Key Takeaways
- The Fed raised rates to 3.75%-4.00% on September 16, 2026 — its first hike since July 2023.
- Top HYSAs paid up to 4.21% APY in early September; expect those rates to drift higher.
- Top CDs still edge out HYSAs: CFG Bank's 1-year CD pays 4.30%, Bread's 2-year 4.25%.
- Fed officials project one more hike in 2026; the next decision lands October 28, 2026.
The average savings account still pays just 0.38% APY, largely unchanged for over a year. The top high-yield savings accounts (HYSAs) right now pay up to 4.21%, and top CDs now pay up to 4.50% — both over 10 times more than average, with zero additional risk either way.
If you’re on this page, you’re likely comparing HYSA and CD options for cash you want to grow but might still need access to. Here’s what’s actually paying the most on each right now, and how to decide between them. (If you want the math on why even a few percentage points of APY compounds into real money over time, I’ve broken that down separately in my piece on the power of compounding — it’s the same math that underlies how much you actually need saved to be financially independent.)
Top High-Yield Savings Rates Right Now (September 2026)
| Bank | APY | Notes |
|---|---|---|
| Axos ONE Savings and Checking Bundle | 4.21% | Requires $1,500 in monthly qualifying direct deposits plus a $1,500 average balance (or a $5,000/$5,000 tier); drops to 1.00% APY if you don’t meet the requirement |
| Newtek Bank Personal High Yield Savings | 4.20% | No monthly fee — still not accepting new applications due to demand; waitlist available, same as the past two months |
| Forbright Bank Growth Savings | 4.15% | Promotional rate (a 0.30% boost running through 12/31/2026) requires a $1,000 minimum balance; standard rate without the boost is 3.85% |
If you’d rather skip deposit and balance requirements entirely, Climate First Bank’s Super Duper Savings account pays 4.01% APY with just a $50 minimum to open and no strings attached.
The top HYSA rates haven’t moved yet — Axos is still the leader at 4.21%, same as before the Fed’s September 16 hike. CDs got there first: the best published CD rates have already climbed past where they sat two weeks ago, which tracks with how these things usually play out — new CD rates get set and advertised almost immediately, while ongoing HYSA rates take a bank a week or two longer to adjust. I’ll update this table as the HYSA side catches up.
Where the Fed Stands (And Why It Matters for Your Rate)
HYSA rates track the Federal Reserve’s federal funds rate fairly closely, since banks adjust what they pay savers based on what it costs them to borrow elsewhere. On September 16, 2026, the Fed raised its benchmark rate by a quarter point to 3.75%–4.00%, up from 3.50%–3.75% — its first hike since July 2023 and the first rate move of any kind under Fed Chair Kevin Warsh, who took over the gavel on May 22, 2026. The vote was unanimous, 12–0.
Warsh delivered his first Jackson Hole keynote as chair on August 28, 2026, and struck a notably hawkish tone — he called inflation “concerning” and said the Fed may still have “work to do” to bring it down, even while describing the broader economy as strong. That speech moved markets.
That tone turned out to be a real signal. Going into the meeting, CME futures put the odds of a hike at roughly 65%–68%, and the Fed followed through. Officials pointed to inflation running well above the Fed’s 2% target — their own projections now have PCE inflation at about 3.7% for 2026 — and Warsh put it bluntly: “Inflation is too high and has been for too long.”
What the hike means for your savings: top HYSA rates usually start moving up within a week or two of a hike as banks compete for deposits, though no bank is required to pass through the full quarter point. New CD rates tend to follow, while a CD you’ve already opened keeps its locked-in rate until it matures. The same hike also pushes borrowing costs the other way — I cover what that means for buyers in my look at mortgage rates and home prices.
What a rate cut would mean later: if the Fed eventually does start cutting, HYSA rates typically follow down within a billing cycle or two — banks aren’t obligated to pass through cuts quickly, but competitive pressure usually gets them there. If you’re choosing between a HYSA and locking in a CD right now, that’s the tradeoff: a CD locks in today’s rate for its term, while a HYSA’s rate can move either direction with the Fed. Short-term Treasury bills are a third option worth knowing about — I compared my own experience buying one against CDs and HYSAs if you want another liquid, low-risk place for cash.
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CD vs. High-Yield Savings: Which Actually Earns You More Right Now
The gap between CD and HYSA rates remains narrow. A year or two ago, locking in a CD usually meant giving up meaningful yield versus a HYSA. That’s no longer true at the top of the market — here’s what’s actually available on each side right now.
| CD Term | Best Published APY | Bank | Minimum Deposit |
|---|---|---|---|
| 6-month | 4.30% | Quorum Federal Credit Union | Varies by account |
| 1-year | 4.45% | BTG Pactual Bank | Varies by account |
| 3-year | 4.50% | Popular Direct | $10,000 |
Those are meaningfully higher than the 4.15%–4.30% range this table showed just before the Fed’s hike — CD issuers moved first, exactly as expected, while HYSA rates are still catching up. Credit unions can beat even these on shorter, niche terms: California Coast Credit Union was offering 5.00% APY on a 5-month “Take 5” certificate as of early September 2026, though it’s limited to new members and caps deposits at $5,000. Credit union CDs typically require membership (often just a small one-time donation to a partner nonprofit), which adds a small extra step compared to opening a bank account online.
