Best high-yield savings interest rates today, October 28, 2025 (Earn up to 4.25% APY)

Core Insights - High-yield savings account rates are declining, but some accounts still offer rates above 4% APY, necessitating research for 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 October 28, 2025 [2] Historical Trends - Savings account interest rates have seen significant fluctuations over the past decade, with rates as low as 0.06% to 0.10% from 2010 to 2015 due to the 2008 financial crisis and subsequent Federal Reserve actions [3] - From 2015 to 2018, rates gradually increased 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] - Since mid-2021, rates have recovered due to Federal Reserve interest rate hikes in response to inflation, but recent cuts in the federal funds rate have 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][6]