Is Now the Right Time to Put Your Money in a Savings Account?
In 2024, the Federal Reserve made the decision to cut the federal funds rate, a trend that continued throughout 2025. As a result, deposit interest rates have fallen from their historic highs. Despite this, there are still high-yield savings accounts offering above 4% APY. If you’re considering putting your money into a savings account, now might be the right time. Here’s a breakdown of where to find the best rates available today.
Although savings interest rates are higher than they have been in the past, the national average rate for savings accounts is currently just 0.39%, according to the FDIC. However, there are top high-yield savings accounts that offer more than 10 times the national average.
As of January 23, 2026, some of the highest savings account rates available from our partners include a 4% APY offered by SoFi*, Barclays, and Valley Direct.
It’s important to shop around before opening a savings account, as interest rates can vary widely. Online banks are a great place to start, as they operate exclusively online and can offer high deposit rates and low fees due to reduced overhead costs.
Credit unions are another option for finding savings accounts with rates ranging between 4% and 5% APY. Credit unions are not-for-profit financial cooperatives known for providing competitive rates and fewer fees, though some may have membership requirements.
Savings accounts are considered one of the safest places to keep your money, as they are insured by the FDIC (or NCUA for credit unions) up to $250,000 in case of a financial institution failure. Additionally, savings accounts are not subject to market fluctuations.
However, it’s important to note that a savings account may not always offer the highest returns compared to investing in the market. For long-term savings goals like retirement, investing in higher risk market investments such as stocks, index funds, and mutual funds may be more beneficial.
On the other hand, for short-term goals like a down payment on a home, vacation, or emergency fund, a high-yield savings account is a great option. These accounts offer easy access to your money, unlike money market accounts and certificates of deposit which may have restrictions on withdrawals.
If you’re interested in exploring high-yield savings accounts, consider checking out partners like SoFi*, Barclays, and Valley Direct for competitive rates. Remember to compare rates and fees before making a decision on where to open your savings account.
*Earn up to 4% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 1/31/26. Rates are variable and subject to change. Terms apply. Visit sofi.com/banking#2 for more information. SoFi Bank, N.A. Member FDIC.
