In this complete guide, you’ll uncover the most effective high-yield financial savings accounts for 2025 and study precisely how to choose, open, and manage the proper one for your financial objectives. With a standout APY, no monthly upkeep fees, and a minimum steadiness of just a penny, there’s so much to love about the high-yield financial savings account with Valley Direct. Plus, those trying to maintain some cash liquid in financial savings whereas locking away a part of their reserve in CDs will recognize that Valley offers three-month and 12-month CDs with competitive charges too. With an APY of as much as 3.60%, a high-yield savings account at SoFi is a very respectable place to stash your savings.
While Forbright has branches in Maryland and Virginia, the HYSA is a digital-only product. For more information on any of the accounts beneath, scroll previous the table for detailed account profiles. Banks are actually allowed to set their very own guidelines on transaction limits.
However, superior rates are supplied with high-yield savings accounts from some of the nation’s premier financial establishments. We have scrutinized accounts from over forty banks and credit unions nationwide. These accounts have been determined as the top choices primarily based on their rates of interest, charges, and other relevant components. You don’t wish to pay a month-to-month upkeep cost, because that may doubtless price you more than what you’ll earn, even with a powerful rate of interest. Along with stronger yields, the high-interest accounts tend to supply more perks than commonplace bank accounts. These accounts normally have on-line access and a lot of don’t cost a month-to-month charge.
Though we like Rising Bank’s high APY on this savings account, there are a few caveats potential clients should weigh. First, you need a $1,000 minimum balance to open the account, and you must additionally preserve a $1,000 minimal balance to earn the APY. SoFi Plus is out there at no further value for customers with eligible direct deposit. Otherwise, the value of membership is $10 per month as of this writing. It’s crucial to know that you’ll have to keep up both accounts to maximize your returns—if you don’t need the checking account, the usual financial savings account from Axos yields simply 0.61% APY.
But whether you are holding financial savings within the bank or are shifting funds from more unstable investments, it’s important to consider how much you probably can earn from different money methods. Opening and managing a high-yield savings account is relatively easy, but there are a quantity of key steps to comply with to make sure you’re making the best selection and getting the most out of your account. To illustrate the difference, imagine you’ve $5,000 in an account with a 3% APY, and it compounds every day versus monthly. The daily-compounding account would provide you with slightly more in curiosity on the finish of the year, even though each accounts have the same APY. Look for features that can make managing your savings easier, similar to budgeting instruments, goal-setting options, or ways to track curiosity development over time. These instruments might help you keep on top of your savings targets and guarantee you’re benefiting from your high-yield account.
Unpaid financial institution fees and bounced checks can lead to a adverse file on ChexSystems, a shopper reporting company that financial institutions use to gauge a prospective customer’s banking historical past. On Nov. 19, 2025, the establishment on our greatest high-yield savings account record with the highest APY is Varo Bank. Financial establishments usually don’t change savings charges on an hourly, every day or even month-to-month basis. In reality, under regular circumstances, it’s frequent to see APYs remain the same for several months. At a brick-and-mortar financial institution, you’ll typically find savings charges closer to the nationwide common, which is currently 0.40%.
This offers peace of thoughts understanding you can attain actual assist whenever you need it. Your deposits stay protected through FDIC insurance coverage up to $250,000, making this a safe place to grow your savings with minimal problem. However, as an online-only bank, SoFi doesn’t support bodily branches and solely accepts money deposits by way of partner retailers such as CVS or Target at a value of up to $4.95 per transaction.
This is likely due to issues with your earlier banking history. The Federal Reserve introduced a cut to the federal funds fee on Oct. 29. The earlier range, announced Sept. 17, 2025, was four.00% to four.25%. 5.00% on balances up to $5,000 when sure necessities are met (read evaluate for details). For complete listing of account particulars and charges, see our Personal Account disclosures.
But it is not an excellent alternative for long-term financial savings targets like retirement. Here are the kinds of savings that consultants say you must maintain in a HYSA. However, you can also open multiple financial savings accounts to keep your financial goals separate. Anna N’Jie-Konte, a certified monetary planner, recommends a high-yield financial savings account for anyone on the lookout for flexibility and easy accessibility to their cash — especially to accommodate a wet day fund.
