Best high-yield savings interest rates today, September 23, 2025 (Earn up to 4.25% APY)

Core Insights - High-yield savings account rates have been declining, yet some accounts still offer rates above 4% APY, necessitating research to find competitive offers [1][2] - The average interest rate for traditional savings accounts is currently 0.40%, while the highest rate available is 4.25% APY from Poppy Bank as of September 23, 2025 [2] Historical Trends - Savings account interest rates have varied significantly over the past decade, with rates between 0.06% to 0.10% from 2010 to 2015 due to the 2008 financial crisis and the Federal Reserve's near-zero target rate [3] - From 2015 to 2018, rates began to rise gradually but remained low historically; the COVID-19 pandemic in 2020 caused another sharp decline, bringing rates down to around 0.05% to 0.06% by mid-2021 [4] - Following the pandemic, rates recovered due to the Fed's interest rate hikes in response to inflation, but a recent rate cut at the end of 2024 has led to declining deposit rates [5] Account Suitability - High-yield savings accounts are suitable for short-term savings goals such as emergency funds or vacations, offering easy access to funds compared to other deposit accounts like money markets and CDs, which may have withdrawal restrictions [6] - For long-term savings goals, traditional savings accounts may not provide sufficient returns compared to market investments [5]