Making the Most of High-Yield Savings

Dec 26, 2025

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High-yield savings rates have dipped slightly since early spring, but they remain strong enough that choosing the right account right now can still be a wise move. After several quarter-point interest rate cuts by the Federal Reserve, savings yields have eased—but not disappeared. In fact, many online banks continue to offer returns well above those of most brick-and-mortar institutions.

Understanding what’s happening—and how to respond—can help you steward your cash with wisdom and confidence.

Why Savings Still Matter in Your Financial Plan

Savings and investments play very different roles. A savings account is designed for money that must remain safe, accessible, and dependable—your emergency fund, short-term needs, and dollars you’ll rely on in the next few years.

Savings won’t deliver investment-level growth, but the interest they earn still matters. Every bit of growth helps preserve purchasing power and strengthens your financial footing over time.

Over the past few years, inflation rose well above the Federal Reserve’s 2% target. In response, the Fed raised short-term interest rates aggressively. As rates climbed, savings yields—especially at online banks—rose alongside them.

Earlier this year, many high-yield savings accounts were paying between 4.75% and 5%, sometimes more. That gave savers an unusual opportunity to earn meaningful interest on cash that would otherwise sit idle.

Since then, inflation has cooled, and the Fed has begun cutting rates. Those reductions have nudged savings yields lower, but today’s rates are still historically strong—and far more generous than what traditional banks typically offer.

Why Timing Still Works in Your Favor

Banks rarely adjust savings rates immediately after a Fed announcement. Often, there’s a window—sometimes several weeks—when higher yields remain available before they gradually drift downward.

That lag creates an opportunity. While savings accounts aren’t “locked in” like CDs, moving your money into a competitive high-yield account now allows you to benefit as rates slowly settle. Banks tend to move cautiously, often watching one another before making changes, which gives savers time to act.

For many families, knowing their savings are earning a solid return brings peace of mind—whether preparing for an unexpected expense or setting aside resources for opportunities God may bring.

Where High-Yield Savings Fit Best

A strong savings strategy usually includes three key priorities:

1. Your emergency fund. Keep three to six months of expenses in a high-yield savings account. The stronger the yield, the faster that cushion grows—without taking on risk or debt.

2. Short- and mid-term goals. Money you’ll need in the next two to five years—such as a down payment, major repair, or planned purchase—should stay protected from market volatility. High-yield savings accounts offer both safety and reasonable earnings.

3. Regular comparison. Some traditional banks still pay as little as 0.01%—essentially nothing—while online banks often offer rates dozens of times higher. Comparing what you’re earning with what’s available elsewhere can make a meaningful difference.

Exploring Your Options Wisely

Comparison sites like Bankrate and NerdWallet can help you evaluate current rates while also considering reliability, customer experience, and safety ratings.

Money market accounts are another solid option, often offering competitive yields with added flexibility, such as check-writing privileges. Just be mindful of minimum balance requirements.

Don’t overlook credit unions either. As not-for-profit institutions, they often return earnings to members through stronger rates and lower fees. One example is AdelFi Christian Banking, a credit union that combines competitive yields with support for Gospel-centered ministry worldwide.

You can learn more at FaithFi.com/Banking.

Stewardship Is About Faithful Consistency

Choosing where to place your savings isn’t simply about chasing the highest return. It’s about managing God’s resources with intention and care. Saving consistently—month after month, year after year—is quiet, faithful work.

A wise savings vehicle supports that journey, helping your money work a little harder while you walk forward with clarity, confidence, and trust in the Lord’s provision.

On Today’s Program, Rob Answers Listener Questions:

I’m 70 and retired, with a steady monthly income. I need a car costing about $20,000, and I still owe $27,000 on my mortgage. I’d prefer not to carry two payments—should I pay off the mortgage or buy the car, and where should the money come from?
I want long-term protection through investing in gold. What’s the best way to do that today?
I’m retired and have about $1 million invested with Edward Jones. They’re moving me to a 1.2% annual fee on my entire portfolio instead of transaction-based fees. I agreed, but I now wonder whether the fee is warranted. Is this a wise move?

Resources Mentioned:

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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