Best savings account rates reach 5% APY as average stays low

Keeping cash in a standard savings account is costing savers hundreds of dollars a year in lost interest. On a $10,000 balance, the national average yield of 0.58% APY produces about $58 annually, while Axos Bank’s 4.21% APY would pay roughly $421, a gap of about $363.

That spread is the clearest sign of how much money sits trapped in low-yield, legacy accounts. Bankrate said its best high-yield savings accounts were paying around 4% APY as of May 4, 2026, far above the national average. NerdWallet’s May 2026 roundup pushed the ceiling even higher, with Varo Bank offering 5.00% APY on balances up to $5,000 when certain deposit requirements are met. NerdWallet also named Vio Bank at 4.03% APY as the best option among accounts with low minimum deposit requirements.

The top end of the market is still changing quickly. CNBC Select said its best high-yield savings account roundup was updated Friday, May 1, and the rates it was tracking reached up to 5.00% APY. In another CNBC Select article, the strongest returns it was seeing were around 4% APY. That range shows how much consumers can gain by moving money out of accounts that have barely budged.

The difference is especially important for households that keep emergency savings parked where they already bank. Bankrate said many top high-yield savings accounts come from FDIC banks or NCUA credit unions and often carry no fees and low minimum deposit requirements, but the headline APY still comes with conditions. Varo’s 5.00% rate applies only to balances up to $5,000, and CNBC Select noted that APYs can fluctuate as the Fed rate changes. On that capped balance, the jump from 0.58% to 5.00% is worth about $221 a year.

The broader policy backdrop points the same way. The Federal Reserve Board’s H.15 Selected Interest Rates release was last updated Friday, May 1, and the Fed says monetary policy is aimed at maximum employment, stable prices and moderate long-term interest rates. Bankrate expects savings and money market APYs to keep drifting lower in 2026, with a projected national average high of 0.51% APY. For savers, that leaves a simple arithmetic test: staying put may feel easy, but the cost is measured in real dollars.