Which Bank Gives Highest Interest Rate on Saving Account

Current Interest Rates for Savings Accounts in 2025

High-Yield Savings Account Offerings: Axos Bank – 4.66% APY

• Rate: 4.66% APY (Annual Percentage Yield) as reported in May 2025
• Account: Axos ONE Savings Account, offered as part of a combined checking and savings account package
• Requirements:
  • Maintain a linked ONE Checking account with either:
    • an average daily balance of at least $1,500 plus at least $1,500 in monthly direct deposits, OR
    • an average daily balance of at least $5,000 with monthly external transfers/checks totaling $5,000
• Fees: No monthly maintenance fees disclosed
• Access: Fully online account; deposits insured by FDIC up to $250,000
• Description: Provides an option for savers seeking relatively high returns with specific linked checking account requirements.

Additional Savings Accounts with Competitive Rates (Around 4.3% - 4.4% APY)

• LendingClub Bank: 4.40% APY, requires $250 in monthly deposits to maintain rate.
• Santander Bank: 4.40% APY with a $500 minimum balance.
• BrioDirect: 4.35% APY with a $5,000 minimum balance.
• My Banking Direct: 4.40% APY with a $500 minimum balance.
• EverBank: 4.30% APY, no minimum balance or fees specified.
• UFB Direct Savings: 4.01% APY, no minimum balance required.
• Synchrony Bank: 4.00% APY, no minimum balance, offers ATM card and ATM fee reimbursements.

Considerations When Choosing High-Yield Savings Accounts

• Accounts may have no or low minimum deposit requirements to open.
• Look for absence of monthly maintenance fees.
• Ensure the institution is federally insured by FDIC (banks) or NCUA (credit unions) covering deposits up to $250,000.
• Consider ease of online and mobile access.
• Be aware that federal regulations typically limit withdrawals to six per month; some banks have adjusted these limits.
• Some accounts offer linked checking and savings options to facilitate convenience and additional benefits.

Certificates of Deposit (CDs) and Available Rates for 2025

Certificates of deposit usually offer higher interest rates compared to savings accounts in exchange for locking funds for a fixed term. Below are some options reported for 2025:

Short-Term CDs: CommunityWide Federal Credit Union – 4.50% APY for 6 Months

• Rate: 4.50% APY on a 6-month CD account
• Minimum deposit: $1,000
• Membership eligibility: Open to U.S. residents who make a $5 donation to selected charities and open a $5 minimum savings account.
• Other terms offered:
  • 12-month CD at 4.40% APY
  • 18-month CD at 4.20% APY
• Interest compounding: Dividends compounded monthly; 6-month CD interest paid as simple interest
• Renewal: No automatic renewal at maturity; depositor can decide on next steps
• Description: Suitable for savers seeking competitive short-term CD rates and comfortable with credit union membership requirements.

Longer-Term CDs: First National Bank of America – Rates up to 4.16% APY (5 Years)

• Rates:
  • 60-month CD: 3.96% APY
  • 72- and 84-month CDs: 3.90% APY
• Minimum deposit: $1,000
• Interest compounding: Quarterly
• Renewal: Automatic renewal after maturity with a 10-day grace period for changes
• Description: Intended for savers planning to lock funds for longer periods seeking steady returns.

CDs with No Minimum Deposit: Synchrony Bank

• 18-month CD rate: 3.80% APY, no minimum deposit required
• Grace period: 10 days after maturity to make withdrawals or changes without penalty
• No-penalty CD option: Available, typically offering lower rates as a trade-off for added liquidity.

Additional CD Options to Consider

• Bread Savings: One-year CD at 4.10% APY, $1,500 minimum deposit
• Marcus by Goldman Sachs: Two-year CDs around 4.10% APY, no minimum deposit
• Quontic Bank: Three-year CDs with 3.25% APY, $500 minimum deposit
• Consumers Credit Union: Promotional 9-month CD at 4.25% APY with low minimum deposit

Explanation Regarding the Absence of 12% Interest Savings Accounts in 2025

Currently, no federally insured banks or credit unions offer interest rates close to 12% APY on savings or CDs. Factors influencing available rates include:

• The Federal Reserve’s benchmark interest rate range, which has remained between 4.25% to 4.50% as of mid-2025.
• Macroeconomic conditions, inflation targets, and monetary policy that contribute to realistic yields on deposit products.
• The increased risk associated with institutions offering unusually high rates, which are often not federally insured.

Accordingly, it is advisable to focus on reputable, federally insured financial institutions offering rates that generally range from about 4% to 4.7% APY.

Steps to Access Available Savings and CD Rates

• Many competitive offers come from online-only banks and national credit unions which provide digital account opening processes accessible nationwide.
• There is generally no requirement to visit physical branches; applications, funding, and account management can be completed online.
• Institutions with nationwide availability and no or low minimum deposits include Axos Bank, Synchrony Bank, LendingClub, EverBank, Citi, Discover Bank, and UFB Direct.
• Deposits in eligible institutions are insured federally by FDIC for banks or NCUA for credit unions, protecting up to $250,000.
• To open an account, typical documentation includes:
  • Social Security Number or Taxpayer Identification Number
  • Government-issued photo identification
  • Initial funding via electronic transfer, check deposit, or wire transfer

Some traditional banks also offer competitive CD rates (such as BMO Alto’s 5-year CD at 4.80% APY), although their savings account interest rates may be lower on average.

Considerations When Selecting Financial Institutions for Savings and CDs

Important factors to evaluate include:

• Interest rate (APY): Higher rates support potential growth.
• Fees: To maximize returns, accounts without monthly maintenance fees are preferable.
• Minimum deposits: Consider amounts needed to earn top rates.
• Access convenience: Whether online/mobile access meets your needs or if branch access is important.
• Account features: The availability of linked checking accounts, ATM access, and ease of adding funds.
• Flexibility: Understand potential early withdrawal penalties for CDs, grace periods, and withdrawal limits.
• Reputation and Insurance: Verify FDIC or NCUA insurance status and overall institutional reputation.

Typically, combining a high-yield savings account for liquidity with CDs for fixed-term savings may help balance access to funds with achieving higher yields.

Information About Savings and CD Options in 2025

• The reported highest high-yield savings account APY is 4.66% at Axos Bank, subject to specific account requirements.
• Other savings accounts offer competitive rates generally ranging from 4.00% to 4.40% APY.
• The highest short-term CD rate is approximately 4.50% APY for 6 months at CommunityWide Federal Credit Union, with a $1,000 deposit and membership conditions.
• Longer-term CDs (5 years and longer) may offer rates close to 4.16% APY, such as those from First National Bank of America.
• No federally insured banks offer 12% interest rates; current rates reflect Federal Reserve policies and market conditions.
• Many top savings and CD offers are accessible nationwide through online account opening without branch visits.
• Consider your individual liquidity requirements, minimum deposit capabilities, and desired flexibility when choosing savings accounts or CDs to help meet your financial goals.

This information aims to assist in understanding typical federally insured savings and CD rate options available for 2025.

Sources

• NerdWallet: Best High-Yield Savings Accounts of May 2025
• Forbes Advisor: 12 Best CD Rates of May 2025
• Investopedia: Which Big U.S. Banks Pay the Best Savings and CD Rates Right Now?

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