special Requirements: None
Zynlo Bank – 4.35% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Simple online banking, no frills
- Special Requirements: None
Poppy Bank – 4.25% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Smaller bank with competitive rate
- Special Requirements: None
UFB Direct – 4.21% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Strong mobile app experience
- Special Requirements: None
Bask Bank – 4.20% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Texas-based online bank, solid customer service
- Special Requirements: None
Barclays Online Savings – 3.90% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Established brand name, reliable
- Special Requirements: None
Marcus by Goldman Sachs – 3.90% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Excellent customer service, financial stability
- Special Requirements: None
Ally Bank Online Savings – 3.50% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Best overall mobile app experience
- Special Requirements: None
American Express Personal Savings – 3.50% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Best For: Big brand recognition, reliable service
- Special Requirements: None
Rates accurate as of September 23, 2025. All banks listed are FDIC-insured. Rates subject to change without notice.
How Do High-Yield Savings Account Rates Compare in 2025?
Let me put this in perspective. The national average savings account rate is 0.40%. That means on $10,000, you’re earning about $40 per year.
With a 4.5% high-yield savings account, that same $10,000 earns you roughly $450 per year. That’s the difference between a decent dinner out and a weekend getaway.
Online Banks vs Traditional Banks: The Rate Reality Check
I’ve been banking with Wells Fargo for 15 years. Love their customer service, hate their savings rates. Here’s the brutal comparison:
Traditional Big Banks (as of September 2025):
- Chase Savings: 0.01% APY
- Bank of America Savings: 0.03% APY
- Wells Fargo Way2Save: 0.05% APY
- Citibank Basic Savings: 0.05% APY
High-Yield Online Banks:
- Axos Bank ONE: 4.46% APY
- SoFi Bank: Up to 4.50% APY
- Ally Bank Online Savings: 3.50% APY
- American Express Personal Savings: 3.50% APY
The difference? Online banks don’t have the overhead costs of physical branches, so they can pass those savings on to customers in the form of higher interest rates.
What’s Driving These High Interest Rates?
The Fed dropped its benchmark interest rate in September 2025, but rates are still historically high. Here’s the simple version: when the Fed raises rates to fight inflation, banks can afford to pay higher rates on deposits.
Even after the recent rate cut, high-yield savings accounts have generally not experienced significant APY swings lately, but there have been rate decreases over the past few months. The good news? Even if rates come down further, high-yield savings accounts will still significantly outperform traditional bank accounts.
Best High-Yield Savings Accounts by Category
I’ve opened accounts at seven different banks over the past two years to test everything from their mobile apps to customer service wait times. Here’s what I’ve learned:
Highest APY (With Restrictions)
Winner: Varo Money at 5.00% APY
This is the only bank I’ve found that still offers a 5% APY, but there’s a catch – to earn the high APY, you must have at least $1,000 in monthly direct deposits and a positive balance at the end of the month in your Varo bank account. Plus, the highest rate only applies to balances up to $5,000.
The Good:
- True 5% APY if you meet requirements
- No monthly fees
- Mobile-first banking experience
- FDIC insured up to $250,000
The Not-So-Good:
- Must meet direct deposit requirements
- $5,000 balance cap for the highest rate
- Relatively new bank (less track record)
Highest APY (No Catches)
Winner: Axos Bank ONE Savings at 4.46% APY
Axos Bank. Its ONE savings account earns a 4.46% APY and is currently the highest rate I can find with absolutely no strings attached.
The Good:
- Truly no minimum balance
- No monthly fees
- No rate caps or tiers
- FDIC insured up to $250,000
- Established online bank with a good reputation
The Not-So-Good:
- Online-only (no physical branches)
- Customer service can be slow during peak times
My Experience: I opened an account in August 2025 and funded it with $5,000. The process took about 15 minutes online, and my first interest payment was exactly what they promised. No surprises, no hidden fees.
Best for Large Balances ($25,000+)
Winner: Marcus by Goldman Sachs at 3.90% APY
This is where I keep the bulk of my emergency fund. While not the highest rate anymore, Marcus has been consistently competitive and reliable. As part of Goldman Sachs, they’re not going anywhere.
Why It’s Great for Big Balances:
- Reliable rate history (they don’t play games with teaser rates)
- Excellent customer service
- Clean, simple interface
- No balance limits or tiers
- Strong reputation and financial backing
Real Numbers: On a $25,000 balance, you’re earning about $81 per month in interest. That’s still real money.
Best Overall Experience
Winner: SoFi Bank at 4.50% APY (promotional)
SoFi’s online bank account — a combination checking and high-yield savings account — made our list for its competitive APY, lack of fees, and bundled approach to saving and spending.
