Federal Reserve rate cuts have led to declining deposit rates, making it crucial to find high-yield savings accounts. These accounts offer up to 4% APY, significantly higher than traditional savings accounts. Currently, the highest savings rate is 4% APY from SoFi. Deposit rates are influenced by the federal funds rate set by the Federal Reserve, with interest rates falling after recent rate cuts. Experts predict further rate cuts, making high-yield savings accounts a safe bet. Factors to consider when choosing a high-yield savings account include interest rates, goals, accessibility, and security. High-yield savings accounts offer historically high rates, making them ideal for short-term savings goals. These accounts are insured by the FDIC and offer a low-risk option for storing cash. Earn up to 4% APY on SoFi Savings by opening a new account and enrolling in SoFi Plus. Rates are subject to change, terms apply.

Read more at Yahoo Finance: Best high-yield savings interest rates today, December 31, 2025 (Earn up to 4% APY)