High-yield financial savings accounts provide a comparatively high-interest price on your stability. The extra you save, the more money the rate of interest goes to earn you. There are no month-to-month fees and no minimal balance requirements, so it can save you as a lot as you possibly can with out having to settle for a decrease price or a higher charge. The account doesn’t have a minimum opening stability and may be opened online, at one of the bank’s branches, or at a Capital One Cafe. Interest on the account is compounded daily and paid out to the account once a month.
If the fluctuating nature of high-yield financial savings account rates of interest does not attraction to you, you may contemplate a CD. EverBank’s Performance Savings Account can help you shortly build your nest egg. There are no month-to-month upkeep fees, and the APY of is aggressive. GOBankingRates works with many financial advertisers to showcase their services to our audiences. These manufacturers compensate us to promote their merchandise in advertisements across our site. This compensation may impact how and where merchandise appear on this web site.
Raisin is a financial savings platform that provides online-only high yield financial savings accounts for dozens of banks. It’s that’s aimed at making personal finance easy, with simply manageable financial savings accounts. The best high-yield savings accounts supply aggressive interest, minimal fees, and user-friendly account options.
For terms of 18 months to 5 years, the top CD charges range from four.30% to four.65%, providing a rate guarantee that may last till a minimum of late 2026 and so long as 2029. Yes, in case you have distinct financial goals—like an emergency fund, trip fund, or automotive fund—having separate HYSAs can simplify monitoring and enhance organization. They are typically labeled as promotions that don’t last lengthy (which is why many have an expiration date), so when you see one which catches your eye you’re finest off appearing quickly.
Everything is more expensive than it was once, but your paycheck hasn’t saved up. Millions of Americans ignore these straightforward ideas that might have you ever padding your wallet in no time. Rates on HYSAs transfer up and down with the Federal Reserve, so today’s 3% or 5% APYs could drop sooner or later. We found standout choices from Synchrony, SoFi, Betterment, Capital One, and more. You also needs to issue in the general customer experience on the financial institution. We replace our information frequently, but information can change between updates.
Don’t stash your savings in an account that isn’t FDIC or NCUA insured. Otherwise, you would be in a tricky scenario if the worst happened. If you would possibly be in search of a spot to stash long-term financial savings, a high-yield financial savings account is a good possibility. You’ll have fast entry to cash whenever you want it without giving up the chance to place your funds to work for you. Compare financial savings accounts and discover the best APY charges out there right now. For a high-yield financial savings account, something above 3.50% is taken into account a great APY.
The following accounts supply a few of the highest rates we’ve seen, however restrict how much of your savings can profit from those charges. Therefore, once you’ve amassed sufficient financial savings, you need to consider moving for funds into an account talked about above. Synchrony Bank is providing a three.65% APY (annual percentage yield) on its High Yield Savings Account, that’s many instances the nationwide common.
Depending on how usually you’d wish to entry your funds and the quantity of threat you’re feeling compelled to take, “good” alternatives can admittedly look very totally different. Here are a couple of alternate options to high-yield accounts which would possibly be still FDIC insured, plus one that’s not. The greatest distinction is that you just earn extra curiosity every month. Today you may earn 3.60% on its flagship savings account, in comparison with 0.87% a decade ago when inflation was beneath the Fed’s 2% goal. We base our choice on which banks and merchandise to include in our lists solely on an unbiased methodology, which you’ll find a way to learn extra about under. This financial institution can also be an excellent option for a free checking account with exciting perks.
And providers that are note banks will usually partner with banks to offer insurance coverage. Accounts at banks are backed by the Federal Deposit Insurance Corp., while credit union accounts are backed by the National Credit Union Administration. This means that even when the financial institution fails, the government makes sure your cash is protected and accessible.
Make certain the financial institution is FDIC insured (all the financial establishments on this submit are).As you narrow down on which bank account to open, verify to see if there’s a bank bonus. Some banks provide a sign-up bonus for opening an account as an incentive to strive them out. Be sure to read this submit for essential info on the Upgrade promotion. I made a combined $700 just for opening bank accounts with Upgrade!
Online-only banks often supply higher rates than conventional brick-and-mortar banks as a end result of they have lower overhead costs. Without bodily branches, online banks can pass on the savings to prospects in the type of greater interest rates. Credit unions, that are member-owned, may also supply aggressive rates compared to traditional banks as a result of they’re usually focused on serving their members’ wants. Index funds have the potential to earn considerably higher returns than high-yield financial savings accounts and may keep pace with inflation over the lengthy term. However, returns are not assured, and there is a danger of loss.
