Last week, Federal Reserve officials decided to hold interest rates steady, keeping the federal funds rate at a target range of 4.25-4.5 percent, which is the highest since 2007. Interest rates on loans and deposit accounts tend to move in response to this key rate, so while an elevated rate may cause headaches for borrowers, anyone with a high-yield savings account is enjoying an attractive, inflation-beating return.

The Fed’s current holding pattern has spanned four rate-setting meetings in 2025, after officials cut the rate three times in late 2024. High-yield savings account rates decreased due to those rate cuts, but overall, they’ve remained somewhat stable in recent months. The best APY was 4.75 percent at the start of 2025, while now it’s a bit lower at 4.30 percent.

Here’s what’s going on in today’s market as it pertains to high-yield savings accounts.

What are today’s best savings account rates?

As of late, several banks are tied for the leading high-yield savings account rate, among banks monitored by Bankrate’s editorial staff. (Higher yields may be offered by banks outside of this scope.) As a saver, that gives you multiple options for securing a top-notch rate, each of which requires a different minimum opening deposit.

Note: Annual percentage yields (APYs) are as of June 23, 2025. APYs for some products may vary by region.

The latest news from the Federal Reserve

Along with the Fed’s rate decision on June 18, data was released including a projected median of two rate cuts this year, based on input from the 19 Fed officials who participated in the FOMC meeting. Some of those officials don’t think the Fed will cut rates at all this year.

In a press conference following the rate-setting meeting, Fed Chair Jerome Powell cautioned that officials’ projections could change as new economic data comes in. “Changes to trade, immigration, fiscal, and regulatory policies continue to evolve, and their effects on the economy remain uncertain,” he said, citing the Fed’s dual-mandate goals of maximum employment and price stability.

Benefits of a high-yield savings account in the current rate environment

A federal funds rate that remains elevated for longer could spell continued stability for rates on high-yield savings accounts, certificates of deposit (CDs) and money market accounts. Savers may benefit from higher rates for longer as they build up their emergency funds or save for other goals.

With APYs north of 4 percent, money in a competitive deposit account is earning a rate twice that of inflation, so your money is retaining purchasing power.

“Most financial institutions offering high-yield savings products are wanting to maintain competitive rates and secure their positions in the market, which is a good thing for consumers wanting a safe place for liquid returns.”

— Alana LevineChief Revenue Officer | Fintel Connect

Depending on your goals and needs, it might be worth also looking into different types of deposit accounts, Levine says. “In different rate environments, especially if they would start to fluctuate, there may be alternative vehicles to consider, such as CDs or money market accounts with benefits like locked-in rates or broader banking functions.”

Levine advises consumers should also consider other factors in a bank account, such as the minimum balance requirement and whether rates are tiered or only part of a promotional period.

Bankrate’s Goldberg agrees that there are some important factors to consider in a bank account in addition to the rate. “A competitive APY is very important,” he says. “But a combination of the features you’re looking for in a bank, the reputation of the bank and a competitive yield are all things to consider.”

Bottom line

With the Fed continuing to hold rates at their current level, high-yield savings accounts are having their moment in the sun, thanks to APYs at nearly twice the rate of inflation. Finding the right savings account ensures you’re reaping the benefits of an attractive yield as you save for emergencies or life goals.