Remember when your savings account earned almost zero interest? Those days are finally fading. In 2025, high-yield savings accounts (HYSAs) are making headlines across the United States and Europe, offering interest rates that savers could only dream about a couple of years ago. Many top HYSAs in the U.S. now pay around 4–5% APY (annual percentage yield), and even in Europe some banks are offering 3–4%+ on savings deposits – a huge leap from the near-0% rates of the past decade. This surge in savings yields is driven by a unique mix of economic trends – from rising central bank rates to the after-effects of inflation – and it’s changing how people manage their money on both sides of the Atlantic.
In this article, we’ll break down what high-yield savings accounts are, the 2025 interest rate and inflation developments fueling their rise, some trending high-yield savings products and neobanks to know, and simple tips for choosing a good HYSA. By the end, you’ll see why so many savvy savers in the US and Europe are turning to these accounts to make their money work harder. (Along the way, we’ll also point you to additional resources, like our Saving Money guides and Budgeting Tips on StackCents, to help you maximize your finances.)
What Is a High-Yield Savings Account (HYSA)?
A high-yield savings account is basically a savings account that offers a much higher interest rate than a typical savings account at a big traditional bank. In other words, it’s an account that lets your cash earn more money just by sitting there. For example, while a regular savings account at a large brick-and-mortar bank might pay close to 0% or only fractions of a percent in interest, a high-yield savings account could be paying 2%, 3%, or even around 4% APY. In 2025, the national average savings rate in the U.S. is still under 0.6%, yet the top high-yield accounts are offering rates around 4.4% APY – roughly seven times the average. That’s a dramatic difference.
How do HYSAs offer so much more? The banks behind these accounts (often online banks or fintech companies) have lower overhead costs – no big branch networks or legacy expenses – so they can pass on more interest to customers. They’re also motivated to attract deposits in a competitive rate environment. Importantly, high-yield savings accounts are just as safe as traditional savings accounts as long as they’re with a reputable institution. In the US, legitimate HYSAs are typically FDIC-insured up to $250,000, meaning your money is protected by the government (so you won’t lose it even if the bank fails). In Europe, banks similarly come with national or EU deposit guarantees (usually protecting up to €100,000 per depositor) to keep your savings secure. In short, an HYSA gives you the same peace of mind as a normal savings account – liquidity and safety – but with interest rates that actually make a difference for your balance.
2025 Interest Rates and Inflation: A New Era for Savers
Why are high-yield savings accounts suddenly so attractive in 2025? The answer lies in the broader interest rate and inflation trends of the past few years. Both the U.S. Federal Reserve and the European Central Bank (along with the Bank of England and others) spent much of 2022–2023 raising interest rates sharply to combat soaring inflation. Those moves have finally trickled down to consumers in the form of higher deposit rates.
By early 2025, inflation has started to cool off, but it’s still higher than central bank targets, so rates remain elevated. In the U.S., annual inflation fell to about 2.4% as of March 2025 – much lower than the peaks seen in 2022, but still not far from the Fed’s 2% goal. Europe has seen a similar trend: eurozone inflation is around 2.2–2.5% in spring 2025, down from the high levels of the previous year. Because inflation is almost tamed but not quite at target, central banks have been cautious. The Federal Reserve, for instance, kept its benchmark rates steady in early 2025, maintaining the highest interest levels seen in decades. The result? Savings yields are at historic highs. Banks and credit unions need to offer attractive rates to keep deposits, so many HYSAs are paying out four to five percent interest. Just a year or two ago, those kinds of rates on savings would’ve been unthinkable for most people.
For context, a typical savings account in 2021 might have paid 0.01%–0.05% APY (essentially nothing). Fast forward to 2025, and getting 4%+ on an HYSA is relatively common. Some of the very best accounts even flirted with 5% APY in late 2024 before leveling off (as of May 2025, ~4.3–4.5% is more typical for top-tier offers). This jump in rates represents a new era for savers: finally you can earn a decent return on cash without locking it away for years or taking on investment risk.
