Key takeaways
- High-yield savings accounts continue offering strong APYs above 4 percent.
- Moody’s credit rating downgrades of the U.S. government and a handful of major banks may fuel a Federal Reserve decision to keep rates unchanged in June.
- At least one Fed official is leaning toward just one rate cut this year at this point in time.
It has become clear that annual percentage yields (APYs) are one of the few winners of today’s uncertain economy.
The U.S. economy hit another road bump in May as Moody’s Ratings downgraded the U.S. government’s credit rating from Aaa to Aa1, citing an increase in government debt and interest payment ratios to levels that are significantly higher than other similarly rated countries. It also downgraded five large U.S. banks by one notch, including Bank of America, JPMorgan Chase and Wells Fargo. These downgrades are expected to diminish investor sentiment, especially as it pertains to U.S. Treasury securities, which investors may now interpret as coming with increased risk.
But these macroeconomic headwinds may actually be yet more fodder for the Federal Reserve to leave its benchmark federal funds rate – currently at a range of 4.25-4.5 percent – unchanged during its June meeting, as most experts anticipate, with the added uncertainty. This means high-yield savings accounts (HYSAs) may continue to offer robust APYs for some time to come, even as they trend slightly downwards.
What are today’s best savings account rates?
HYSAs continue to offer higher-than-average returns compared with what they were offering just ten years ago. That’s good news for savers, as robust yields mean your money will grow faster in a HYSA over time. The most competitive yields in today’s market hover above 4 percent APY.
This week’s top-notch yield is offered by Openbank, the digital arm of Santander Bank. The only downside is that you’ll need $500 to open an account. If you don’t have that much cash on hand, you could consider Bread Savings, which continues to offer a robust APY and a much lower minimum opening deposit.
Note: Annual percentage yields (APYs) are as of May 23, 2025. APYs for some products may vary by region.
Experts don’t anticipate a rate cut during the Federal Reserve’s June meeting
The Federal Reserve‘s June Federal Open Market Committee meeting is quickly approaching — slated for June 17 and 18 — but the majority of experts don’t anticipate the central bank will cut rates come mid-June.
In fact, at least one Fed official, Atlanta Fed President Raphael Bostic, signaled in a CNBC interview that the Fed will “have to wait three to six months” to see how the economy shakes out following the U.S. government’s credit downgrade by Moody’s. He also mentioned that he’s “leaning much more into one cut this year.”
If there’s no rate cut in June, you can expect HYSA yields to stay relatively put, albeit you may still see slight ticks downwards, as has been the case over the past month. Just about a month ago, the top rate was 4.45 percent APY, which has now fallen to 4.40 percent.
The Fed is in a holding pattern until there are signs of a deteriorating job market or something else in the economic data that would compel them to cut interest rates. Savers will continue to enjoy attractive returns that are outpacing the rate of inflation on high-yield savings accounts.
— Greg McBride, CFA | Bankrate Chief Financial Analyst
Is it still a good time to open a high-yield savings account?
Yes — rates are still relatively high compared with those in recent years, making now a smart time to take advantage of better returns on your savings.
Just keep an eye on rate changes, as savings accounts offer variable APYs, which are subject to change at any time. The Fed isn’t expected to cut rates, but if it does during its June meeting, be prepared to expect APYs at many banks and credit unions to tick downwards.
What to look for in a high-yield savings account
- A top rate: A high APY will help your money grow faster. Top APYs are currently above 4 percent, with the top yield currently at 4.40 percent APY.
- No monthly fees: Even low monthly maintenance fees can cut into your savings over time. Accounts that come without fees — effectively free — will help maximize the cash you contribute to your savings account.
- Low or no minimum deposit: This only really matters when first opening an account, but if you don’t have a lot of money on hand at the start, you’ll want to search for an account that has a low (around $100 or so) or no minimum deposit requirement.
- High or no withdrawal limit: Some banks are still limiting withdrawals to just six, even though the Federal Reserve has removed its rule that used to require this. For those months that you need to dip into your savings a bit more, having an account without a withdrawal limit will mean you won’t shell out money in extra fees.
Bottom line
Despite economic headwinds, continuing uncertainty surrounding tariffs and recent credit downgrades, HYSAs continue to offer attractive returns above 4 percent APY, which continue to outpace inflation. Now remains an excellent time to open or maintain a HYSA, especially those with no fees, reasonable minimum deposits and flexible withdrawal options. While rates may gradually decline, experts anticipate the Federal Reserve will maintain current rates in the near term, preserving these favorable savings conditions for the immediate future.
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