Savings Books on the Rise: Interest Rates at Impressive Levels

After several interest rate cuts by the Federal Reserve in late 2024, deposit rates are retreating from their historic highs. Nonetheless, some savings accounts currently offer impressive terms that are well above 4% APY. This may please savers looking for attractive deals. Although savings rates are relatively high from a historical perspective, the national average interest rate for savings accounts according to the FDIC is only 0.39%. However, the top savers would be wise to keep an eye out for top offers, as some banks, including online banks, are offering rates that are more than ten times the average standard. As of the cut-off date of September 19, 2025, EverBank marks the top offering with a rate of 4.30% APY. Such terms are particularly found at online banks, which, thanks to their cost-effective Internet structure, pass on high interest rates with low fees to their customers. These banks operate entirely online, making it easier for them to benefit from low operating costs. Not only online banks but also credit unions offer the possibility of achieving attractive interest rates. These operate on a non-profit basis and are often known for their favorable terms and low fees. While some credit unions have membership requirements, many are also accessible to broader customer groups. For security-oriented savers, savings accounts remain one of the best options, as they are insured by the FDIC—or by the NCUA for credit unions—up to $250,000. However, savings accounts do not have the potential for the high returns that the capital market offers. Those pursuing long-term savings goals, such as retirement, might be better served with investments in risk-bearing instruments like stocks or funds. For short- to medium-term savings goals, such as a down payment on a house or an emergency fund, savings accounts are nevertheless one of the safest and most flexible ways.