Business
High-Yield Savings Accounts Surge Amid Economic Uncertainty
High-yield savings accounts continue to attract attention as they offer annual percentage yields (APYs) that are much higher than traditional savings accounts. As of August 28, 2025, some of the best savings accounts feature rates exceeding 4%, with a few nearing the 5.00% mark.
Analysts attribute this trend to persistent inflation and a cautious economic outlook in the U.S. The Federal Reserve has held off on cutting rates recently, which may help maintain the competitive APYs on savings accounts for now.
Fortune, in collaboration with banking experts at Curinos, released a current overview of the highest savings account rates in the nation. Leading the pack is Gainbridge, offering an impressive 5.00% rate on their high-yield savings account.
Other competitive options include Betterment and Presidential Bank, as these institutions strive to attract savers with attractive yields. The national average savings rate currently stands at only 0.39%, down from 0.47% just five months prior due to the Fed’s interest rate cuts.
The Federal Reserve’s decisions significantly influence savings account rates. Typically, when the Fed raises rates, banks follow suit by increasing their savings account yields to stay competitive. However, the opposite is also true when the Fed cuts rates.
In the current financial climate, it is expected that savings account rates will remain stable for the foreseeable future. The most recent cut occurred in December 2024, with the next Federal Open Market Committee (FOMC) meeting scheduled for September 16-17, 2025.
High-yield savings accounts offer substantial advantages over traditional accounts, including significantly higher rates, although they are typically online-only and may lack in-person service options.
When evaluating a high-yield savings account, consider fees, access to funds, and withdrawal limits. Many banks set a cap on withdrawals at six per statement cycle, which can affect your ability to access your savings.
Moving your money to take advantage of better rates can lead to higher earnings. However, it’s important to review the terms, including minimum balance requirements.
Funds in an FDIC- or NCUA-insured institution remain safe up to the insurance limit, although it’s crucial to keep inflation in mind, as it could potentially decrease the overall value of savings over time.
This report was produced by Glen Luke Flanagan, editor at Fortune, who has a background in personal finance and has updated this information from Cassie Bottorff’s series on daily savings rates.
