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Key takeaways
- Savings yields remain high — topping 4.44 percent APY — as the Federal Reserve holds interest rates steady.
- Economic outlook remains slightly uncertain as ongoing concerns around trade policy and global supply chains keep the Federal Reserve cautious.
- With savings account yields still outpacing inflation, parking your funds in a high-yield savings account can help preserve purchasing power and grow your money with minimal risk.
Savings account annual percentage yields (APYs) have remained steady since the Federal Reserve announced another interest rate pause — neither raising nor lowering rates — during its June 17-18 meeting.
The federal funds rate remains at a target range of 4.25-4.5 percent — and it’s been at that target range since the central bank last lowered its benchmark interest rate in December. The main reason? An uncertain economic outlook. At its June meeting, Federal Reserve Chairman Jerome Powell stressed maintaining rates to prevent ongoing inflation problems.
Changes to trade, immigration, fiscal and regulatory policies continue to evolve, and their effects on the economy remain uncertain. … Our obligation is to keep longer-term inflation expectations well-anchored and to prevent a one-time increase in the price level to become an ongoing inflation problem.
— Jerome Powell | Chairman, Board of Governors of the Federal Reserve
What are today’s best savings account rates?
The highest-yielding savings account currently available nationally is from Peak Bank, a division of Idaho First Bank, which offers a 4.44 percent APY for new accounts only. Although not currently monitored by Bankrate’s editorial team, Peak’s offer shows that you can earn a competitive APY if you open a high-yield savings account today.
Of the banks and credit unions Bankrate monitors, several banks continue to be tied for the top, competitive rate of 4.30 percent APY, slightly lower than what Peak Bank is offering.
Note: Annual percentage yields (APYs) are as of June 30, 2025. APYs for some products may vary by region.
The latest news from the Federal Reserve
While the Fed noted that economic uncertainty has decreased — as unemployment remains low and the labor market remains strong — some unpredictability still remains, particularly as it comes to President Donald Trump’s tariffs and the effects they will have on the U.S. economy.
The Fed says it will continue to monitor how these trade measures will affect consumer prices, business investment and global supply chains. Thus, although the overall economic outlook is currently stable, the Fed emphasized that it stands ready to adjust its policy stance if conditions change significantly.
Benefits of a high-yield savings account in today’s rate environment
The major benefit of a high-yield savings account is that you can earn interest on your savings considerably faster with an account earning an APY of 4 percent, compared with and account with a negligible APY of 0.01-0.10 percent, which you can find at most large, traditional brick-and-mortar banks. With interest rates holding steady at higher levels, savers are continuing to see strong returns on high-yield savings accounts and certificates of deposit (CDs). These products offer some of the best yields in recent memory, making them attractive options for building emergency funds or saving for short-term goals.
If you’re looking to grow your money in a low-risk way that offers steady returns, now is the time to consider opening or switching to a high-yield savings account. The longer you let your money sit in a high-yield account — before the Fed cuts interest rates further — the more you’ll capitalize on the high returns that savings accounts are currently offering.
— Marcos Cabello | Bankrate consumer banking writer
With deposit yields still outpacing inflation, funds in these accounts aren’t just sitting idle; they’re actively working to preserve your purchasing power.
It’s worth exploring other types of deposit accounts beyond savings accounts, depending on your financial goals. In fact, for those looking to lock in a fixed rate or benefit from additional account features, CDs and interest checking accounts are both good options. Especially when it comes to locking in a fixed rate, CDs guarantee that you’ll earn the same high 2025 yield — even when it’s 2026 and beyond.
When choosing a deposit account, though, look beyond just the headline APY. Consider the account’s fine print, such as minimum balance requirements, monthly and overdraft fees and account bonuses.
Bottom line
Interest rates may be on pause, but high-yield savings accounts are still delivering some of the best returns in years. Whether you’re building an emergency fund or saving for near-term goals, this is a strong window to make your money work harder in a secure, low-risk account. Just be sure to compare APYs, account requirements and fees to find the best fit for your needs.
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