Inquiry into the customary interest rate for savings deposits
🚀 Get more bang for your buck with high-yield savings accounts!
Gone are the days of settling for paltry interest rates. Aim high and look for an annual percentage yield (APY) that outdoes the national average by miles. While the national average savings APY hovers around 0.41%, high-yield savings accounts from online banks can offer up to 5.00% APY - that's a whopping 10-20 times more than traditional accounts!
Top Performers
Leading the pack are Varo Bank and Fitness Bank with a striking 5.00% APY[3]. BrioDirect offers a competitive 4.45% APY (minimum $5,000 deposit)[2], while Axos Bank comes in close with 4.66% APY[3].
Online Savings Advantage
High-yield savings accounts are typically online-based, FDIC-insured, and often waive monthly fees and minimum balance requirements. For example, consider Openbank's offering of 4.40% APY with a minimum deposit of $500[2][4].
Flexible Funds
Savings rates are on an upswing, thanks to the Federal Reserve’s benchmark rate of 4.25%–4.50%, unchanged since December 2024[3][4]. The next Fed meeting is slated for May 6–7, 2025[4]. So, now's the perfect time to stash your emergency funds or short-term savings in a high-yield account and reap the rewards.
High-yield savings accounts may not be suitable for long-term investments, but for quick access funds that need a little extra boost, they're a solid choice[4][5]. Before you pick an account, be sure to compare online banks with traditional banks to ensure you're getting the most bang for your buck!
Calculate the difference between the APY at a traditional bank and an online bank to see what higher-interest earnings could mean for your savings goals. The power of compounding has the potential to help your interest earn more interest over time!
- To maximize your savings earnings, seek out savings accounts with APYs that surpass the national average significantly, such as the 5.00% APY offered by Varo Bank and Fitness Bank.
- While comparing high-yield savings accounts, industries like finance, personal-finance, and banking-and-insurance have various players, including BrioDirect, Axos Bank, and Openbank, each with competitive APYs.
- In the industry, leading online banks waive monthly fees, maintain minimum balance requirements, and offer high APYs, making them an attractive option for personal-finance management.
- Be aware that while high-yield savings accounts are ideal for quick access funds, they might not be suitable for long-term investments. Conduct a comparison between online and traditional banks to ensure you are meeting your savings goals with the highest APY possible.
- The proper management of your savings account, including high-yield savings accounts, is vital in finance, as the power of compounding can help your interest earn more interest over time, effectively growing your savings.
