Interest rates for bank accounts are rising — here’s how you can take advantage

Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. Select will update as changes are made public.

While the economy recovers from the effects of the Covid-19 pandemic, inflation, unfortunately, has skyrocketed to 40-year highs. As a result, the Federal Reserve has decided to raise interest rates.

Interest rates, which you might already be familiar with since they're often referred to regarding loans and mortgages, also affect money sitting in your bank account. Money in your checking and savings accounts can earn interest, and the APYs of these accounts are affected by Federal Reserve interest rates as well.

Below, Select details what you need to know about your bank account interest rate, and why you may want to consider switching banks to take advantage of the latest rate increase.

If you already have a high-yield savings account, you may have noticed a recent hike in your account's APY. That's because the Federal Reserve, the central bank of the United States, has been gradually raising rates to help slow down the pace of inflation. Chances are, your bank has likely followed suit.

This is good news for consumers since the interest earned on the money in your high-yield savings account can further bolster your savings. However, it's important to be strategic about your account to ensure you're getting the maximum return from it.

How to pick and maximize a high-yield savings account

With a high-yield savings account, you can earn a sizable amount of interest (at least in comparison to standard checking and saving accounts). Unfortunately, many of the legacy brick-and-mortar banks offer checking and savings accounts with near-zero interest rates, which means your money is essentially loosing value due to inflation as it does not grow. But with the rising cost of living any additional methods of fighting inflation are worth considering.

To ensure you're getting the maximum amount of interest, make sure you're putting your hard-earned money in a high-yield savings account such as Varo Savings or *American Express® High Yield Savings Account.

It's worth noting that these types of accounts should not be treated like a checking account. If you're regularly pulling money out, it defeats the whole purpose of having a high-yield savings account and your interest earnings will be much less as it will lessen the power of compounding.

A good use of a high-yield savings account is to store money for your emergency fund and other medium to long-term goals like a down payment on a house or car. It's important to note that if you're saving for long-term you'll likely want to invest your money in the market in index funds, which have much more growth potential if you have a lengthy investing time horizon.

There are dozens of high-yield savings accounts available on the market, both through in-person and online banks. While the benefits of each account vary, you should be looking for these core features:

• The highest annual percentage yield, or APY, possible
• A user-friendly website and mobile app
• Customer service that is easily accessible
• No minimum deposit or minimum balance
• It's FDIC-insured
• No fees

Here's a look at some of our favorite high-yield savings accounts that are currently available.

When choosing a high-yield savings account, it's equally important to ask yourself the following questions and make sure you can check off these financial boxes prior to applying:

• Is your high-interest debt paid off?
• Are you able to keep up with your monthly bills?
• Are you filling your retirement accounts, such as your 401(k) or Roth IRA?

While an emergency fund is a core financial tool, in some cases, your money may be better used elsewhere.

As Americans continue to struggle with the effects of inflation, rising interest rates are anticipated to help slow the rise in the price of everyday goods. If you're looking for a way to earn passive income and a place to keep your emergency fund, moving your money to a high-yield savings account can definitely be worth it.

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* New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/ *SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn up to 3.10% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.10% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. *SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC's regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks. *Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 12/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC *Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

* American Express National Bank is a Member FDIC