It’s not just an American story, either. European savers are seeing the best yields in many years. The European Central Bank’s rate hikes pushed many Euro-area banks to raise their deposit rates from near-zero to 2% or more. While European savings accounts traditionally lag the U.S. in interest, fintech marketplaces like Raisin have made it easier to find 3%–4% APY equivalents in Europe by shopping around. After a decade of ultra-low rates, 2025 is a refreshing change – banks are actually competing for your savings now.
(Of course, it’s worth noting that if inflation keeps dropping and economies slow, central banks could cut rates later in 2025, which might cause HYSA yields to dip. But for now, interest rates are elevated – and savvy savers are taking advantage.)
Why Savvy Savers Are Turning to HYSAs in 2025
With interest rates up and economic uncertainty in the air, high-yield savings accounts have become the go-to move for a lot of people. Here are a few reasons why more savers are flocking to HYSAs in 2025:
- Beating (or at least matching) Inflation: For the first time in recent memory, the interest from a savings account can actually keep pace with inflation. Earning ~4% on your cash when inflation is ~3% means you’re preserving your purchasing power, not quietly losing money by staying in cash. This is a big deal – during the past decade, leaving money in a standard savings account meant it steadily lost value after inflation. In 2025, an HYSA can finally give you a real return (or close to it), which is a huge incentive for savers who are wary of risk in stocks or other investments.
- Safety in Uncertain Times: The economic outlook has been a bit cloudy, with talk of possible recessions or market volatility. High-yield savings accounts offer a safe harbor for your money. Unlike investing in the stock market (which can be unpredictable in the short term), an HYSA balance doesn’t fluctuate – it only goes up as you earn interest. Savers find comfort in knowing their emergency fund or short-term savings are not only safe and accessible, but also growing steadily. In 2025, that steady 4% yield feels like a win when other parts of the economy are uncertain.
- Easy and Accessible: Opening a high-yield savings account is generally quick and easy, especially with the rise of online banking. You can open an account with just a few clicks, link it to your existing checking account, and start earning high interest immediately. Fintech apps and neobanks have made the process user-friendly – often you don’t even have to leave your couch to get an account set up. This ease of access means there’s low friction to move your money into a better-paying account. People are realizing it’s not hard to switch to an HYSA, so why settle for 0.1% when you can get 4%?
- Tech-Savvy Features: Many high-yield accounts come from online banks or neobanks that offer great digital banking features. Mobile apps, automatic savings tools, goal trackers (like virtual “buckets” or sub-accounts for different savings goals) are often built-in. Savers, especially younger generations, appreciate that they can manage their savings entirely from a smartphone. In Europe, for example, some digital banks integrate savings interest within everyday banking apps (Revolut, N26, etc.), making the experience seamless. It’s cool to see your balance tick up daily with earned interest – and that gamification of savings is motivating more people to stash money away.
- Competition and Awareness: HYSAs have been around for a while, but they’re especially in the spotlight now. Banks are advertising their high rates, comparison sites are listing “best savings accounts” every week, and personal finance influencers on YouTube and social media are spreading the word. In the US, for instance, you might hear that you can get 10x the national average interest by switching to an online savings account. In Europe, news of fintech platforms offering much better rates than local banks is making the rounds. All this buzz means savers are more aware than ever that they have options – and they’re moving their money accordingly. It’s almost become a trend: your friend mentions they opened a high-yield account, and next thing you know you’re opening one too.
In short, the combination of better returns with no added risk or hassle has made high-yield savings accounts incredibly popular in 2025. It’s a smart, sensible move in a time when everyone’s looking for stability and growth.
