As the Fed pauses rates, some banks are keeping high-yield savings accounts at just under 5% interest

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• The Federal Reserve chose to neither raise nor lower its rates at the January 28-29 Fed meeting.
• Because interest rates have stayed steady, you can still find savings accounts with almost 5% APY.
• Now is a good time to open a high-yield savings account so you can grow your savings.

The Federal Reserve held interest rates steady at the January 28 to 29 Fed meeting, ending its late 2024 streak of lowering rates.

While lower interest rates might still come in the future, now is a great time to open a high-yield savings account to take advantage of the Fed decision. The best high-yield savings accounts currently offer rates between 4.50% and 5.00% annual percentage yield.

Why you should open a high-yield savings account now

The Federal Reserve choosing to keep interest rates steady means that interest rates aren't likely to drop by much before the Fed's next meeting. The next Fed meeting is on March 18 and 19, so you'll have more than a month of relatively stable interest rates to profit from until then.

And while the Federal Reserve previously indicated that interest rate drops are on the horizon, President Donald Trump's recent actions could change its plans. Trump recently instituted tariffs against Canada, Mexico, and China; these tariffs could raise inflation, and the Federal Reserve might feel the need to raise interest rates in response to help ease inflation.

This means that, depending on your specific financial goals, you might not necessarily want to lock yourself into a specific interest rate right now like you would if you opened a certificate of deposit or another type of fixed-rate account or investment.

A variable interest rate account, like a savings account or a money market account, can let you take advantage of current high interest rates without having to commit to a specific rate for months or years.

Which savings accounts offer the best interest rates

To help you find the right savings account for you, we've provided a list of some of the best nationwide savings accounts you can open. We've included both high-yield savings accounts and money market accounts, which are a specialized deposit account that frequently offers additional liquidity through debit cards, ATM cards, and checks.

All of these accounts are offered by online banks and credit unions, which tend to offer higher rates than traditional banks.

When a savings account is a good fit for your funds

High-yield savings accounts can be a great place to keep the money you want easy access to or don't want to risk losing, like an emergency fund. They can also be a good place for short-term savings goals.

While high-yield savings accounts can be a great way to make a bit of extra money on your savings or emergency fund, they aren't always the perfect fit for every financial goal.

They're not quite as good of a fit for long-term goals, such as saving for retirement. A retirement plan will let you earn more long-term with low-risk investments.

And while current high-yield savings account rates are high compared to historical average savings account rates, you'll likely be able to get a higher return on investments, although you have to be prepared to lose money, too.

If the idea of locking in an interest rate is interesting to you, you might prefer a CD. Right now, you'll find higher short-term CD rates vs. long-term CD rates, but you can still find long-term CD rates as high as 4.30%.