When are savings rates going to fall?
Market conditions and the federal-funds rate influence the interest rates that financial institutions offer on their savings products. The Federal Open Market Committee meets eight times a year to determine appropriate policy to manage the labor market, inflation and economic conditions. If the Federal Reserve lowers interest rates at its meeting, we can expect to see interest rates for savings, CDs and other interest-bearing accounts dip in response.
Should I have more than one high-interest savings account?
For some savers, a single savings account works just fine, while others find that having multiple accounts better suits their needs. There’s no one-size-fits-all recommendation; it ultimately comes down to personal preference and how easily you’re able to manage multiple accounts.
Some situations where you might consider having multiple high-yield savings accounts include:
- You have more than $250,000 in savings: FDIC insurance only covers deposits up to $250,000, so if you have more than that in a single account, you’re at risk of losing money in the event of a bank failure. Spreading out your savings across more than one bank can ensure you’re fully covered (though you might also want to consider whether you’re keeping too much in savings and if it’s worth it to invest some of those funds).
- You could be getting a higher APY elsewhere: If you are satisfied with your current bank but other institutions are paying higher APYs on their savings accounts, it might be worth opening another account to take advantage of the higher rate.
- To take advantage of other banks’ perks: It’s not uncommon for banks to run promotions to try to attract new clients, such as cash bonuses for opening a new account. If you don’t mind taking the time to sign up, you could earn some extra cash or other benefits by having multiple accounts.
- To easily track your savings goals: Some people like to have more than one account to keep their savings goals separate and easily track their progress. You might keep your emergency savings in one account and then savings for other expenses like vacations or bills in another, for example.
If you decide to open additional high-yield savings accounts, pay attention to the fees and minimum balance requirements that come with each account.
How much money should I keep in a savings account?
A good rule of thumb is to keep at least three to six months’ worth of living expenses in a savings account for emergencies, such as becoming unexpectedly unemployed or needing to pay for urgent repairs to your home. Beyond that, you can continue to add to your savings according to your needs and goals.
However, it’s also possible to keep too much money in a savings account—particularly if you exceed the $250,000 FDIC insurance limit in a single account. Having money in savings is important for emergencies when you need access to cash very suddenly. If that money is invested, you wouldn’t be able to access it until you sell those investments—and if the market happens to be down, you risk not having sufficient funds. Once you have a well-funded savings cushion, though, you should consider increasing the amount you put toward retirement or your taxable investment accounts. Your money generally grows faster when it’s invested compared to the funds you keep in a high-yield savings account.
What is the difference between a high-yield savings account and a traditional savings account?
Traditional savings accounts pay very little interest—typically less than 1%. This is below the average rate of inflation, which means your money actually loses value over time in these accounts.
It’s common to see these types of savings accounts offered at big financial institutions with a lot of bricks-and-mortar locations. There are benefits to keeping your money with these banks. If you have a branch near you, you can easily make in-person withdrawals or deposits. It can also be more convenient to open a savings account at the same institution you do the rest of your banking with, so you can easily transfer funds from checking to savings (or vice versa).
Many of the institutions that offer high-yield savings accounts are online banks with few or no physical branches, meaning you might have to do all your banking virtually. This can make it challenging to deposit or withdraw cash.
As long as your bank is FDIC-insured, your money is just as safe in a high-yield savings account as it is in a traditional savings account.
What is the highest-paying high-yield savings account today?
The highest APY available changes frequently and might come with some strings attached. For example, Varo offers an APY of 5.00%, but only on the first $5,000 of your balance. As of March 2026, several other accounts offer APYs of more than 4.00%, according to DepositAccounts.com. Keep in mind that, because interest rates fluctuate, the highest-paying accounts and yields available might change.
What are the fees associated with a high-yield savings account?
Fees on high-yield savings accounts can vary from bank to bank, so it’s important to compare your options before deciding where to keep your money. Many high-yield savings accounts have low or no fees, though some charge monthly fees or have minimum initial deposit requirements to open an account. You might also see accounts that only pay the highest APY if you keep your balance above a certain threshold.
Buy Side’s best-rated high-yield savings accounts charge little or no monthly fees, though Bread Savings does charge $5 for paper statements, while other fees on our list are waivable in certain cases.
Is it worth putting money into a high-yield savings account?
A high-yield savings account can be beneficial whether you want to save for a future goal, build an emergency fund or just prefer to keep cash available. Savings accounts afford you a safe and accessible place to stash your money while offering interest to keep the funds on deposit, and a high-yield savings account offers a higher rate than the national average. If you plan to keep any of your money in a savings account, it might make sense to look for one that has the highest APY in addition to the accessibility and features that matter most to you.
How to choose the best high-yield savings account
Your high-yield savings account comparison should include factors that matter most to you, in addition to APY.
What factors impact interest rates?
High-yield savings account rates are heavily influenced by the federal-funds rate, which is a benchmark set by the Federal Reserve. If the Federal Reserve raises its rate, banks often increase the yield they pay on savings. On the other hand, if the Federal Reserve cuts rates, as it did three times in 2025, from September through December, interest rates on financial products are likely to fall.
In addition to the federal-funds rate, business goals impact interest rates. Banks and credit unions might offer competitive yields to attract depositors. Financial institutions might also offer higher introductory rates for a certain amount of time to encourage savers to open new accounts. A financial institution usually sets its rates based on how much profit it wants to make on the difference between yields paid to depositors and interest earned from the loans it makes. For example, a bank might pay you 4.15% APY to keep your money in an account and lend those funds to a borrower at 8.99% APR.
Minimum deposit and balance requirements
Even though a higher yield is a strong incentive to choose a savings account, other factors to consider include minimum deposit and balance requirements.
- Minimum deposit: Review how much you need to open an account. Some high-yield savings accounts have no minimum deposit requirements, while others require $100 or more.
- Minimum balance: You might be required to maintain a minimum balance to avoid a monthly fee or to earn the advertised yield. It might not be the best high-yield savings account for your needs if you can’t meet the requirements.
Confirm that your bank deposits are protected by the Federal Deposit Insurance Corporation (FDIC). (Credit union deposits are protected by the National Credit Union Administration.)
Withdrawal limits and restrictions
Even though there’s no longer a regulatory requirement to limit certain withdrawals and transactions to six per month, some banks and credit unions impose restrictions. Check the account to determine whether a penalty accompanies withdrawals and transfers beyond a certain number.
Understand how the institution differentiates between withdrawals, transfers and other transactions. Some institutions might allow unlimited transfers between connected accounts but restrict the number of cash withdrawals.
