Best High-Yield Savings Accounts in 2025: Where to Earn Over 5% Interest
Introduction
With the Federal Reserve holding rates steady in mid‑2025, many savers still have a golden opportunity to lock in high returns. While traditional bank savings accounts offer a dismal 0.38% APY on average, leading high‑yield savings accounts (HYSAs) now deliver rates between 4.00% and 5.00%, giving depositors a chance to earn hundreds—and even thousands—more in interest annuallyNerdWallet UK+6The Sun+6Kiplinger+6.
Below is our expert-vetted list of the best high-yield savings accounts available right now, along with practical considerations to help you choose the right one for your money.
1. Varo Bank – 5.00% APY (Up to $5,000)
- APY: 5.00%
- Requirements: Monthly direct deposit, maintain any positive balanceInvestopedia
- Pros: No minimum balance; highest tier rate widely available
- Cons: Rate drops slightly (e.g., 2.50%) above $5K; must meet monthly conditions
Ideal for new savers, Varo lets you get top-tier returns with minimal barriers.
2. AdelFi (via Participating Banks) – 5.00% APY (Limited to new members)
- APY: 5.00% for new accounts, typically capped at $5,000EU Personal Finance+14Investopedia+14Fortune+14
- Pros: Excellent returns for minimal deposit
- Cons: New member-only rate; often requires credit union membership
A great way to earn high interest immediately, though eligibility is limited.
3. Fitness Bank – 4.85% APY
- APY: 4.85% on balances above $100; sometimes tied to step tracking requirement (e.g., 5,000 steps/day)Investopedia+1Raisin+1
- Pros: High rate, low minimum deposit
- Cons: Fitness tracking requirement may not be for everyone
Perfect for health-conscious savers who meet activity thresholds.
4. Vibrant Credit Union & Presidential Bank – 4.50% APY
- APY: 4.50% for new money up to $15,000 (Vibrant), $5,000 (Presidential)Fortune+15Investopedia+15Investing in the Web+15
- Pros: Strong rates, insured accounts
- Cons: Requires credit union membership (Vibrant) or minimum stays (Presidential)
Solid options for those who qualify—even beyond large banks.
5. Axos Bank – 4.46% APY
- APY: 4.46% on new accounts with no large minimum depositNerdWallet UK
- Pros: No fees, no balance requirement, reliable online bank
- Cons: Online-only, may require longer setup time
Great for savers looking for a flexible, no-fuss experience.
6. Other Strong Contenders (~4.30–4.40% APY)
- Zynlo Bank, Newtek Bank, BrioDirect, EverBank, My Banking Direct — all offering APYs between 4.30% and 4.40%, with various minimums and perksBankrate+3Investopedia+3Kiplinger+3How-to-Germany.comInvestopedia.
- Newtek Bank: No minimum balance required and 4.35% APYKiplinger+2Kiplinger+2Kiplinger+2
- Bread Savings: 4.25% APY with a low opening deposit ($100)Raisin+14Kiplinger+14Kiplinger+14
These accounts are ideal if you have more than $5K to deposit or prefer flexibility across multiple institutions.
✅ Why You Should Consider These Accounts Now
- Federal Reserve rates remain elevated, and while cuts are expected later in 2025, they haven’t happened yet. Savers can still lock in yields up to five times the national averagemarketwatch.com+4businessinsider.com+4Kiplinger+4.
- Keeping funds in traditional checking or savings accounts effectively earns you next to nothing—e.g. on $30K, traditional accounts may pay only ~$58/year versus ~$1,350 in a HYSAInvestopedia.
- All the accounts above are FDIC- or NCUA-insured, making them secure places to park emergency money or short-term savings.
💡 How to Choose a High-Yield Savings Account for You
Here are key factors to consider:
| Factor | What to Look For |
|---|---|
| FDIC/NCUA-insured | Up to $250K protection |
| APY rate | Preferably ≥ 4% for meaningful returns |
| Minimum balance | Low or no minimum deposit needed |
| Access/flexibility | Online access, no transfer or withdrawal fees |
| Conditional rates | Some require activity (e.g., depositing, stepping, membership) |
✏️ Real-World Example
Consider someone—call her Emma—who deposits $10,000 in a high-yield account earning 4.50% APY. Over 12 months, she would earn $450 in interest. In contrast, the same money in a traditional account at 0.38% APY earns only $38—a difference of over $400 just by switching.
🚫 Common Pitfalls to Avoid
- Watch for introductory (teaser) rates that drop steeply after a few months.
- Read the fine print: some banks require minimum direct deposits, monthly steps, or checking account retention.
- Beware of credit unions requiring charitable donations or employment membership.
🧠 Final Thoughts
With interest rate cuts likely later in 2025, now is a prime opportunity to lock in strong, safe returns while the Fed keeps rates high. Whether you choose Varo, AdelFi, Axos, or others on our list, your money can work harder—without sacrificing accessibility or safety.
Don’t let idle cash gather dust. With high-yield savings accounts offering up to five times the return, every dollar can be an asset.
