No single bank has the best rate for everyone, because rates change weekly and depend on the account type you choose

The bank offering the highest savings rate today may not offer it next week. Interest rates on savings accounts move constantly—sometimes daily—because they follow the federal funds rate set by the Federal Reserve. When the Fed raises or lowers rates, banks adjust their savings rates within days or weeks, not months.

The highest rates are almost never at the big national banks (Chase, Bank of America, Wells Fargo). Those banks typically offer 0.01% to 0.05% on regular savings accounts. The highest rates come from online banks and credit unions, which have lower overhead costs and pass that savings to depositors. Online banks like Marcus, Ally, and American Express Personal Savings have historically offered rates 10 to 20 times higher than national chains, though the exact rate shifts constantly.

The second factor is account type. A high-yield savings account (HYSA) pays more than a regular savings account at the same bank. A money market account may pay differently than an HYSA. A certificate of deposit (CD) locks your money away for a set term but often pays more. You need to decide what you're saving for—money you might need in three months, or money you won't touch for two years—before comparing rates.

Key Takeaways

  • Online banks and credit unions consistently offer the highest savings rates because they have lower operating costs than brick-and-mortar banks.
  • Savings rates change weekly or even daily, so the highest rate today may be different in two weeks—check current rates before opening an account.
  • High-yield savings accounts (HYSAs) pay significantly more than regular savings accounts, but your money stays accessible without penalty.
  • Certificates of deposit (CDs) lock your money for a set period (three months to five years) and often pay more than HYSAs, but you pay a penalty if you withdraw early.
  • Credit unions sometimes offer rates competitive with online banks, and membership may come with other benefits like lower loan rates.

Where to find current rates across multiple banks at once

Checking each bank's website individually takes hours. Instead, use a rate comparison tool that updates daily or weekly. Bankrate, DepositAccounts, and DepositAccounts.com all list current rates from dozens of banks and credit unions in one place. You can filter by account type (HYSA, money market, CD) and term length (for CDs), then sort by rate from highest to lowest.

These sites don't charge you to use them—the banks pay them for referrals. When you click through to open an account, the bank knows you came from the comparison site, but you pay nothing extra. The comparison sites update rates multiple times per week, though some banks change rates more frequently than the sites refresh, so always check the bank's own website for the absolute current rate before you deposit money.

Online banks that have historically offered the highest rates

Marcus (owned by Goldman Sachs), Ally Bank, and American Express Personal Savings have competed for the top HYSA rates for the past three years. At various points, each has held the highest rate. As of now, rates vary—Marcus may be at 4.50%, Ally at 4.35%, American Express at 4.40%—but these numbers shift. The point is not which one is highest today, but that these three banks are consistently in the top tier.

Other online banks worth checking: Wealthfront Cash Account, Vanguard Cash Management, and Discover Bank. Discover is technically an online division of a larger bank, but it operates independently and has historically offered competitive rates. None of these banks have physical branches, so you deposit and withdraw money by transfer from another bank account or by mailing a check.

Online banks have no monthly fees on savings accounts, no minimum balance requirements (or very low ones, like $0.01), and no penalties for moving money out. The trade-off is that you cannot walk into a branch or talk to someone in person—everything is done online or by phone.

Credit unions and their savings rates

Credit unions are member-owned financial institutions, not for-profit. Some credit unions offer savings rates that match or beat online banks. Navy Federal Credit Union, Connexus Credit Union, and Pentagon Federal Credit Union have offered competitive rates in recent years. The catch: you must be a member to open an account, and membership rules vary. Navy Federal requires military service or a military family connection. Connexus is open to people in certain states or professions. Pentagon Federal is open to federal employees and their families, plus some others.

If you already belong to a credit union, ask them what rate they offer on savings accounts. Many credit unions offer lower rates than online banks, but some offer higher ones. Credit unions also sometimes offer perks like lower loan rates or fee waivers that offset a slightly lower savings rate.

Certificates of deposit (CDs) versus high-yield savings accounts

A CD locks your money for a set period—typically three months, six months, one year, two years, or five years. In exchange, the bank pays you a higher rate than a HYSA. A one-year CD might pay 4.75% while a HYSA pays 4.40%. The longer the term, the higher the rate usually goes.

The downside: if you withdraw the money before the term ends, you pay an early withdrawal penalty. The penalty is usually three to six months of interest, though it varies by bank and term length. If you need the money in eight months but locked it in a one-year CD, you lose money compared to keeping it in an HYSA.

CDs make sense if you know you won't need the money for a specific period and want to lock in a rate before rates fall. HYSAs make sense if you might need the money within a year or if you want flexibility without penalty.

Money market accounts and their rates

A money market account is a hybrid between a savings account and a checking account. It usually pays more than a regular savings account but less than an HYSA. Some money market accounts come with a debit card or check-writing privileges, which savings accounts typically don't offer.

Money market accounts are useful if you want some flexibility to spend the money (via check or card) while still earning interest. However, they often have higher minimum balance requirements than HYSAs—sometimes $2,500 or more—and may charge monthly fees if you fall below that minimum. Compare the rate, the minimum balance, and any fees before opening one. An HYSA with no minimum and no fees usually beats a money market account with a high minimum, even if the money market rate is slightly higher.

How to decide which account type fits your situation

Start by asking: when will I need this money? If the answer is "within the next year," use a high-yield savings account. You get a competitive rate and can withdraw without penalty. If the answer is "not for two to five years," a CD locks in a higher rate and removes the temptation to spend it. If you want to earn interest but also write checks or use a debit card, a money market account bridges the gap—though check the fees and minimum balance first.

Next, ask: how much am I depositing? If it's under $2,500, avoid money market accounts with high minimums. If it's over $25,000, some banks offer tiered rates that pay more on larger balances, so compare those too. Finally, ask: do I already have a bank I trust? If you're happy with your checking account at a credit union, opening a savings account there may be simpler than managing accounts at two different institutions, even if the rate is slightly lower.

Frequently Asked Questions

Do I need to move my money to a new bank to get a better rate?

Yes, in most cases. Your current bank's savings rate is probably 0.01% to 0.05%, and moving to an online bank or credit union will give you a rate 50 to 100 times higher. The transfer takes three to five business days and costs nothing. You can keep your checking account where it is and open a savings account elsewhere.

What happens to my interest rate if the Federal Reserve lowers rates?

Your rate will drop, usually within one to two weeks. Banks lower savings rates quickly when the Fed cuts rates because they're paying less to borrow money themselves. The rate you see when you open the account is not locked in—it's variable and can change anytime. CDs are the exception: once you lock in a CD rate, it stays the same for the entire term.

Is my money safe in an online bank?

Yes, as long as the bank is FDIC-insured. FDIC insurance protects up to $250,000 per account type per bank. Most online banks display their FDIC insurance status on their website. Online banks are regulated the same way as brick-and-mortar banks—the lack of physical branches doesn't make them riskier.

Can I open accounts at multiple banks to earn higher rates on more money?

Yes. Each bank's FDIC insurance covers up to $250,000 per account type. If you have $500,000 to save, you could put $250,000 in a HYSA at Bank A and $250,000 in a HYSA at Bank B, and both amounts would be fully insured. You'd also earn the highest rate at each bank instead of settling for one bank's rate on all your money.

Should I move my money every time a different bank offers a higher rate?

No. The difference between a 4.50% rate and a 4.35% rate is small—on $10,000, it's about $15 per year. The time and effort to move money between banks probably isn't worth $15. Move your money if the rate difference is significant (0.50% or more) or if you're opening a new account anyway. Otherwise, stay put.