Trending High-Yield Savings Accounts and Neobanks to Know
One of the great things about the current environment is that you have choices – plenty of banks and fintechs are vying for your savings. Here are some of the notable high-yield savings options making waves in 2025, in both the US and Europe:
🔹 United States – Online Banks Leading the Pack: In the U.S., a number of well-established online banks and credit unions offer top-tier HYSAs. For example, Ally Bank (a pioneer in online banking) and Capital One 360 (the online arm of Capital One) are popular choices known for competitive rates and no monthly fees. These accounts often hover around the mid-3% to 4% APY range, depending on the Fed’s moves. In fact, Capital One’s 360 Performance Savings was recently highlighted as one of the best available accounts. But it’s not just the big names – some lesser-known banks are pushing rates even higher. According to Bankrate, an account from Openbank was offering about 4.40% APY as of May 2025, which is roughly seven times the U.S. national average savings rate of ~0.59%. Other banks like Bread Savings, BrioDirect, Bask Bank, and Synchrony Bank all have APYs in the ~4% range. For instance, Synchrony’s high-yield savings at around 4.00% APY is nearly 10 times higher than what you’d get at a typical brick-and-mortar bank. The key takeaway: if your current bank in the U.S. is still paying something like 0.4% or 0.5%, it’s not hard to find an FDIC-insured alternative paying close to 4% or more.
🔹 Fintech Marketplaces and Neobanks (US): Aside from direct banks, fintech platforms are also giving U.S. savers more ways to earn. A platform called Raisin (originally from Europe) has launched in the U.S., partnering with banks to offer high-yield accounts through a single online marketplace. For example, Raisin’s U.S. portal features accounts like Western Alliance Bank’s HYSA at ~4.25% APY (often with bonus offers for new deposits). This lets savvy savers easily shop around for the best rate without juggling multiple bank logins. Additionally, fintech-oriented institutions like SoFi, Marcus by Goldman Sachs, and credit union alternatives like DCU have been in the mix – many of these offer strong rates plus modern app features. It’s worth noting that even some big banks (think Chase, Bank of America) have started to slightly raise savings rates or offer separate “high yield” products, but those still lag well behind the online banks. The best deals are firmly in the online realm.
🔹 Europe – Neobanks and Digital Platforms on the Rise: Across Europe, the high-yield savings trend is gaining momentum through digital banks and platforms. A few years ago, European savers had almost no way to get significant interest on liquid savings (especially in the Eurozone, where rates were negative for a while!). But 2025 is different. Neobanks – app-based challenger banks – and fintech services now offer attractive rates on euros, pounds, and other currencies. For example, N26, a popular German-based neobank used across the EU, offers around 2.25% annual interest on its Instant Savings for premium (Metal plan) customers. Similarly, Dutch-founded bunq gives up to 2.51% on its Easy Savings account (with weekly interest payouts). Even the multi-currency app Revolut is providing interest for account holders: up to about 2.7% AER for those on certain paid plans. These rates might seem modest compared to U.S. 4%+ levels, but they represent a huge improvement from the near-zero environment Europeans had for years. And remember, inflation in Europe has been higher – so earning ~2-3% interest still significantly closes the gap.
🔹 Marketplaces and Cross-Border Saving (EU): Perhaps the biggest game-changer in Europe is the ability to easily shop around across countries for the best savings rates. Platforms like Raisin (and similar ones like Wise or Revolut’s savings vaults) let European savers deposit money in banks from various EU nations, not just their home country. Through Raisin’s marketplace, for instance, you can find certain European banks (often smaller or online-focused ones) offering around 3% to 4% APY on euro savings. These accounts are fully EU deposit-guaranteed up to €100k, just like a domestic account, but they might be in, say, an Estonian or Spanish bank that’s keen for new deposits. This kind of cross-border shopping was cumbersome in the past, but now it’s user-friendly via a single app/website. As a result, a German saver or Italian saver (or anyone in the EU) can take advantage of, say, a 3.5% offer from an Irish bank or a 4% term deposit in a French bank, with just a few clicks. Even in the UK (which has its own banking market), high-yield easy-access accounts around 3-4% have emerged as the Bank of England raised rates. All told, Europeans are finally seeing meaningful interest on their savings, and they have a growing list of fintech tools and neobanks to thank for it.
🔹 A Quick Note on Terms: When comparing accounts, keep an eye on any special conditions. Some headline rates might be “introductory” or require a certain subscription level (for example, N26’s 2.25% is for premium members, and some EU banks have caps on the balance that earns the top rate). Still, even standard offerings around 2% with full flexibility are plentiful in Europe now. And if you’re willing to lock your money for a bit, interest rates on short-term fixed deposits (CDs/time deposits) are even higher – but that’s another story. The bottom line is that on both continents, choice is abundant. Savers are no longer stuck settling for scraps; you can pick an HYSA or similar product that fits your needs and earn a healthy return.
