Don’t Let Your Savings Nap — Earn 5% Instead

If your money is sitting in a traditional savings account earning under 1% APY, you’re leaving potential earnings on the table. Today, high-yield savings accounts (HYSAs) are offering interest rates of 4.25% to 5.00% APY, allowing savers to earn more with virtually no risk.

Why Are Rates So High Right Now?

Due to the Federal Reserve holding interest rates at elevated levels to fight inflation, many online banks are passing on these higher returns to consumers. This is good news for savers looking to grow their funds while staying fully liquid and FDIC-insured.

Top High-Yield Savings Accounts (as of May 30, 2025):

🏦 Varo Bank

• APY: Up to 5.00%

• Requirements: Direct deposit of at least $1,000/month and positive balance.

• Details: Tiered APY structure. You earn the top rate only after meeting requirements.

• Pros: Mobile-first experience, no monthly fees.

🏦 FitnessBank

• APY: Up to 5.00%

• Requirements: Average 12,500+ steps/day via fitness tracker to earn the top rate.

• Details: $100 minimum deposit; balances must stay above $100.

• Pros: Innovative concept encouraging physical activity; unique niche.

🏦 Axos Bank – High Yield Savings

• APY: 4.66%

• Requirements: No required minimum deposit to open.

• Details: Best rates for balances under $25,000.

• Pros: Strong mobile and online banking features; no maintenance fees.

🏦 LendingClub High-Yield Savings

• APY: 4.40%

• Requirements: No minimum balance.

• Details: Online-only bank, easy setup.

• Pros: Competitive rate with no strings attached.

🏦 Pibank

• APY: 4.60%

• Requirements: No minimum deposit.

• Details: Available nationwide; must open account online.

• Pros: No monthly fees; strong digital interface.

  
  

How Much Could You Earn?

Let’s say you deposit $10,000 into a HYSA earning 4.60% APY. After one year, you’d earn approximately $460 in interest—compared to just $42 in a typical savings account earning 0.42% APY (national average according to FDIC data).

What to Watch Out For

• Introductory rates: Some banks offer temporary promotional rates, which may drop after a few months.

• Balance tiers: Not all balances earn the top APY—check if rates drop after a certain threshold.

• Accessibility: Online banks typically offer higher rates but less face-to-face support.

• Withdrawal limits: While federal limits on savings withdrawals were lifted in 2020, some banks still impose limits (typically 6 per month) on transfers or outgoing payments.

In an environment where inflation eats away at purchasing power, parking your money in a high-yield savings account is one of the easiest ways to boost your returns without increasing risk. These accounts are ideal for emergency funds, short-term goals, or even just a smarter holding spot for idle cash.

Before opening an account, make sure the terms align with your habits—especially if certain behaviors are required to earn the highest rate. And above all, ensure the bank is FDIC-insured so your money remains protected.