Why I Recommend It:
- Highest current rate for new customers
- Combined checking and savings in one account
- Excellent mobile app
- No fees anywhere
- Automatic round-ups and savings features
The Catch: For a limited time, new customers can earn a boost on their savings rate (up to 4.5% APY) by meeting certain requirements. After 6 months, the rate drops to 3.80% APY.
Best Mobile App Experience
Winner: Ally Bank at 3.50% APY
Ally’s mobile app is legitimately better than most traditional banks. If you do most of your banking on your phone, this matters more than you might think.
App Features I Actually Use:
- Photo check deposit (works every time)
- Instant balance updates
- Easy external transfers
- Savings goals tracking with visual progress
- Bill pay integration
- Spending categorization
How Much More Will You Actually Earn?
Let me show you real numbers because percentages can be confusing:
$1,000 Balance:
- Traditional bank (0.05%): $0.50 per year
- High-yield savings (4.50%): $45.00 per year
- Difference: $44.50 more
$5,000 Balance:
- Traditional bank: $2.50 per year
- High-yield savings: $225 per year
- Difference: $222.50 more
$15,000 Balance (typical emergency fund):
- Traditional bank: $7.50 per year
- High-yield savings: $675 per year
- Difference: $667.50 more
That extra $667 could cover a car repair, help with holiday expenses, or just make you feel better about your financial situation.
Are High-Yield Savings Accounts Actually Safe?
This was my biggest concern when I first started looking into online banks. “If they’re paying so much more, what’s the catch?”
FDIC Insurance: Your Safety Net
Every legitimate high-yield savings account I recommend is FDIC insured, which means:
- Your deposits are protected up to $250,000 per depositor, per bank
- Even if the bank fails, you get your money back
- It’s backed by the federal government
I’ve never had an FDIC-insured bank lose my money. Not once. The insurance works.
What Happens if Interest Rates Drop?
High-yield savings account interest rates can and do change. I’ve seen my rates drop from 4.5% to 3.9% in a single month after Fed announcements.
But even if rates fall by half (which would be dramatic), you’re still earning way more than traditional banks. When online banks were paying 2.0% during the pandemic lows, Chase was still paying 0.01%.
The key is staying flexible and being willing to adjust your investments if interest rates change significantly.
How Do I Choose the Right High-Yield Savings Account?
After testing multiple accounts, here’s my decision framework:
Start with These Questions:
How much are you planning to save?
- Under $5,000: Varo Money (5.00% APY with restrictions)
- $5,000-$25,000: Axos Bank (4.46% APY, no restrictions)
- Over $25,000: Marcus by Goldman Sachs (reliability and service)
Are you a new customer willing to switch?
- Yes: SoFi Bank (4.50% promotional rate)
- No: Axos Bank (consistently high rates)
Do you want everything at one bank?
- Yes: SoFi (checking + savings combined)
- No: Go with whoever pays the highest rate
Red Flags to Avoid:
I’ve learned these the hard way:
- Teaser rates that drop dramatically after 3-6 months
- Balance caps where you only earn the high rate on small amounts
- Complex requirements to earn the advertised rate
- Monthly fees that eat into your interest
- No FDIC insurance (some credit unions use NCUA, which is fine too)
How to Open a High-Yield Savings Account (Step-by-Step)
I’ve done this enough times to streamline the process:
Before You Start:
- Check your current rate and calculate how much you’re losing
- Gather documents: driver’s license, Social Security card, recent bank statement
- Decide how much to transfer (I usually start with $1,000 to test the waters)
The Opening Process (Usually Takes 10-15 Minutes):
Step 1: Go to the bank’s website and click “Open Account” Step 2: Fill out personal information (name, address, SSN, employment) Step 3: Choose funding method (bank transfer, check, or wire) Step 4: Review terms and submit application Step 5: Wait for account verification (usually 24-48 hours) Step 6: Set up online/mobile access Step 7: Transfer your money
Pro Tips from My Experience:
- Start small – Transfer $1,000 first to make sure everything works
- Keep your old account open for 30 days in case you need to reverse course
- Set up automatic transfers once you’re comfortable
- Screenshot the rate when you open (for your records)
Which High-Yield Savings Account Should You Choose Right Now?
Based on everything I’ve tested, here’s what I’d do in different situations:
If you’re just starting out: Varo Money – 5% APY up to $5,000, perfect for building initial savings
If you have serious money to save: Axos Bank – 4.46% APY with no tricks or caps
If you want the best overall experience: SoFi Bank – 4.5% promotional rate plus excellent features
If you love mobile banking: Ally Bank – best app, solid 3.5% rate, great customer service
If you have $50,000+: Split between two banks to maximize FDIC coverage
Fed Rate Cuts: What They Mean for Your Savings
The Federal Reserve made its first rate cut to the federal funds rate this year in September 2025, dropping rates by 0.25%. Here’s what this means for savers:
The Reality:
- Savings rates will likely continue declining gradually
- Consumers can expect to see the interest rates paid on most HYSAs decline as the Fed lowers rates
- The best rates might drop from 4.5% to 3.5-4.0% over the next year
What You Should Do:
- Lock in current high rates while you can
- Consider longer-term CDs if you want rate protection
- Don’t panic – even 3.5% is still 10x better than traditional banks
- Stay flexible and be ready to move money if rates change dramatically
Frequently Asked Questions
Which savings account has the highest interest rate right now? Varo Money currently leads the pack with an impressive 5.00% rate on its high-yield savings account, but this only applies to balances up to $5,000 and requires meeting direct deposit requirements. For larger balances with no restrictions, Axos Bank ONE Savings at 4.46% APY is your best bet.