Customers can simply open an account via the M1 Finance app or website. The seamless utility process and user-friendly interface make it convenient for people to start saving and earning interest instantly. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial employees alone. The information is accurate as of the publish date, however always verify the provider’s web site for essentially the most present info.
They are able to cross the savings on to clients in the form of higher yields. Several banks shut down in 2023 after a protracted interval of interest rate hikes by the Fed. The chance that this could occur at different banks makes it essential that your account(s) embrace FDIC insurance coverage for each dollar you place within the bank. By nature, when selecting which high-yield financial savings account to open, you are doubtless in search of the best APY providing.
We like that it presents aggressive APYs and extended customer support hours. Its high-yield financial savings consistently features a aggressive APY with no month-to-month charges or minimum stability necessities. There is no formal definition of how excessive a price must be to qualify as “excessive yield”. In quick, it is as much as each institution tips on how to name their savings accounts. Traditional banks and credit unions more typically offer conventional financial savings accounts, whereas online banks are extra likely to provide a high-yield financial savings account. But once more, the distinctions are fuzzy, quite than hard-and-fast rules.
With M1 High Yield Savings Accounts, clients can earn an annual share yield of 4.00% on their financial savings steadiness. It also offers different advantages such as no minimal steadiness requirement, no month-to-month charges, and unlimited transfers. This flexibility makes it simple for customers to manage their financial savings with none pointless restrictions.
High-yield financial savings accounts (HYSAs), however, offer annual proportion yields (APYs) that are much higher than conventional financial savings accounts. Read on for our list of banks and credit unions offering the most effective HYSA charges right now, as well as a guide on how these financial savings accounts work and the way to decide on the best one for you. A money market account is a kind of financial savings account that usually offers higher interest rates in exchange for greater minimal deposit and balance necessities.
In addition to earning a competitive APY, its savings account has no month-to-month fees, minimum initial deposit or minimum balance requirement. The limitless number of transfers and withdrawals permitted is an added benefit. TAB Bank presents a HYSA with a beautiful APY that’s 9 occasions the national common. There is no minimum opening requirement and the minimum steadiness to receive the advertised APY is just 1 cent. The account doesn’t cost month-to-month maintenance fees and there aren’t any stability caps. Newtek Bank could give consideration to business banking, however it additionally has an HYSA that offers a really competitive APY.
In the Varo cellular app, customers will discover a direct deposit widget monitoring progress towards the 5% APY. Also, observe that only balances up to $5,000 are eligible for five.00%. When you open a high-yield savings account, one of the best ways to grow your balance is by making regular contributions. The more incessantly you add money to your account, the extra you’ll profit from compound interest, which is actually the interest earned on curiosity. Ally’s cell app allows you to manage your account, set up computerized financial savings objectives, and easily switch cash to and from linked accounts.
There are rewards checking accounts and “kasasa” checking accounts (named after the company that runs them on behalf of small neighborhood banks and credit score unions). They give a higher interest rate if you make X transactions a month with their debit or bank card. Those transactions gather fees they usually move some of that onto prospects. American Express® Personal Savings is a high-yield financial savings account that earns 3.50% APY with no monthly charges or minimum balances.
If you have a desire, make certain the high-yield financial savings account you select provides what you are on the lookout for. Your first $25,000 in this high-yield financial savings account earns zero.61% annual proportion yield (APY). The Savings Connect account earns three.75% and has no minimal stability or direct deposit necessities.
Note that savings and cash market account rates are variable, that means the bank can decrease them at any time. In distinction, CD rates are fixed and assured for the complete time period of the certificate. High-yield accounts usually present rates that are 10 to twenty times greater than standard accounts. For example, while the national average financial savings fee is 0.38%, many high-yield accounts supply rates above 4%. Individual banks set savings rates loosely primarily based on the federal funds rate—the rate of interest that banks charge other banks once they lend one another money, usually overnight or for a few days. When the Fed hikes charges, this could increase the cost of borrowing and motivate banks to lift their APYs to attract new customers.