Compare those top CD rates to the top HYSAs from the table above — 4.21% at Axos, 4.01% at Climate First — and CDs have now pulled ahead by a few tenths of a point at every term, at least until HYSA rates finish adjusting to the hike.
The averages tell a very different story than the top-of-market numbers. The national average 1-year CD APY is just 2.03% as of early September 2026, versus 0.38% for the average savings account. Most people banking with a traditional big bank are earning a fraction of what’s actually available — the gap between “average” and “best available” is enormous in both categories, which is exactly why shopping around matters more than which product type you pick.
When a CD Wins
- You’re confident you won’t need the cash before the term ends.
- You expect the Fed to hold or eventually cut before your CD matures, and want to lock in today’s yield before that happens.
- You want a fixed, predictable return with zero chance of the rate dropping mid-term.
When a HYSA Wins
- You might need the cash on short notice — HYSAs have no withdrawal penalty.
- You expect rates to keep rising (the Fed’s own median projection pencils in one more hike before the end of 2026), since a HYSA’s rate can rise right along with it.
- You want to keep adding to the balance over time; most CDs are a single lump-sum deposit.
Early withdrawal from a CD before its term ends typically costs you 3 to 6 months of interest as a penalty, depending on the term and bank — sometimes more for longer-term CDs. That penalty is the real cost of the “locked in” rate, so a CD only makes sense if you’re genuinely confident you can leave the money untouched. If there’s any real chance you’ll need the funds early, the flexibility of a HYSA is usually worth more than the extra fraction of a percentage point a CD might offer.
With CD rates now genuinely ahead of top HYSA rates for the first time in a while, and the Fed raising rates rather than holding, this is a closer call than it’s been in months. If you’re confident you can lock the cash away, a CD is worth a real look right now; if there’s any chance you’ll need it, a HYSA still gets you nearly the same yield with full flexibility, and it’ll rise further as banks catch up to the hike.
How to Choose a High-Yield Savings Account
Whichever provider you’re considering, run it through these four checks before opening an account.
1. Interest Rate or Annual Percentage Yield (APY)
Compare the account’s standard ongoing APY, not just a short-term promotional rate that resets after 3 or 6 months. Some of the accounts above (Axos, Forbright) require ongoing deposit or balance activity to keep the top rate — that’s different from a temporary teaser, but still worth reading the fine print on.
2. No Fees
A legitimate high-yield savings account shouldn’t charge monthly maintenance, minimum-balance, or account-keeping fees. Banks make their money on the spread between what they pay you and what they can lend or invest at elsewhere — if a provider is also charging fees on top of that, it’s worth reconsidering. If you’re curious how your savings stack up more broadly, I’ve also put together average net worth by age as a reference point.
3. Ease of Use
Most online banks let you preview their interface before opening an account. Check that linking to your existing checking account is straightforward and that direct deposit setup doesn’t require extra hoops.
4. FDIC Insured
Verify FDIC coverage directly at the FDIC’s BankFind tool before depositing. All deposits up to $250,000 per depositor, per bank, are automatically FDIC-insured — if an institution is offering a rate well above the market average without FDIC backing, treat that as a red flag rather than a deal. The same check applies to CDs at a bank or NCUA coverage at a credit union.
Looking Ahead: The October 28 Fed Decision and the 2027 Outlook
The Fed’s next decision lands October 28, 2026, after a two-day meeting that starts October 27, with one more meeting after that in December. The median Fed official’s projection from the September meeting pencils in one more quarter-point hike before year-end, but markets see October as close to a coin flip between another hike and a hold — so the jobs and inflation reports between now and then will decide it. I’ll update this page after the October decision and as HYSA rates finish catching up to CDs.
For 2027, those same projections have the federal funds rate staying roughly around current levels, with PCE inflation expected to ease from about 3.7% this year to 2.3% next year. If that plays out, top rates on both CDs and HYSAs have room to stay above 4% through much of 2027. The bigger risk for savers is inflation cooling faster than expected, which would bring rate cuts back into the conversation — and that’s the scenario where locking part of your cash into a CD now, while rates are still this high, ends up paying off.
If you’re deciding whether to wait for a possibly higher rate or lock in a top rate now, keep in mind that even a “wait and see” approach still earns you the current top rate while you watch — there’s no cost to opening a high-yield account today and switching later if something better comes along.
