High-Yield Savings Rates
Current high-yield savings account rates comparison, how to choose the best HYSA, and rate history tied to Federal Reserve decisions
Key Numbers
Top Rates
4–5% APY
National Avg
0.39%
FDIC Insured
$250,000
Fed Rate
3.50–3.75%
A high-yield savings account (HYSA) pays significantly more interest than a traditional bank account — often 10–100x more. Online banks offer the highest rates because they operate without physical branches and pass the overhead savings to customers as higher APY. All FDIC-insured up to $250,000, identical to Chase or Bank of America.
Interest Earned on $10,000 (1 Year)
| Account Type | APY | Interest Earned | vs. Top HYSA |
|---|---|---|---|
| High-Yield Savings (Top) | 4.50% | $450 | — |
| High-Yield Savings (Good) | 3.50% | $350 | −$100 |
| National Average | 0.39% | $39 | −$411 |
| Big Bank (Chase, BofA) | 0.01% | $1 | −$449 |
Based on $10,000 held for 12 months with no additional deposits or withdrawals.
Ideal For
Emergency funds (3–6 months expenses), short-term savings goals (1–3 years), down payment savings, cash buffers, and sinking funds for large purchases.
Not Ideal For
Daily spending (use checking), long-term wealth building (use investing), retirement savings (use 401(k)/IRA), or money you won't need for 5+ years.
Current Top Rates
Top HYSAs currently range from 3.30% to 5.00% APY. The Fed held rates at 3.50–3.75% in January 2026 after three cuts in late 2025. HYSA rates typically adjust within days to weeks of Fed moves.
Rates change frequently. Always verify current rates before opening an account. Some advertised rates require direct deposit or minimum balances.
| Bank | APY | Min. | Fee | Requirements / Notes |
|---|---|---|---|---|
| Varo | 5.00% | $0 | $0 | $1k+/mo direct deposit req.; 3.00% base; cap at $5k |
| Axos ONE | 4.21% | $0 | $0 | Bundle with checking; DD + balance req. |
| Climate First | 4.21% | $0 | $0 | No hoops; CDFI-certified bank |
| Newtek Bank | 4.20% | $0 | $0 | May have waitlist |
| Openbank | 4.09% | $500 | $0 | Santander digital subsidiary |
| SoFi | 4.00% | $0 | $0 | 3.30% base + 0.70% boost w/ DD or SoFi Plus |
| Barclays | 4.00% | $0 | $0 | No requirements; straightforward |
| Wells Fargo Platinum | 3.75% | $100 | $0 | Tiered: 0.25% under $5k, 3.75% at $5k+ |
| Marcus (Goldman) | 3.65% | $0 | $0 | No withdrawal limits |
| Ally Bank | 3.30% | $0 | $0 | Buckets feature, round-ups, strong app |
| Amex HYSA | 3.30% | $0 | $0 | No withdrawal limits, established brand |
Rates as of February 2026. APYs are variable and subject to change. Verify current rates at each bank's website.
HYSA vs. Alternatives
HYSAs offer the best combination of yield and instant liquidity, but several alternatives serve different needs. The right choice depends on your time horizon, access requirements, and tax situation.
| Option | Rates (Feb 2026) | Liquidity | Risk | Best For |
|---|---|---|---|---|
| High-Yield Savings | 3.3–5.0% | Instant | None (FDIC) | Emergency funds, short-term goals |
| Money Market | 3.0–4.5% | Instant | None (FDIC) | Check-writing access needed |
| CDs (1-Year) | 3.5–4.2% | Locked (penalty) | None (FDIC) | Lock in rate; money not needed |
| Treasury Bills | 4.0–4.5% | 1–2 days (secondary) | None | State tax-free interest |
| I Bonds | ~3.1% | 1-year lock | None | Inflation protection; $10k/yr limit |
Key Selection Criteria
| Factor | What to Look For | Red Flags |
|---|---|---|
| APY | Competitive rate (currently 3.5%+) | Below 3%, tiered with low base rate |
| Fees | $0 monthly — no reason to pay fees | Any monthly maintenance fee |
| Min. Deposit | $0 or low ($100–500) | $1,000+ minimum for advertised APY |
| FDIC/NCUA | Clearly stated, $250k per depositor | No insurance; unclear partner bank |
| Transfer Speed | 1–2 business days to external bank | 3+ day transfers; withdrawal limits |
Tax note: HYSA interest is taxable as ordinary income. You receive a 1099-INT if you earn $10+ in interest. At a 22% bracket, $400 in interest means ~$88 in federal tax. T-Bills are state-tax-free.
Rate History & Outlook
HYSA rates closely track the Federal Reserve's benchmark rate. Banks are generally quick to cut savings rates after Fed cuts but slower to raise them after hikes — an asymmetry that works against savers during rising-rate periods.
Fed Funds Rate vs. HYSA Rates (2020–2026)
| Period | Fed Rate | Typical HYSA | Context |
|---|---|---|---|
| 2020–2021 | 0.00–0.25% | 0.40–0.60% | COVID emergency cuts |
| Early 2022 | 0.25–0.50% | 0.50–0.75% | First hike since 2018 |
| End 2022 | 4.25–4.50% | 3.00–4.00% | Fastest hikes in 40 years |
| Mid 2023 (Peak) | 5.25–5.50% | 4.50–5.50% | Highest since 2007 |
| Sept 2024 | 4.75–5.00% | 4.25–5.00% | First cut since 2020 |
| Dec 2025 | 3.50–3.75% | 3.50–4.50% | Three 25bps cuts in late 2025 |
| Feb 2026 (Now) | 3.50–3.75% | 3.30–5.00% | Rate pause; 10-2 vote to hold |
Long-Term Historical Context
| Era | Savings Rate | Inflation | Real Return |
|---|---|---|---|
| 1980s | 8–12% | 5–13% | −1% to +3% |
| 1990s | 4–6% | 3–5% | +1% to +2% |
| 2000s | 2–5% | 2–4% | 0% to +1% |
| 2010s | 0.1–2% | 1–2% | −1% to 0% |
| 2020–2021 | 0.4–0.6% | 1–7% | −6% to −1% |
| 2023–2026 | 3.5–5.5% | 2.5–3.5% | +1% to +2% |
2026 outlook uncertain: FOMC minutes from January 2026 show officials divided — some favor further cuts if inflation continues falling, while others raised the possibility of rate increases if inflation persists. Markets currently expect rates to hold through mid-2026.
Sources
- 1.FDIC — National Rates and Rate Caps
- 2.Federal Reserve — FOMC Statements & Minutes
- 3.FRED (St. Louis Fed) — Federal Funds Effective Rate
- 4.FDIC — BankFind Suite (Verify FDIC Insurance)
- 5.Bankrate — Best High-Yield Savings Accounts
- 6.NerdWallet — Best High-Yield Savings Accounts
- 7.Bureau of Labor Statistics — Consumer Price Index
This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.