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Updated September 26, 2026
I wrote this guide in August, when savings rates had been falling since May. On September 16 the Federal Reserve raised its benchmark rate for the first time since July 2023, to 3.75%–4.00%. That turns around the direction this post was built on. Online banks tend to pass increases on to savers faster than big banks do, so the August rates below are more likely to be a floor now than a ceiling. The advice that changes most is on CDs, and that section is rewritten. The account-by-account rates are still August’s and have not been re-checked.
Through the summer of 2026, high-yield savings rates slid: by August Marcus was at 3.40%, Ally was in the low-3% range, and the “up to 5% APY” headlines from a couple of years ago were mostly gone. That never meant there was nothing worth moving cash into. A handful of accounts still pay far more than a traditional bank’s 0.01%. Here is what was available, and one option worth skipping entirely.
Why the rate you see advertised keeps changing
Savings account APYs move with the broader rate environment. Through August 2026 that meant falling rates: a figure that was accurate on a comparison site in the spring could be half a point lower by late summer. Since the Fed’s September 16 increase the direction has turned, and advertised rates can move just as fast upward. None of the figures below should be treated as locked in. Check the provider’s own rate page on the day you open an account.
| Account | APY (as researched) | Minimum | Note |
|---|---|---|---|
| Capital One 360 Performance Savings | ~4.10% | $0, no monthly fee | No-minimum accounts holding a rate this high are getting rarer |
| Climate First Bank | ~4.01% | Varies by account | Smaller, mission-focused bank; confirm FDIC coverage terms |
| Newtek Bank | ~4.20% | — | Not accepting new applications as of July 31, 2026 |
| Short/mid-term CDs, general market | 4.00–5.00% | Varies by bank | Fixed for the term, whichever way rates go next |
Capital One 360 still clears 4% with no catch
Capital One’s Performance Savings account has no minimum balance and no monthly fee, and was paying around 4.10% APY in August per rate-tracking sources, which is very competitive for an account with zero requirements attached. It’s a reasonable default for someone who wants a better rate than their checking bank’s savings account without shopping around every account for the absolute top of the market.
Climate First Bank pairs a decent rate with a mission angle
Climate First is a smaller, sustainability-focused bank that was paying around 4.01% APY in August, appealing specifically to someone who wants their deposits to align with where the bank actually lends. It’s a real bank, FDIC-insured, not a fintech wrapper, but as a smaller institution, it’s worth confirming coverage details and account terms directly before moving a large balance in, the same diligence you’d apply to any less well-known bank.
Newtek Bank looks great on a rate comparison chart and then goes nowhere
Newtek’s advertised rate in August, around 4.20% APY, was the highest of the group here. It’s also not available: Newtek stopped accepting new account applications as of July 31, 2026. If you find it listed on a rate-comparison site without that caveat, that listing is stale. Worth mentioning specifically so you don’t spend twenty minutes filling out an application that goes nowhere.
A CD trades flexibility for a locked-in number
In August, short and mid-term CDs were running 4.00% to 5.00% APY depending on the bank and the term length. A CD’s rate is fixed for the term once opened, unlike a savings account’s APY, which can change next month. The tradeoff is access: taking money out of a CD before maturity usually costs an early-withdrawal penalty, so it only makes sense for cash you’re confident you won’t need before the term ends.
When rates were falling, that fixed rate was the whole case for a CD. Now that the Fed is raising rates, it cuts the other way: money locked in a CD today misses any further increase. The Fed’s own September projections lean toward at least one more increase this year, but projections are not promises. If you’d rather not guess, the usual answer is to split the money: a short CD for part of it, and a liquid savings account for the rest. The rate-hike explainer has a calculator for what a quarter point does to your own balances.
Savings account or CD, and what each gives up
High-yield savings
- Money stays fully accessible — no penalty to withdraw.
- Good fit for an emergency fund, where access matters more than locking in a rate.
- The rate can change at any time. It fell through the summer of 2026 and may now rise after the September hike.
CDs
- Rate is locked for the term: protection if rates fall, a missed gain if they rise.
- Early withdrawal usually forfeits some or all of the interest earned.
- Best for money with a known timeline, not an emergency fund.
What to actually do with this
- Emergency fund, needs to stay liquid: Capital One 360 Performance Savings or a similar no-minimum, no-fee account — check current APY before moving money, since it changes.
- Cash you won’t touch for 6–18 months: lean toward the short end, a 6–12 month CD. It still locks a rate, but it doesn’t tie the money up for long while the next move may be another increase.
- Considering Newtek Bank specifically because of its listed rate: don’t — it isn’t accepting new applications right now, regardless of what a comparison chart shows.
Related read
Once a high-yield account is open, seeing it alongside checking, investments, and debt in one place makes it easier to keep the whole picture straight. Our comparison of free net-worth trackers → covers tools built for exactly that. If the money going into savings is competing with a budget that feels tight every month, start with our budgeting apps comparison → instead. And if you’re considering crypto with money beyond what belongs in savings, our comparison of crypto exchanges for beginners → covers fees and a real safety gap most guides don’t mention.
A rates note that won’t stay true for long
Every APY figure in this piece was current when researched in August 2026. Rates fell fast from spring through August, and the Fed’s September 16 increase has since turned the direction. Treat every number here as a starting point for comparison, not a rate you’re guaranteed to be offered. Confirm the live rate directly on the provider’s site before opening or funding any account, and double-check FDIC coverage on any bank you haven’t used before.
What changed since publication
- September 26, 2026 — Updated for the Fed’s September 16 rate increase: new title, a note at the top, rewritten CD guidance, and rate-direction wording throughout. Account APYs are still from August and were not re-checked.
- August 20, 2026 — Published.
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