High-yield savings pay up to 5%
- Online savings accounts from Varo Money, Axos Bank and Newtek Bank were still paying as much as 5.00%, 4.21% and 4.20% APY in late April. - The Federal Deposit Insurance Corporation’s April update put the national average savings rate at 0.38%, leaving top online accounts more than tenfold higher. - Certificate of deposit rates still reached 4.20% on April 27 as banks trimmed yields after 2025 Federal Reserve cuts. (fdic.gov)
High-yield savings accounts were still paying up to 5.00% annual percentage yield in late April, even as the national average savings rate stayed at 0.38%. (fortune.com) (fdic.gov) Fortune’s April 24 roundup listed Varo Money at up to 5.00% annual percentage yield, Axos Bank at up to 4.21%, and Newtek Bank at up to 4.20%. (fortune.com) Forbes Advisor’s April 27 update also said top savings accounts were reaching 5.00% annual percentage yield, with account details checked as of April 27. (forbes.com) The gap is wide because the Federal Deposit Insurance Corporation’s April 20 table showed the national deposit rate for savings at 0.38% and the adjusted national rate cap at 4.39%. (fdic.gov) That leaves savers with a simple tradeoff. A high-yield savings account keeps cash accessible for emergencies, rent, taxes or a near-term purchase while still paying several percentage points more than a typical branch account. (fortune.com) (forbes.com) Certificates of deposit still paid slightly more in some cases, but they required locking money away for a set term and usually charged an early-withdrawal penalty. Fortune’s April 27 list showed top certificate of deposit rates up to 4.20% annual percentage yield. (fortune.com) The highest rate in that Fortune certificate of deposit list was Newtek Bank’s 9-month certificate of deposit at 4.20%, followed by Bread Savings at 4.15% and several 4.10% offers. (fortune.com) Fortune said many banks cut savings and certificate of deposit yields after the Federal Reserve reduced its benchmark rate three times in 2025. That helps explain why some savers are moving cash now instead of waiting for another drop. (fortune.com) (thefool.com) The headline number also needs fine print. Varo’s 5.00% rate is an “up to” offer, while other widely available accounts in Forbes’ April 27 table were closer to 3.10% to 4.00%. (fortune.com) (forbes.com) For anyone holding cash in a standard savings account, April’s numbers showed the same pattern: online accounts were still paying near 4% to 5%, while the national average remained below half a percent. (fdic.gov) (fortune.com)