Unlike CDs, you’ll still have full access to your cash everytime you need it. You can discover a record of rewards checking accounts in your state along with present interest rates right here. Based on comparability to the nationwide average Annual Percentage Yield (APY) on savings accounts as revealed in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
These days, you won’t discover any high-yield financial savings accounts that offer 7% APY. With charges slowly trending downward, it could be a while until financial establishments start offering interest rates wherever close to 7%. One of some great benefits of high-yield savings accounts is the benefit of access by way of on-line banking and cell apps. These platforms let you handle your account securely, deposit checks, and pay bills from anywhere. High-yield financial savings accounts are financial savings accounts that earn higher APY than traditional savings accounts. For reference, the nationwide average for traditional savings accounts hovers round zero.47% APY, on average on the time of writing.
Barclays Tiered Savings account is designed to assist account holders reach their financial savings targets without any roadblocks. Indeed, rates on financial savings accounts surged final spring to their highest level in over 20 years, reaching a peak rate of 5.55% in April. That was triggered by the Federal Reserve’s aggressive rate-hike campaign of 2022–2023, which aimed to convey down decades-high inflation by raising the federal funds fee to its highest degree since 2001. Finally, make sure the financial institution is FDIC-insured (or NCUA-insured if it’s a credit score union). Look for clear disclosure of charges, together with any potential charges for excessive transfers.
If you’re in search of an online financial institution with great customer service, it’s hard to beat CIT Bank. They have live chat available 24/7 and I’ve never waited lengthy for the handful of times I wanted help. If your financial savings are languishing in an account with a low APY, you owe it to yourself to put them somewhere better. Here are our high selections for financial savings accounts that may assist you to enhance your balance.
High-yield financial savings accounts offer you an opportunity to reach your savings aim quickly. By providing you rates that outpace inflation with no account charges or minimums. Rates for high-yield financial savings accounts are holding regular — round 4% APY presently. This is sweet information for savers who want an accessible automobile to grow their cash with zero danger.
They generally come with check-writing privileges and a debit card, making them a bit extra versatile than high-yield financial savings accounts. However, they also are subject to the six withdrawals per thirty days limit. A high-yield financial savings account is a deposit account provided by banks or credit score unions that pays a significantly higher rate of interest than a standard financial savings account. What sets it apart is the interest rate—often a number of occasions greater than what you would earn in a regular financial savings account.
If you’re simply starting to save, however, attempt to put aside a little bit from each paycheck. Set up a direct deposit into a high-yield financial savings account in order that a percentage of your revenue is routinely saved. The amount you put aside will rely in your earnings, bills, debt and personal comfort level. Over the subsequent six to 12 months, financial savings yields are likely to drift lower because the Fed continues to reduce the federal funds rates.
Below are one of the best high-yield savings accounts we now have found with the best yield at a variety of the high online banks. You’ll sometimes want to provide private data, make an initial deposit, and confirm your identification. Many accounts can be funded by transferring money out of your current bank account. Big banks have a tendency to offer more in-person companies and broader monetary merchandise, whereas online banks are probably to have lower fees and higher interest rates. HYSA options at massive banks are restricted and those that do exist is often a good match if you favor maintaining your accounts underneath one roof.
If you can’t quite clear the $5,000 threshold, CIT Bank has different high-yield financial savings accounts plus a number of high-yield CDs and a cash market account. It’s an especially good thought to avoid accounts with minimum stability requirements and fees whenever you open a savings account for a kid. You will act as a custodian for the account and have full access. When your child turns 18, you might sign over your custodial rights. Discover one of the best high-yield financial savings accounts of 2025, providing top rates, low charges, and handy on-line entry to grow your financial savings quickly and securely.
SoFi’s HYSA has a competitive three.80% APY with no month-to-month maintenance charge or minimal stability. The online bank offers a hybrid financial savings and checking account option, so if you open a SoFi financial savings account, it will routinely open a checking account in your name. SoFi’s account is a stable possibility for savers, however its marketed APY is just good for up to six months. Whether you’re rising your emergency fund or saving for short-term objectives corresponding to a vacation or new automotive, it’s essential to place your cash someplace where it’s simply accessible.
When you’re evaluating financial savings accounts, you’ll often see the time period “high-yield” thrown around. A high-yield savings account is essentially a savings account that gives a much higher interest rate than conventional savings accounts. These accounts are designed that will help you grow your cash faster, particularly when compared to the low-interest choices that you simply may find at your typical brick-and-mortar bank. High-yield savings accounts usually present rates that are 10 to twenty occasions higher than their traditional counterparts.