Tips for Choosing a Good High-Yield Savings Account
With so many options out there, how do you decide which HYSA is right for you? Here are some simple tips to help you choose a high-yield savings account like a pro:
- Compare the APY (Annual Percentage Yield): The interest rate is king. Look for a competitive APY but also check how it’s structured. Is it a promotional rate that expires after a few months? Is it tiered (meaning you only get the highest rate on balances above a certain amount)? Ideally, pick an account with a consistently high APY and no tricky requirements. Even a difference of 0.5% can add up over time, so it’s worth shopping around. Online comparison tools and sites (like Bankrate, NerdWallet, or in Europe, platforms like Raisin or local bank comparison sites) can help highlight the top rates.
- Watch out for Fees and Minimums: A good HYSA should not charge monthly fees or force you to maintain an unrealistic minimum balance. The goal is to grow your money, and fees will only eat into that growth. Fortunately, most online high-yield accounts have zero monthly fees and low minimum deposit requirements – make sure that’s the case with yours. If an account requires, say, a $10,000 minimum to get the high rate, consider whether that fits your situation. There are plenty of options that pay great rates even on small balances.
- Ensure Your Money is Insured: This is non-negotiable. Only choose savings accounts that are FDIC-insured (if in the US) or covered by an official deposit insurance scheme (if in Europe or UK). Deposit insurance means your money (up to the coverage limit) is protected by the government if the bank were ever to fail. In the US, the standard coverage is $250,000 per depositor, per bank. In the EU, it’s €100,000 per depositor, per bank, and in the UK it’s £85,000 – different amounts, same idea of protection. Virtually all reputable banks and credit unions carry this insurance, but double-check if you’re looking at a newer fintech. Pro tip: if you use a marketplace like Raisin that spreads money across multiple banks, you can actually get insured coverage on each account separately (e.g. €100k in Bank A + €100k in Bank B, etc.), which can be a way to insure well above a single-bank limit.
- Consider Access and Convenience: Think about how you’ll use this savings. Is it purely an emergency fund that you hope not to touch, or will you need to dip in occasionally? Many HYSAs are online-only, meaning you transfer money to your regular checking account when you want to use it (which can take a day or so). Others, especially those from fintech apps, might come with an ATM card or instant transfer abilities. There’s even at least one HYSA (offered by a credit union) with an ATM card and 5%+ interest, combining high yield with immediate access. Figure out what balance of high yield vs. access is right for you. Most people are fine with an online transfer setup given the trade-off of a much higher rate.
- Look at the Bank’s Reputation and Features: You want a smooth experience, so check out the bank’s or app’s customer service and tech features. Is their mobile app reliable? Do they have 24/7 support or at least a good help center? Since online banks don’t have branches, you’ll be dealing with their website or app for everything – make sure it’s well-reviewed. The good news is many leading online banks pride themselves on easy-to-use apps and responsive support. Also, check for extra features that might matter to you, like mobile check deposit, sub-accounts for organizing savings goals, or the ability to set up automatic transfers from checking (automation can be a big help in building your savings habit!).
- Stay Alert on Rate Changes: High-yield savings accounts have variable rates, which means the bank can change the APY in response to market conditions. In 2025, rates are high; in fact, banks have been holding rates steady so far. But if the Federal Reserve or European Central Bank starts cutting rates later in the year (which some predict), banks will likely lower HYSA rates too. That’s normal – just be aware. The tip here is to monitor your rate every so often. If your bank’s rate slips and is no longer competitive, don’t be afraid to move your money to a better account. Loyalty is nice, but an extra 1% interest on your nest egg is nicer! Fortunately, moving savings between banks is easier than ever with online setups. Consider it an occasional check-up: ensure your HYSA is still among the top offerings. (And hey, we at StackCents will be keeping an eye on trends, so you can always check our latest articles for updates.)
By following these tips, you’ll be well positioned to choose an HYSA that fits your needs and maximizes your interest earnings. Remember, the goal is to let your savings grow effortlessly – so pick an account that makes that as simple and safe as possible.
