These 4 Banks Are Still Offering Close to 5% (But Not for Long)

If you’ve been enjoying the golden age of high-interest savings, consider this your final boarding call.

The Federal Reserve concluded its final meeting of 2025 on Dec. 10 with another 0.25% rate cut, bringing the target range down to 3.5% to 3.75%.

This marks the third cut of the year, and banks are already beginning to slash their own rates in response.

While the Fed does not directly set the interest rates you see in your savings account, its benchmark federal funds rate serves as the primary influence for most financial institutions. When the Fed moves, commercial banks usually follow suit within days.

According to data from the Federal Deposit Insurance Corp. (FDIC) as of Dec. 15, the national average for a standard savings account has dipped to a dismal 0.39% annual percentage yield (APY). However, a handful of holdout institutions are still offering 5% APY.

The 5% holdouts

A few institutions are currently leading the market with their high-yield rates. But note that it’s important to pay attention to the requirements, as some of these top-tier rates are only available on a portion of your balance.

Varo Bank currently offers a 5% APY on balances up to $5,000. To qualify, you must receive at least $1,000 in monthly direct deposits and end each month with a positive balance in all your Varo accounts.

If you don’t meet those hurdles, or for any amount over $5,000, the rate drops to 2.5% APY.

AdelFi Credit Union is another top contender, offering a limited-time 5% APY to new members who use the promo code NEW2025.

Like Varo, this rate is capped at the first $5,000. Balances over $5,000 and under $10,000 will earn 2.5% APY, and anything over $10,000 earns the standard savings rate. Note that membership in this credit union requires accepting a specific statement of faith, which may not be for everyone.

High-yield options with fewer hoops

If you don’t want to deal with direct deposit requirements or balance caps, there are still excellent options in the mid-4% range.

Pibank is offering a 4.6% APY with no minimum balance and no monthly fees. It is a mobile-focused bank, making it a good fit for those comfortable managing their money through an app.

Newtek Bank is another high-yield leader with a 4.35% APY on its personal high-yield savings account. There is no minimum balance required to open the account, and no monthly maintenance fees.

For those with larger balances, Axos Bank offers up to 4.31% APY through its Axos One bundle, though you will need to meet direct deposit and average daily balance requirements to hit that top tier.

The math behind the move

You might wonder if moving your money for an extra percentage point or two is really worth the effort. Let’s look at the numbers.

If you have $25,000 sitting in a traditional bank account earning the national average of 0.39%, you will earn roughly $97 in interest over the course of a year.

If you move that same $25,000 to an account like Pibank at 4.6%, you will earn approximately $1,150.

That’s more than $1,000 in additional passive income just for spending a few minutes filling out an online application.

In an environment where the cost of living remains elevated, leaving that much money on the table is an expensive mistake.

Locking in your yield with CDs

Because high-yield savings rates are variable, they can — and likely will — drop further if the Fed continues its cutting cycle in 2026.

To protect your interest income, you may want to move a portion of your cash into a certificate of deposit (CD), which guarantees your rate for a set period.

NASA Federal Credit Union is currently offering one of the strongest short-term options with a 4.25% APY on a nine-month term.

For those looking for a longer commitment, Discover Bank is offering a 3.9% APY on a 12-month CD with no minimum deposit required.

By laddering your CDs — placing some funds in a 6-month term and some in a 12-month or longer term — you can ensure you have regular access to your cash while still locking in today’s higher rates for the long haul.

We always have the answer

While the rates quoted in this article can change any time, there’s one thing that won’t: We always have current savings rates listed on the Savings page of MoneyTalksNews.com. Drop by any time!