The banks and online platforms offering the highest APY today

The highest APY savings accounts are almost always at online banks and credit unions, not at brick-and-mortar banks. As of early 2025, online savings accounts regularly offer APY rates between 4.5% and 5.35%, while traditional banks typically offer 0.01% to 0.5%. The exact highest rate changes weekly because banks adjust their rates in response to Federal Reserve decisions and competition.

Online banks can offer higher rates because they have lower overhead costs — no physical branches, fewer staff, lower rent. They pass those savings to depositors through higher interest rates. Credit unions sometimes match or exceed online bank rates, especially if you are a member of a large credit union network.

The specific banks offering the highest rates shift constantly. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank have historically held top positions, but you should check current rates directly with each institution before opening an account. Rate comparison sites like Bankrate, DepositAccounts, and DepositRate update daily and let you sort by APY.

Key Takeaways

  • Online banks and credit unions consistently offer APY rates 4% to 5% higher than traditional banks because they have lower operating costs.
  • The highest APY changes weekly, so the bank in first place today may not be in first place next week.
  • You can compare current rates across dozens of institutions on Bankrate, DepositAccounts, or DepositRate without opening an account.
  • FDIC insurance covers up to $250,000 per account at banks, and NCUA insurance covers the same amount at credit unions, regardless of APY.
  • A 0.5% difference in APY on $10,000 means $50 per year in additional interest, so comparing rates before you deposit is worth the five minutes it takes.

How APY rates move and why they change so often

Banks set savings account APY based on the Federal Funds Rate, which the Federal Reserve adjusts roughly eight times per year. When the Fed raises rates, banks raise savings APY within days or weeks. When the Fed cuts rates, banks cut savings APY more slowly — sometimes taking months — because they want to keep deposits. This lag means the highest rates are usually available right after a Fed rate increase.

Competition also drives rate changes. If one major online bank raises its APY to 5.2%, competitors often match or exceed it within a week to avoid losing deposits. This competition is why online banks have pushed rates so high in recent years. A bank that falls behind on rate will see customers move their money elsewhere.

You should check rates again before you deposit a large sum, even if you checked a week earlier. A 0.3% drop in APY might not sound like much, but on $50,000 it costs you $150 per year in lost interest.

What to look for beyond the headline APY number

The APY advertised is only part of the picture. Check whether the rate applies to all balances or only balances above a certain amount. Some banks offer 5.3% APY on the first $25,000 and 4.5% on anything above that. Others offer the same rate on all balances. The difference matters if you have a large deposit.

Confirm whether the bank requires a minimum deposit to open the account and whether it charges monthly maintenance fees. Most online banks have no minimum and no fees, but some require $500 or $1,000 to start. A $15 monthly fee erases the benefit of a 0.5% higher APY on a small balance.

Check the bank's FDIC insurance status. All major online banks are FDIC-insured, which means your deposits up to $250,000 are protected if the bank fails. Credit unions carry NCUA insurance, which provides the same $250,000 protection. If you have more than $250,000 to save, you can open accounts at multiple institutions to stay within the insurance limit at each one.

Online banks versus credit unions: which offers higher rates

Online banks and credit unions compete directly on APY, and the winner varies by week. Large credit unions like Connexus Credit Union and Pentagon Federal Credit Union have offered rates matching or exceeding the top online banks. The trade-off is that credit union membership sometimes requires you to live in a certain area, work in a certain industry, or meet other conditions. Online banks have no membership requirements — anyone can open an account.

Credit unions are member-owned, so they theoretically return profits to members through higher rates and lower fees. In practice, the best rates come from whichever institution — bank or credit union — is most aggressively competing for deposits that week. You should compare both categories when you are ready to move money.

If you are already a member of a credit union, ask what APY they currently offer on savings accounts. If it is within 0.3% of the highest online bank rate, staying with your credit union may be simpler than opening a new account elsewhere. If the gap is larger, the extra interest may be worth the switch.

How to move money to a higher-rate account without losing interest

When you find a bank with a higher APY, you do not have to close your old account immediately. Open the new account, then transfer your money over a few days. Interest accrues daily, so you will earn the old rate until the day the money leaves the old bank and the new rate from the day it arrives at the new bank. The difference is usually a few dollars on a typical balance.

Use an ACH transfer (Automated Clearing House) to move money between banks. This is free and takes one to three business days. Do not use a wire transfer unless you are in a hurry — wire transfers cost $15 to $30 and are unnecessary for savings accounts. Most banks let you initiate an ACH transfer from the new bank's website by entering your old bank's routing number and your account number.

If you have automatic deposits set up with your employer or another source, update the account number at the source so future deposits go to the new bank. This prevents you from accidentally funding the old account after you have moved your savings.

Rate locks and promotional APY offers

Some banks advertise a promotional APY for a limited time — for example, 5.5% for the first three months, then 4.8% after that. Read the fine print carefully. Most promotional rates apply only to new deposits or new accounts, not to money you transfer in. A few banks apply the promotional rate to all money in the account for the stated period, which is a better deal.

Promotional rates are useful if you are moving a large sum and can lock in a higher rate for a few months while you decide whether to keep the account long-term. After the promotional period ends, the rate drops to the bank's standard APY. Check what that standard rate is before you open the account, because you may want to move your money again if it falls too far behind the competition.

No bank locks in a rate permanently on a savings account. Banks reserve the right to change APY at any time, and they do. A rate that is highest today may be middle-of-the-pack in six months. This is why checking rates every few months and moving money when a better option appears is a normal part of managing savings.

Frequently Asked Questions

Can I lose money if I move my savings to a different bank?

No. Moving money between FDIC-insured banks does not put your principal at risk. You earn interest at the old rate until the money leaves and at the new rate once it arrives. The only cost is your time. Wire transfers charge a fee, but ACH transfers are free.

What is the difference between APY and APR on a savings account?

APY (Annual Percentage Yield) includes the effect of compounding — interest earned on interest. APR (Annual Percentage Rate) does not. Banks must disclose APY on savings accounts, so that is the number you should compare. APR is used for loans, not savings.

If I keep moving my money to chase higher rates, will banks close my account?

No. Moving money between your own accounts at different banks is normal and legal. Banks do not penalize you for it. They may close an account if you engage in fraud or repeatedly overdraft, but switching to a higher-rate account is not a reason to close you.

Do I need a certain amount of money to get the highest APY?

Most banks offer the same APY on all balances, whether you have $100 or $100,000. A few banks offer tiered rates — higher APY on larger balances. Check the terms before you open an account if you have a small balance, because some banks may offer a lower rate on accounts under $10,000.

What happens to my APY if the Federal Reserve cuts interest rates?

Your APY will drop, but not immediately. Banks usually cut savings rates within a few weeks of a Fed rate cut, but the timing varies. If you want to lock in a higher rate before a cut happens, move your money as soon as you see the Fed signal a rate cut is coming.