Are online high-yield savings accounts safe? Yes, as long as they’re FDIC insured. I’ve been using online banks for three years without any security issues. The FDIC insurance means your deposits are protected up to $250,000 per bank, same as traditional banks.
What’s the catch with high-yield savings accounts? The main “catch” is that most are online-only, so no physical branches. Some have balance caps (like Varo’s $5,000 limit for the highest rate) or require direct deposits. Always read the fine print.
How often do savings account rates change? Variable rates can change anytime, but most banks give notice before major changes. For example, in January 2025, NerdWallet recorded a 3.80% APY for Ally Bank’s savings account, but the yield dropped to 3.50% by July 2025. I’ve seen rates adjust monthly during volatile periods.
Should I move all my money to a high-yield savings account? Keep some money in a local bank for immediate access, but yes – there’s no reason to earn 0.01% when you could earn 4%+ on your emergency fund and other savings.
What’s the minimum amount needed to open a high-yield savings account? Most of the best accounts have no minimum balance requirement. SoFi, Axos, and Varo all require $0 to open, though some require small initial deposits ($25-100).
Can I lose money in a high-yield savings account? No, you cannot lose your principal in an FDIC-insured savings account. The worst that can happen is rates decrease, reducing your future interest earnings.
How much interest will $10,000 earn in a high-yield savings account? At 4.5% APY, $10,000 earns approximately $450 per year, or about $37.50 per month. Compare this to $4 per year at most traditional banks.
Are credit union savings rates better than banks? Sometimes, but not always. Many of the highest rates now come from online banks. Credit unions often have membership requirements that can be restrictive.
What happens if I go over the $250,000 FDIC limit? Open accounts at multiple banks to stay under the limit at each one. Some banks partner with networks to offer higher coverage, but multiple banks is the safest approach.
How long does it take to transfer money from a high-yield savings account? Usually 1-3 business days for ACH transfers. Some banks offer same-day transfers for a fee. Plan ahead for large purchases or emergencies.
Should I use a high-yield savings account for my emergency fund? Absolutely. Emergency funds should be easily accessible and earning as much interest as possible while staying safe. High-yield savings accounts are perfect for this – just make sure to keep enough in an account that’s easily accessible when you need it quickly.
Do I have to pay taxes on savings account interest? Yes, interest earnings are taxable income. You’ll receive a 1099-INT form if you earn more than $10 in interest. With today’s high rates, you’ll likely hit that threshold quickly.
Can I have multiple high-yield savings accounts? Yes, and I actually recommend it. I keep accounts at different banks to maximize FDIC coverage and take advantage of the best rates. Just don’t overcomplicate your finances.
What’s the difference between APY and interest rate? APY (Annual Percentage Yield) includes compounding and gives you the real rate of return. Always compare APYs, not just interest rates, when shopping for accounts.
Will high-yield savings rates keep dropping? More rate cuts among more banks are likely as the Fed continues to adjust policy. However, even if rates drop to 3-3.5%, that’s still significantly better than traditional bank accounts.
The Bottom Line: Stop Leaving Money on the Table
Look, I get it. Moving banks feels like a hassle. Setting up new accounts, transferring money, learning new apps – it’s not exactly fun.
But here’s the math: if you have $10,000 in a traditional savings account earning 0.05%, you’re losing about $445 per year compared to a 4.5% high-yield account. Over five years, that’s over $2,200.
Is setting up a new account worth $2,200? I think so.
The biggest mistake I made was waiting so long to make the switch. Don’t be like me. Your money should be working as hard as you do.
Even with the Fed starting to cut rates, we’re still in a historically good period for savers. Take advantage while you can.
My recommendation: Start with one account and $1,000. See how it works. Once you’re comfortable, move the rest of your savings over. Your future self will thank you when those monthly interest payments start hitting your account.
Ready to stop earning basically nothing on your hard-earned money?
Need help deciding how much to keep in your high-yield savings account? Check out our guide on building bulletproof personal finance habits to create a complete savings strategy that works.
Monthly Rate Update Reminder: Bookmark this page! I update these rates and recommendations monthly to ensure you’re always getting the most current information. Next update scheduled for October 25, 2025.
