Earn up to 5.00% APY on the best high-yield savings account on Oct. 16, 2025

The best high-yield savings accounts on October 16, 2025: Earn up to 5.00% APY

Varo Money currently leads the pack with an impressive 5.00% rate on its high-yield savings account, setting the bar for the industry. Axos Bank, Presidential Bank, and SoFi also offer accounts with highly competitive yields.

Fortune continuously monitors the top rates offered by leading U.S. financial institutions. Check out the top savings account rates on the market:

FDIC average national deposit rates: January 2020 to present

Right now, the national average savings rate hovers at 0.40%, marking a noticeable decrease from the 0.47% rate recorded in March 2024. This downward trend correlated closely with the Federal Reserve’s recent rate reductions.

Savings account news in 2025

The Federal Reserve’s interest rate decisions have a major impact on savings accounts. When the Fed increases its benchmark rate, banks typically respond by raising the interest offered on savings accounts to maintain competitiveness. Conversely, when the Fed lowers rates, savings account yields tend to decrease.

However, this relationship isn’t always so straightforward. While changes frequently follow in the wake of Fed meetings, which are held approximately eight times per year, some banks adjust rates more often depending on their competitive positioning or in response to unexpected market developments.

The Fed made its first cut of 2025 at its September meeting. With meetings slated for October and December, further cuts to the federal funds rate are possible this year. The next FOMC meeting is scheduled for Oct. 28-29.

Here’s what you get with a high-yield savings account

High-yield savings accounts typically provide rates that are 10 to 20 times higher than their traditional counterparts. For instance, while the national average savings rate stands at 0.40%, many high-yield accounts offer rates exceeding 4%.

Traditional accounts often provide physical branch access but with lower rates, while high-yield accounts are typically offered by online banks and feature higher rates but limited in-person services.

Consider opening a high-yield savings account for these benefits:

• Significantly higher interest rates compared to traditional savings accounts
• Often free from minimum balance requirements or monthly fees
• Ideal for emergency funds or short-term savings goals
• FDIC-insured, providing the same protection as traditional banks

When looking for a new savings account, interest rates aren’t the only factor to consider. Make sure you also avoid accounts with monthly maintenance fees, and look into how hard it will be to access your funds. You want to ensure you can easily make withdrawals or transfers when necessary—preferably without any pesky foreign ATM fees.