NerdWallet did intensive, impartial analysis on dozens of account providers to establish one of the best options. Read on for extra details about NerdWallet’s best high-interest accounts. If you’ve cash sitting in a low-rate account, shifting it right into a HYSA is certainly one of the easiest ways to make your cash work tougher, it would not matter what the economy is doing. And when you ever decide you’re prepared to invest, your cash is already sitting inside Betterment’s platform, so you probably can move it straight into an funding portfolio.
Unfortunately, they provide a measley 0.01% APY on their savings account. ATM Access We’ve partnered with Allpoint to give you ATM entry at any of the 55,000 ATMs throughout the Allpoint community. You will not be charged a charge when utilizing an in-network ATM, nevertheless, third-party feesmay be incurred when using out-of-network ATMs.
With early direct deposit, you will get paid up to two days sooner. That means sooner access to your cash and extra flexibility to make use of it (or grow it) immediately. Read NerdWallet’s picks for the best money market account and finest money administration account options. Its other savings choices include the Savings Connect account, which you’ll open with a deposit of at least $100.
At the time of writing, no different financial institution on this list hits that lofty fee. It’s also essential to do not neglect that compound interest works greatest over the lengthy run. If you plan on utilizing the account for short-term financial savings, you may not see the utmost good thing about compounding. But if you’re saving for long-term targets like a retirement fund or a big purchase, constantly including funds and permitting interest to build up will lead to vital development through the years. Capital One also offers robust buyer help, which makes managing your account extra handy and dependable.
This may be very convenient, permitting you to transfer funds between accounts, view transactions, and monitor your balance from anyplace. When you’re selecting an account, make certain the net interface is user-friendly and works well on mobile devices. When choosing a high-yield savings account, choosing the right one can significantly impact how quickly your financial savings grow. Some accounts may seem to offer engaging rates, but hidden charges or other restrictions can undermine your incomes potential. It’s essential to take the time to gauge key options similar to rates of interest, fees, withdrawal limits, and any minimum balance necessities before you make your choice.
But generally, many banks will let you link exterior accounts digitally, so initiating a switch must be one thing you are in a position to do with a quantity of clicks. Note that while it’s not a federal restriction any longer, a lot of institutions nonetheless enforce the cap of six withdrawals from your financial savings account per statement cycle. UFB Direct is actually a division of Axos Bank that helps savers earn an unusually excessive annual proportion yield and a strong cell app that makes it simple so that you just can evaluate your accounts at any time. Any money you retain in a high-yield financial savings account is underneath the identical protection as your different deposit accounts.
High-yield financial savings accounts differ from CDs in that HYSAs preserve entry to your funds, while CDs require that you simply commit to locking up your funds for a fixed time period if you hope to keep away from a penalty. To earn the highest APY your SoFi high-yield savings account presents, you have to set up direct deposit or deposit at least $5,000 each 30 days. Compared to some HYSA rivals with minimum direct deposit thresholds, the SoFi account stands out for making it relatively simple to earn a high price of return. While high-yield financial savings accounts provide a secure and dependable method to earn curiosity, there are several other options to consider, relying on your monetary goals and risk tolerance. These options can supply higher returns, but they might come with more risk or much less liquidity.
These establishments don’t have to keep up bodily branches, to enable them to afford to supply high APYs. This means if you’d like a high-yield savings, you’ll probably have to be comfy managing the account online. Select Compare for up to four merchandise to see how they stack up against each other. Because most high-yield financial savings are at on-line banks, make positive you perceive how you can deposit and withdraw your cash. Citizens’ high-yield savings account — Citizens Access Savings — has a respectable APY and no hidden fees.
Refer to your ‘HSBC Premier Terms and Charges Disclosure’ for full particulars.• Balances of $100,000 in mixed U.S. consumer and qualifying industrial U.S. Home Equity merchandise, loans which are in foreclosures or bankruptcy, and loans for which servicing rights have been transferred aren’t included. High-interest deposit accounts are federally insured accounts provided by banks and credit unions (and sometimes nonbank providers). They are secure places to place your money that earn an established rate of return.
