Key takeout
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High-yield savings accounts continue to offer strong APYs of over 4%.
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Moody’s US government credit rating downgrade and a small number of major banks could drive the Federal Reserve decision not to change fees in June.
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At least one Fed official is leaning towards just one rate cut this year at this point.
Annual yield (APY) has been revealed to be one of the few winners in today’s uncertain economy.
The US economy collided with another road rise as Moody’s rating downgraded the US government’s credit rating from AAA to AA1, raising the rise in government debt and interest payments at a much higher level than other similarly assessed countries. It also downgraded five large US banks, including Bank of America, JPMorgan Chase and Wells Fargo. These downgrades are expected to reduce investors’ sentiment, particularly regarding US Treasury securities, which investors can now interpret as accompanies increased risk.
However, these macroeconomic headwinds may actually not have changed during the June meeting, as most experts expect, as the Federal Reserve will leave a benchmark federal funding rate (currently in the 4.25-4.5% range). This means that high-yield savings accounts (HYS) may continue to offer robust APY for a while, even if they lean down a bit.
What is the best savings account fee today?
HYSAS continues to deliver higher than average returns compared to what it offered just 10 years ago. That’s good news for savers. Because robust yield means your money will grow faster with HYSA over time. The most competitive yields in the market today exceed APY over 4%.
This week’s top-notch yields are provided by OpenBank, Santander Bank’s digital division. The only downside is that you need $500 to open an account. If you don’t have that much cash on hand, you can consider saving on bread. It continues to offer robust APY and much lower minimum deposits.
Note: Annual yield (APY) is as of May 23, 2025. The APY for some products may vary by region.
Experts don’t expect fee cuts during the Federal Reserve June meeting
The Federal Reserve’s June Federal Open Market Committee meeting is soon approaching – scheduled for June 17th and 18th, but the majority of experts do not expect the central bank to cut interest rates in mid-June.
In fact, at least one Fed employee, Atlanta Fed President Rafael Bostic, in an interview with CNBC, signaled that the Fed would “have to wait three to six months” to see how the economy shakes following the Moody’s downgrade of the US government. He also said, “We’re leaning towards more cuts this year.”
If fees are not cut in June, we can expect HYSA yields to remain relatively in place, although they may still see slight mites like last month. Just about a month ago, the highest rate was APY at 4.45%, but now it has fallen to 4.40%.
The Fed is in a retention pattern until there are indications of the job market getting worse or something else in the economic data that forces people to cut interest rates. Savers continue to enjoy attractive returns that outweigh the inflation rates of high-yield savings accounts.
– Greg McBride, CFA | Bankrate Chief Financial Analyst
Is it still a good time to open a high-yield savings account?
Yes – Rates are still relatively high compared to recent rates, making it a wise time to take advantage of better returns on savings.
Be aware of rate changes as your savings account offers a variety of APYs that can change at any time. The Fed is not expected to cut fees, but if it takes place during the June meeting, be prepared to expect many banks and credit unions to checkmark downwards.
Conclusion
Despite the continued uncertainty surrounding economic headwinds, tariffs and recent credit downgrades, HYSA continues to offer attractive returns above APY of over 4%, which continues to outperform inflation. HYSA, especially those without fees, reasonable minimum deposits, flexible withdrawal options, and those without HYSA, remain the best time to open or maintain HYSA. Prices may gradually decline, but experts expect the Federal Reserve to maintain current interest rates in the near future and maintain these favorable savings terms for the time being.