Savings accounts hit ~5%

Some savings accounts are paying as much as 5.00% a year in interest in mid-April, while the Federal Deposit Insurance Corporation’s national average savings rate is still 0.39%. (fortune.com) Fortune’s April 14 roundup listed 5.00% annual percentage yield, or APY, at the top of the savings market, with other quoted offers at 4.21% from Axos Bank and 4.20% from Newtek Bank. (fortune.com) Certificates of deposit are lower than the very highest savings offers, but still above 4.00% in some cases. Fortune’s April 13 roundup put the top certificate of deposit rate at 4.20% APY, led by a 9-month certificate from Newtek Bank. (fortune.com) APY is the yearly return after compounding, and the gap between 5.00% and 0.39% is the point of this story. A bank paying 5.00% is offering more than 12 times the Federal Deposit Insurance Corporation’s posted national savings rate. (fortune.com; fdic.gov) The national average stays low because it reflects what banks and credit unions pay across the system, weighted by deposits, not just the best online offers advertised to rate shoppers. The Federal Deposit Insurance Corporation says that is how it calculates the “national rate.” (fdic.gov) The March 16, 2026 Federal Deposit Insurance Corporation table shows just how wide the spread is: savings at 0.39%, 12-month certificates of deposit at 1.52%, and 24-month certificates at 1.49% on a national basis. (fdic.gov) Rate shoppers are also seeing a market that has cooled from its peak. Fortune reported that the Federal Reserve cut its benchmark federal funds rate three times in 2025, and banks have been lowering savings and certificate of deposit yields in response. (fortune.com) That helps explain why certificates of deposit are being pitched as a “lock in” product. A savings account usually lets customers move cash in and out, while a certificate of deposit trades that flexibility for a fixed term and an early-withdrawal penalty. (fortune.com; fortune.com) Not every published “top rate” is equally easy to get. Bankrate’s April 14 editorial list, which only includes Federal Deposit Insurance Corporation banks and National Credit Union Administration credit unions, showed a lower top savings rate of 4.21%, and noted that annual percentage yields can vary by institution and product terms. (bankrate.com) The headline number is real, but it is not the market norm. In April 2026, the main divide in cash savings is between customers who leave money in a standard bank account and customers who actively shop for the few accounts still paying near 5%. (fortune.com; fdic.gov; bankrate.com)