PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMScpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8xLjEnKTtteWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMycpOzwvc2NyaXB0Pg==Jill Slattery is the VP of Content for the Hearst E-Commerce team. She previously served as the Chief Content Officer of Livingly Media. Email her at jill.slattery@hearst.com. Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at lauren.williamson@hearst.com.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.The financial news during most of 2023 has been, dare we say, stressful: a contracting housing market, rising interest rates on credit card debt, and oh yeah, a persistent threat of recession. But there’s a flip side to the news: Interest rates on high-yield savings accounts are rising in response to the Federal Reserve’s streak of rate hikes. While the Fed paused its string of rate hikes at the September meeting, it's expected to pick back up at either the November or December meeting — and it's indicated that even once the rate hikes end for good, it will keep rates "higher for longer." The Fed doesn’t set interest rates on consumer accounts, but its actions influence them. And the payoff for consumers has been big: Some high-yield savings accounts are offering rates above 5.00%, a return that’s unheard of in recent memory.Yet most people aren’t taking advantage of these higher rates. Nearly 93% of Americans are earning less than 4% interest on their savings account, according to a recent survey by Bankrate. If you’re not one of them, you’re probably leaving money on the table. Consider this math:Traditional savings account: The average interest, otherwise known as the annual percentage yield (APY), on a traditional savings account is 0.58% as of October 2, according to Bankrate’s weekly survey. If you leave $10,000 in a traditional savings account for 10 years at this rate, it would earn $597 in interest. (Worth noting: Even though 0.53% is the average, it’s not unusual for the big banks to offer 0.01% APY on traditional savings accounts, which would result in $10 of growth in this scenario.)High-yield savings account: A high-yield savings account that offers a 5.00% APY, on the other hand, would net you $6,470 over 10 years, bringing the total amount of money in the account to $16,470. Of course, in the real world, you would likely put regular deposits in the account, so the grand total would ultimately be much higher.The caveat in both of these examples is that interest rates on savings accounts aren’t fixed, so there will be some fluctuations over time. However, the long-term performance of high-yield savings accounts has generally been stronger than traditional savings accounts. And, as rates change, you can always move your money to a different savings account.What is a high-yield savings account?A high-yield savings account is a type of deposit account that is federally insured through the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). It earns a much higher interest rate compared to traditional savings accounts.In many cases, online banks offer high-yield savings accounts, usually in an effort to gain new customers. Most of these accounts will also offer the same features as regular savings accounts, such as monthly maintenance fees (if any) and the ability to transfer money easily to and from a linked checking account. Here’s how high-yield savings accounts work: Once you make a deposit, it’ll earn interest. Depending on your financial institution, interest can be compounded and deposited into your account at different intervals such as daily, weekly, or monthly. Some banks may also require that you keep a minimum amount on deposit in order to earn interest. Certificates of deposit, or CDs, are also a good option for higher interest rates, but you have to be prepared to leave your money in place for a while.Current savings account ratesAccording to the most recent data provided by Bankrate, these are the most current interest rates for savings accounts:The top savings account interest ratesWe dug through the APYs offered on different savings accounts right now, and these are the accounts we found that earn 5% or more in interest: Total Direct Bank: 5.26% APYCFG Bank: 5.25% APYNewtek Bank: 5.25% APYPopular Direct: 5.25% APYUFB Direct: 5.25% APY Bread Savings: 5.15% APYIs a high-yield savings account or a CD right for you?If you have short-term savings goals — such as taking a summer vacation or making some home improvements — a high-yield savings account is probably your best option. Different banks offer different interest rates and are always competing for customers. So even though it may seem time-consuming to shop around or tedious to switch banks, a higher interest rate can add up big time over the years. As mentioned earlier, though, the one major caveat on high-yield savings accounts is that rates on them aren’t fixed. That means they can go down just as easily as they can go up.For longer term savings goals, such as putting a downpayment on a house, a CD may give you the biggest bang for your buck. A CD is a type of savings account offered by a bank or credit union that typically comes with a fixed interest rate that's higher than what's offered through a regular savings account. The catch is that account holders need to commit to depositing a fixed amount of cash for an agreed-upon term, which can range from a few months to a few years. The cash in a CD — including the principal and earned interest — can only be withdrawn when the CD matures. You also can’t add money to a regular CD after the initial deposit.PGRpdiBjbGFzcz0iaW5mb2dyYW0tZW1iZWQiIGRhdGEtaWQ9ImU2MzIxMjdlLTZhZWUtNDBhMi1iNjNiLTgzYmQ0Yjc1MTQzYiIgZGF0YS10eXBlPSJpbnRlcmFjdGl2ZSIgZGF0YS10aXRsZT0iV0VFS0xZIENEIHJhdGVzIj48L2Rpdj48c2NyaXB0PiFmdW5jdGlvbihlLGksbixzKXt2YXIgdD0iSW5mb2dyYW1FbWJlZHMiLGQ9ZS5nZXRFbGVtZW50c0J5VGFnTmFtZSgic2NyaXB0IilbMF07aWYod2luZG93W3RdJiZ3aW5kb3dbdF0uaW5pdGlhbGl6ZWQpd2luZG93W3RdLnByb2Nlc3MmJndpbmRvd1t0XS5wcm9jZXNzKCk7ZWxzZSBpZighZS5nZXRFbGVtZW50QnlJZChuKSl7dmFyIG89ZS5jcmVhdGVFbGVtZW50KCJzY3JpcHQiKTtvLmFzeW5jPTEsby5pZD1uLG8uc3JjPSJodHRwczovL2UuaW5mb2dyYW0uY29tL2pzL2Rpc3QvZW1iZWQtbG9hZGVyLW1pbi5qcyIsZC5wYXJlbnROb2RlLmluc2VydEJlZm9yZShvLGQpfX0oZG9jdW1lbnQsMCwiaW5mb2dyYW0tYXN5bmMiKTs8L3NjcmlwdD4=As with savings accounts, it’s best to shop around to find the right CD for your needs. You should think about how long you want your money to be held in the account (there’s a withdrawal penalty fee if you take it out ahead of time) and whether there are any minimum deposits required to open an account. The bottom lineA high-yield savings account is a low-effort way to make sure that your money is always working for you. The Fed has indicated it will continue raising interest rates this year, which means high-yield savings account interest rates will likely increase more, too. A little bit of research into the best rates will prevent you from missing out on that boost.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.