High-yield savings accounts offer interest rates as high as 4% APY, compared to the average 0.39% rate for traditional savings accounts. SoFi, Barclays, and Valley Direct currently offer the highest rates at 4% APY. Federal fund rate cuts have caused deposit rates to decline, with more cuts expected.

Deposit rates are linked to the federal funds rate, set by the Federal Reserve. Recent rate cuts have led to falling deposit rates, making high-yield savings accounts a valuable option. With potential future rate cuts, choosing a high-yield savings account helps secure cash and earn competitive rates.

When considering where to store your money, high-yield savings accounts offer security and accessibility. Interest rates are crucial, especially with rates expected to drop. These accounts are ideal for short-term savings goals, though long-term investments may offer greater returns. Savings accounts are FDIC-insured and low-risk.

SoFi Savings offers up to 4% APY with a 0.70% boost for new account holders. Terms apply, and rates are subject to change. High-yield savings accounts remain a popular choice for secure and competitive cash storage.

Read more at Yahoo Finance: Best high-yield savings interest rates today, February 4, 2026 (Earn up to 4% APY)