Two banks now pay a record-high rate of 5.07% APY for nationally-available savings accounts. That's up from one bank yesterday that offered that rate, which is the highest annual percentage yield (APY) seen for a savings account since the Federal Reserve began raising interest rates 14 months ago.
You'll need an ongoing balance of at least $1,000 to get that rate. If you've got less, you can still get a stellar rate of 5.01% with a $10 minimum deposit and no ongoing balance requirement.
Several banks in our daily ranking of the best high-yield savings accounts have bumped up rates this week, now giving you five options that pay 5.00% APY or better, with 14 more that offer at least 4.75% APY.
Top National Savings Rates by Ongoing Balance Requirement
|No Ongoing Balance Requirement||Rate||Minimum Initial Deposit||Minimum Ongoing Balance|
|Salem Five Direct||5.01% APY||$10||Any amount|
|Newtek Bank||5.00% APY||$0||Any amount|
|My Banking Direct||5.00% APY||$500||$1|
|$1,000-$4,999 Ongoing Balance Requirement||Rate||Minimum Initial Deposit||Minimum Ongoing Balance|
|CFG Bank||5.07% APY||$1,000||$1,000|
|Ivy Bank||4.80% APY||$2,500||$2,500|
|$5,000+ Ongoing Balance Requirement||Rate||Minimum Initial Deposit||Minimum Ongoing Balance|
|CIT Bank||4.85% APY||$100||$5,000|
Shopping around for a top rate on a savings account enables you to earn 12 times the national average, which is currently 0.40% APY. And if you do your primary banking with one of the nation's largest banks, its savings account rate could be significantly lower than that, even close to zero. (Big banks don't need to compete as much for deposits as smaller institutions do, so they often offer low yields.) So it's a smart money move to shop around for a separate high-yield account.
You may notice that many of the best-paying institutions for high-yield savings accounts are online banks. But most of these are simply online divisions of established brick-and-mortar banks (sometimes branded with a different name).
Even when you encounter an internet-only bank, it likely carries the same federal deposit insurance that physical banks do. If you see the Federal Deposit Insurance Corp. (FDIC) logo or the words "FDIC Member" on a bank's website, it means up to $250,000 of your deposits—per person and per institution—are federally insured should the institution fail, regardless of bank size or whether it's online-only or has physical branches.
If you've never held savings at a different bank than where you have your checking account, you might worry it'll be inconvenient to hold funds at two different banks. While transfers between banks usually take one to three days, if you don't think you'll need to move money quickly, online banking makes the process incredibly easy.
The "top rates" we quote are the highest nationally available rates Investopedia has identified in its daily rate research on banks and credit unions that offer nationwide high-yield accounts. This is in stark contrast to the FDIC's published national average, which includes all banks offering a savings account, including many extremely large banks that pay almost no interest. Thus, the national average rate is always quite low, while the top rates you can unearth by shopping around are typically five, 10, or even 15 times higher.
Where Are Savings Account Rates Headed?
Since March 2022, the Federal Reserve has aggressively raised the federal funds rate in an effort to combat rising inflation that eventually reached a 40-year high in June last year. It implemented seven hikes in 2022 totaling 4.25%, while this year it has added an additional three increases of 0.25% each.
Today's leading rate of 5.07% APY is the highest level we've seen since the Fed's rate hikes began, and though our tracking of the nation's top rate goes back to 2020, average savings account rates are at their highest level since at least 2009, when the FDIC began publishing national rate averages. In fact, it's expected savings rates are at their highest level since 2007, which was the the last time the federal funds rate was as high as it is now.
But the peak level we'll reach on savings account rates could be coming soon. That's because the Federal Reserve is expected to pause its interest rate hikes in the coming months. When exactly that happens, however, is very much up in the air right now, with Fed members voicing different opinions on whether another hike is needed. The next rate announcement from the Fed committee will be made June 14.
When the Fed does cease its rate hikes, returns on savings accounts will plateau. And when the Fed ultimately lowers the federal funds rate, something that could happen this year, savings account rates will drop as well.
That makes now an excellent time to consider moving a portion of your savings into one of the top-paying nationwide certificates of deposit (CDs) if you can manage without the money for a period of time. Buying a CD would allow you to lock in a guaranteed rate at today's record levels for months or years into the future. But because there are penalties for withdrawing money early from a CD, you should only invest money you're not going to need during the CD term.
Top Savings and CD Rates vs. National Average Rates
|Account Type||Today's Top Nationally Available Rate||National Average Across All FDIC Banks|
|High-yield savings account||5.07% APY||0.40% APY|
|3-month CD||5.15% APY||0.62% APY|
|6-month CD||5.50% APY||1.19% APY|
|1-year CD||5.28% APY||1.59% APY|
|2-year CD||5.25% APY||1.45% APY|
|3-year CD||5.13% APY||1.36% APY|
|4-year CD||4.73% APY||1.30% APY|
|5-year CD||4.68% APY||1.37% APY|
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rates of almost 100 banks and credit unions that offer savings accounts to customers nationwide, using that data to determine daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the savings account's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best high-yield savings accounts, read our full methodology.
Federal Deposit Insurance Corporation. National Rates and Rate Caps.
- U.S. Bureau of Labor Statistics. CPI for All Urban Consumers.
Federal Reserve. "Open Market Operations".