Key takeaways
- The inflation rate for April rose to 2.3 percent, according to last week’s CPI release. That’s slightly less that what economists expected by 0.1-percentage point. The margin between inflation and the top-yielding savings account is now slightly wider, compared with the inflation rate in March of 2.4 percent.
- The top savings APY, as monitored by Bankrate, has outpaced inflation for 25 consecutive months.
- The top-yielding savings account rate holds steady this week at 4.40 percent APY, available from Openbank.
There were clearer skies in last week’s market as the Standard & Poor’s 500-Stock Market Index rallied 5.3 percent from the previous week, rising above the clouds of tariff-based stock sell-offs from early April. Credit that, and news of a slightly better inflation rate, to help the U.S. stock market recover from its losses over the past few months to a positive level year-to-date; a welcome sign for both investors and savers.
On Tuesday, May 13, the Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose to 2.3 percent on an annual basis for April. That’s about 0.1-percentage point less than what market analysts had predicted, and 0.1-percentage point less than March’s annual rate of 2.4 percent. The April CPI widens the gap – albeit slightly – between inflation and the highest yielding savings account, currently at 4.40 percent annual percentage yield (APY), from among the 120 banks monitored by Bankrate’s editorial staff.
Although inflation remains a challenge for many Americans, and consumer sentiment continues to hit record lows, interest rates at many banks, specifically online-only banks, and credit unions continue to outpace the rate of inflation; the top savings yield monitored by Bankrate has done so for more than two years now.
If the money in your savings account doesn’t keep up with inflation, it will lose purchasing power. That means it won’t buy as much in the future. For now, the Federal Reserve continues to hold its benchmark federal funds rate steady at a range of 4.25-4.5 percent, which continues to benefit savers. Why? Because an unchanged federal funds rate could prompt some banks to keep their APYs high, in some cases well above 4 percent.
We’re in a position now where the Federal Reserve is less likely to cut rates in the near term.
— Stephen Kates, CFP, Financial Analyst | Bankrate
What are today’s best savings accounts and rates?
It’s not difficult right now to find APYs above 4 percent on high-yield savings accounts, money market accounts and certificates of deposit (CDs).
Currently, the top savings account rate is 4.40 percent APY, and it’s offered by Openbank, with a minimum opening deposit of $500. Launched in October 2024, Openbank is the digital arm of Santander Bank. And there are other comparable yields available at other competitive online-only banks.
The current top APYs for high-yield savings accounts are as follows:
Note: Annual percentage yields (APYs) shown are as of May 16, 2025. APYs for some products may vary by region.
Bankrate’s take:
A high-yield savings account can be a safe place to earn interest on your money while keeping it easily accessible for emergencies or other expenses. In addition to a high APY, the best high-yield savings accounts don’t charge fees and have low minimum deposit requirements. The accounts listed above are Bankrate’s highest-rated savings accounts from FDIC banks or NCUA credit unions.
What does the Fed’s holding pattern mean for high-yield savings accounts?
Outside the current rate cycle, the top savings account yield hasn’t had an APY this high in more than a decade. As long as the Fed keeps rates at the same level and inflation doesn’t rise by too much, this trend should continue.
“Despite dropping slightly over the last year, savings yields are still near the highest they have been in years,” Kates says. “Savers and investors can take advantage of relatively high yielding savings products without having to worry about the risk and volatility of the markets or the lock-ups of long-term bonds, CDs or annuities.”
This means that savings account yields should generally stay near or close to where they are currently.
Banks can react to Fed interest rate moves by increasing their APYs when the Fed hikes rates, or they lower APYs when the Fed cuts rates. (Banks can also change yields for other reasons, such as a need for deposits or competitive reasons.) Because the Fed has kept its benchmark federal fund rate steady at a range of 4.25-4.5 percent in 2025, savers are likely to see continued stability in APYs, at least until the next Fed meeting on June 17-18.
How long the Fed will maintain its current holding pattern is uncertain, and officials could adjust rates in the future based on macroeconomic conditions. The Trump administration’s tariffs could spur “a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” Federal Reserve Chairman Jerome Powell said at a press conference earlier this month.
While rates are unchanged for now, most economists are projecting Fed decreases later this year. However, depending on how macroeconomic conditions change, rates could go down further or faster than currently predicted, or they could actually even increase later this year.
— Adam Stockton, head of retail deposits and lending | Curinos
Whether rates change or remain stable, savers should make decisions based on their own unique situations. “Broadly, consumers should think less about predicting or timing the market and more about what will meet their needs today,” Stockton says. “It is also important to revisit your goals regularly and make sure that your banking still meets your needs.”
Are there savings accounts that earn above a 5 percent APY?
While no widely available savings account monitored by Bankrate’s editorial staff earns an APY at 5 percent or above, there are some financial institutions — often credit unions — that offer APYs at such a rate. These are commonly promotional offers that earn a higher APY on a limited portion of your balance. What’s more, membership in many credit unions is limited to those who live or work in select geographical areas and/or professions.
Here are some examples of savings accounts with APYs of 5 percent or higher, effective as of May 16:
- Community Financial Credit Union: Its High Yield Savings account earns a 10 percent APY on your first $1,000. Balances over that amount earn 0.10 percent APY. Those eligible for membership in the credit union include anyone who resides, works or attends school in the state of Michigan.
- Apple Bank: Apple’s SmartStart Savings account is open to New York or New Jersey residents aged six through 25, and it earns 6 percent APY on balances from $1.01 to $10,000. Higher balances of up to $20,000 earn an APY between 3.38 percent and 6 percent.
- BECU (Boeing Employees’ Credit Union): BECU’s Member Advantage Savings account earns 5.64 percent APY on the first $500 of your balance. BECU Membership is open to those who live, work, worship or attend school in Washington. Those who live in select counties in Oregon or Idaho are also eligible, as well as members of partner associations.
While they’re all offered by federally insured deposit institutions, some of the savings accounts listed above aren’t from banks or credit unions that Bankrate regularly monitors. However, they’re all from federally insured institutions. When opening a deposit account, it’s important to make sure it’s covered by federal deposit insurance.
How much can inflation cost you?
Many major banks and credit unions offer savings accounts with APYs ranging between 0.01-0.1 percent APY. Keeping your savings stashed in such a low-yielding savings account that earns a paltry-to-nil APY is detrimental to your ability to grow your savings, much less the purchasing power of your money. Consider these two factors:
- Inflation is your money’s enemy: It might feel good to have money saved up, but if that money isn’t staying ahead of inflation, or trying to keep pace with it, then you’re losing purchasing power. Consider, for example, that you saved $1,000 in April 2020, which buys $1,000 worth of goods and services at that time. But, if you wanted to buy those same goods and services in April 2025, you’d need to spend $1,251, as a result of inflation. Keeping your money stashed in a savings account with an APY well below the rate of inflation ends up eroding your savings.
- Big banks vs. online-only banks: A standard savings account at a large, federally insured traditional brick-and-mortar bank typically yields between 0.01-0.1 percent APY. But you can easily get a higher yield — 3.6 percent APY, for example — at a federally insured online-only bank. The difference between $1,000 at 3.6 percent APY, and 0.01 percent APY over five years, is $193.
Bottom line
The Fed continues to keep rates unchanged amidst political pressure to lower them. Despite such pressures, savers continue to benefit from the Federal Reserve maintaining its benchmark federal funds rate at a range of 4.25-4.5 percent by holding their money in a high-yield savings account that earns above 4 percent APY. However, if your current savings account earns a lackluster yield well below the current rate of inflation of 2.3 percent, then it’s wise to consider now a high-yield savings account that helps you earn more in interest.
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