High-yield savings accounts offer rates up to 4% APY, a much higher return than traditional savings accounts. As of January 7, 2026, SoFi offers the highest rate at 4% APY. The Federal Reserve’s rate cuts have led to declining deposit rates, making high-yield savings accounts a smart option.

Historically, savings account interest rates have been high, but now the average rate is just 0.39%. When the Fed lowers its target rate, deposit rates usually follow suit. Experts predict further rate cuts, making high-yield savings accounts an attractive option for earning better returns on savings.

Considerations for choosing a high-yield savings account include interest rates, goals, accessibility, and security. While savings accounts offer lower returns than the stock market, they provide a secure place for short-term savings with FDIC insurance and easy access to funds. Compare rates to maximize your savings growth.

Read more at Yahoo Finance: Best high-yield savings interest rates today, January 7, 2026 (Earn up to 4% APY)