There are no transaction limits and it comes with a debit card and checks. This is the first financial institution on the record that provides all three deposit products – checking, savings, and CDs. Quontic Bank has a high-yield savings that earns 3.75% APY with no monthly fee. The Promotion begins on September 23, 2025, and can end at any time without discover. They provide a four.03% APY on their savings account by way of the Raisin platform. This additionally means that you can get a deposit bonus of as much as $1,000 by way of Raisin too, which boosts your rate of interest (you only want to hold the money there for ninety days).
As a web-based account, it also comes with a cellular app for Android and iOS gadgets. You can use the app to deposit checks, transfer funds, and see your balance. You can even allow Touch or Face ID to log in easily and securely.
The excellent news is there are many high-yield accounts from popular and trusted establishments, similar to SoFi, Marcus by Goldman Sachs and Discover. These banks have been additionally highly rated by their customers in Finder’s 2024 Savings Customer Satisfaction Awards. UFB Direct and Bask Bank replace their rates usually and are consistently at the highest rates. I do have extra financial savings accounts (opening bank accounts doesn’t have an result on your credit score score) and switch money when it’s worth it.
In contrast, CD charges are locked and guaranteed for the certificate’s full time period. While high-yield savings accounts are an efficient way to develop your money, there are several frequent pitfalls that may cut back your earnings or cause unnecessary frustration. Being aware of those potential issues will help you keep away from costly errors and make probably the most of your account. The method interest is compounded in a high-yield financial savings account can have a huge effect on how much your cash grows. Compound interest occurs when the curiosity earned on your stability is added to the principal, and future curiosity is calculated on that new balance. Some accounts compound yearly, quarterly, month-to-month, and even daily.
You won’t need to take care of a sure steadiness to earn this excessive fee, and you will not need to make a certain amount of direct deposits every month, making it a low-maintenance account. A money market account operates very very like a financial savings account, with the exception that it allows writing checks. In the previous, cash market accounts usually imposed excessive minimal deposit necessities in exchange for higher charges than savings accounts. This has shifted lately, nonetheless, with savings and money market accounts each having a big selection of required minimal balances—including no-minimums accounts.
Wealthfront Cash Account is certainly one of my favourite high-yield accounts because it combines the benefits of an HYSA with the pliability of a checking account. Online financial savings accounts are pretty simple to handle; you may simply need to connect your checking, and then you definitely’ll make transfers online. Discover® Bank’s Online Savings account earns 3.40% APY with no monthly fees for minimal steadiness requirements. Fed fee cuts apart, many high-yield savings accounts proceed to offer APYs within the neighborhood of four.00%. These accounts are effectively the most effective easy possibility for rising your cash safely while maintaining it inside reach. Though we’ll additionally note CDs are worth considering if you can afford to lock your money away for a set period of time.
The national average savings account rate is zero.41%, so any rate above that would be thought of above average. However, many banks supply savings accounts earning 1% APY and up—as much as 4% to 5% APY. So, if you’re looking for a high-yield savings account, it pays to shop round to search out the best rates obtainable. The account has no monthly upkeep charges, permitting customers to keep extra of their money.
There’s total liquidity in your account and an annual percentage yield well over the nationwide common. Backed by insurance coverage investments, the Cove Capital Liquid Income account is designed to ensure larger curiosity payouts and maintain these charges aggressive. CCLI is perfect for these who are highly risk-averse and require immediate access to their funds.
As all the time, examine your options till you discover a savings account that has every little thing you want. 2Based on comparison to the nationwide average Annual Percentage Yield (APY) on financial savings accounts as printed in the FDIC National Rates and Rate Caps, correct as of September 15, 2025. Savings accounts can come with monthly upkeep charges, extra transaction fees (if you ignore limits on withdrawals), and other pesky costs that can eat into your returns. Here’s an outline of how the nationwide average APY on financial savings accounts has modified over the past few years. The Federal Reserve had one thing called Regulation D, which stipulated that a financial institution can’t enable customers to withdraw more than six instances per month.
In 5 years, I would make $3,604 instead of the national average, which might yield $543. Best of all, now is an excellent time to safe a higher rate, because the Federal Reserve reduce rates again at its October meeting. With talks of another attainable fee cut occurring in December, now may be the time to capitalize while rates are still larger. APY (Annual Percentage Yield) contains the impact of compounding, while the interest rate doesn’t. APY provides you a more accurate picture of what you’ll actually earn over a yr, so it is the better quantity to match when looking for accounts.