The banks offering the highest rates change every week, so there's no single "best" answer

Interest rates on savings accounts, money market accounts, and certificates of deposit (CDs) move constantly. A bank offering 4.5% one month may drop to 4.2% the next. The bank with the highest rate today might not have it next week. This means the "good" rate you're looking for depends on when you're searching and what type of account you need.

Right now, online banks and credit unions tend to offer higher rates than brick-and-mortar banks. That's because they have lower overhead costs—no physical branches to maintain—so they can pass more of their earnings to depositors. Traditional banks like Chase, Bank of America, and Wells Fargo typically offer rates well below 1% on savings accounts, while online options often sit between 4% and 5.35% depending on the account type and current market conditions.

The rate you actually receive also depends on the account type. High-yield savings accounts usually offer the highest rates. Money market accounts come next. Regular savings accounts pay much less. CDs lock your money away for a set time (three months to five years) but often pay more than savings accounts in exchange.

Key Takeaways

  • Online banks and credit unions currently offer rates between 4% and 5.35%, while traditional brick-and-mortar banks typically offer under 1%.
  • High-yield savings accounts pay more than regular savings accounts, and CDs pay more than both if you can lock your money away for months or years.
  • Rates change weekly, so the highest rate today may not be the highest next month—check current offers before opening an account.
  • FDIC insurance covers deposits up to $250,000 per account type per bank, so moving money between banks does not increase your protection beyond that limit.
  • Some online banks require a minimum deposit to open an account, while others have no minimum—read the terms before you start.

How to find the current highest rates

Use a rate comparison site like Bankrate, DepositAccounts, or NerdWallet to see what banks are offering on the day you search. These sites update daily and let you filter by account type (savings, money market, CD) and term length (for CDs). The rates shown are current as of that day, though they can change before you finish opening an account.

Once you've found a rate you want, go directly to the bank's website to open the account. Do not open through the comparison site—open through the bank itself to make sure you get the rate advertised and to avoid any third-party delays or errors. Read the terms carefully: some banks require a minimum opening deposit, some charge monthly fees if your balance drops below a certain amount, and some offer the high rate only for the first few months.

If you already have a bank account somewhere, check what your current bank is offering before you move money. Some banks will match or beat a competitor's rate if you ask, though this is not may provide. It's worth a phone call if you've been a customer for years.

Online banks vs. credit unions vs. traditional banks

Online banks (like Marcus, Ally, American Express Personal Savings, and Discover) have no physical locations. They operate entirely through their website and app. Because they don't maintain branches, they pass the savings to customers through higher rates. Most online banks are FDIC-insured, meaning your deposits are protected up to $250,000. Many have no monthly fees and no minimum balance requirements.

Credit unions are member-owned cooperatives, not for-profit institutions. They often offer rates competitive with online banks and sometimes better rates on loans. To join a credit union, you must meet membership requirements—these vary by union but might include living in a certain area, working for a specific employer, or belonging to an organization. Credit unions are insured by the National Credit Union Administration (NCUA), which works the same way as FDIC insurance: up to $250,000 per account type per institution.

Traditional banks (Chase, Bank of America, Wells Fargo, Citibank) have physical branches where you can deposit cash and speak to a teller. This convenience comes at a cost: their rates are typically much lower because they spend heavily on real estate and staff. If you need to deposit cash regularly or prefer in-person service, a traditional bank may be worth the lower rate. If you're comfortable with online banking, you'll earn significantly more elsewhere.

What to check before opening an account

Before you move your money, read the account terms on the bank's website. Look for these details: the current APY (annual percentage yield), any minimum opening deposit, any monthly maintenance fees, whether the high rate applies to all balances or only the first tier, and how often the rate can change.

Some banks advertise a high rate but only pay it on balances up to a certain amount—say, 4.5% on the first $25,000 and 0.01% on anything above that. If you have $100,000 to deposit, that rate is not as good as it looks. The account terms will spell this out, usually in a table showing the rate at different balance levels.

Also check the bank's FDIC or NCUA insurance status. This is not about whether the bank is safe—most banks are safe—but about what happens if the bank fails. FDIC and NCUA insurance means the government will return your deposits up to $250,000 per account type per institution. If you have more than $250,000, you can open accounts at multiple banks to stay fully insured. The bank's website will state its insurance status clearly.

How rates connect to the Federal Reserve

Banks set their own rates, but they're influenced by the Federal Reserve's benchmark interest rate, called the federal funds rate. When the Fed raises its rate, banks eventually raise the rates they offer on savings accounts. When the Fed lowers its rate, banks lower savings rates too. The lag between a Fed move and a bank's response can be weeks or months.

This matters because if you're watching rates and they seem to be dropping, it may be because the Fed has signaled it will lower rates soon. If rates are rising, it may be because the Fed has raised rates or is expected to. Checking financial news sites like Reuters or the Federal Reserve's own website can give you a sense of where rates are headed, though no one can predict with certainty.

Moving money between banks without losing interest

If you find a better rate at a different bank, you can move your money without penalty. Most banks allow you to transfer money electronically from another bank account using ACH (Automated Clearing House) transfer. This usually takes three to five business days. Some online banks also let you mail a check or wire money, though wiring costs money and is slower than ACH.

When you move money, your old account will close (or you can keep it open if you want). There's no penalty for closing a savings account, and it doesn't hurt your credit. The only thing to watch: if you close a CD before its term ends, you'll usually pay an early withdrawal penalty. Read the CD terms to see what that penalty is before you open the account.

One timing note: if you move money mid-month, you may lose a few days of interest at your old bank because interest is calculated daily. This is usually just a few cents, but it's worth knowing. Some people move money on the first of the month to avoid this.

Frequently Asked Questions

Can I move my money to a higher-rate bank without losing the interest I've already earned?

Yes. Interest you've already earned stays with you. When you transfer money out, the old bank will pay you the interest accrued up to the day you close the account. You'll receive it as part of the transfer or as a separate deposit. There's no penalty for moving money from a savings account.

What if the rate drops after I open the account?

Banks can lower rates on savings accounts and money market accounts at any time without notice. If your bank drops its rate and you find a better one elsewhere, you can move your money. CDs are different—the rate is locked in for the entire term, so if you open a one-year CD at 4.5%, you'll earn 4.5% for the full year even if rates drop.

Do I need to keep a minimum balance to earn the advertised rate?

It depends on the bank. Some banks pay the full rate on all balances, no matter how small. Others require a minimum balance—often $500 or $1,000—to earn the advertised rate. If your balance drops below the minimum, you may earn a much lower rate or pay a monthly fee. Check the account terms before you open.

Is my money safe at an online bank?

If the online bank is FDIC-insured, your deposits are protected up to $250,000 per account type, the same as at a traditional bank. Check the bank's website for its FDIC certificate number. Online banks are not less safe than traditional banks—they're just different. Your money is not sitting in a vault somewhere; it's held in the bank's reserve accounts and lent out, just like at any other bank.

Should I split my money between multiple banks to earn more?

Only if you have more than $250,000. FDIC insurance covers up to $250,000 per account type per bank, so if you have $500,000, you could open a savings account at two different FDIC-insured banks and be fully protected. If you have less than $250,000, keeping it all at one bank is simpler and earns you the same amount.