Top Online Banks Quietly Cut Savings Rates

American Express quietly lowered its high-yield savings account rate this week, trimming it from 3.70% to 3.60% annual percentage yield (APY). While the move might not make headlines, it's part of a broader trend among major consumer banks that impacts millions of savers.

In recent weeks, several high-yield savings accounts offered by household names have nudged rates lower. Marcus by Goldman Sachs, Capital One, and SoFi all maintain rates around 3.80% or slightly below. But those who track rates closely know that these popular brands rarely offer the highest yields.

Our top 10 savings account rate tracker currently has the following on the top yields:

Always A Step Behind

Even when rates were rising rapidly in 2023 and 2024, the most recognizable online banks consistently offered rates that lagged the best offers in the market by about one percentage point. Right now, while some credit unions and online bank accounts still advertise yields north of 4.30%, the bigger names top out closer to 3.60% to 3.80%.

This isn’t new. Banks like SoFi and Capital One prioritize customer acquisition and retention through brand trust and ease of use, not by leading on rate. For some consumers, that's a fair trade-off. But for others, especially those parking larger emergency funds or short-term savings, that 1% gap can add up quickly.

A $25,000 balance earning 4.60% instead of 3.60% amounts to an extra $250 a year in interest, with no extra effort. The power of compound interest on these additional amounts can really add up over time!

Why Savings Rates Are Dropping Now

Interest rates on savings accounts typically follow movements in Federal Reserve policy. After more than a year of rate hikes, the Fed has been holding its benchmark rate steady. However, there's another factor that many dismiss - banks have to be able to lend out the money and earn a profit. 

As lending has been slower, banks need (and want) less deposits. Some banks are interpreting this time as a cue to lower the rates they offer to depositors, especially if they already have strong deposit inflows or limited need for new cash.

American Express, for example, has built a strong deposit base through consistent digital marketing and cardholder cross-promotion. That gives it less incentive to keep rates as high as competitors who rely on best-in-class yield to attract new customers.

The same goes for Marcus, SoFi, and others that now offer a wide range of financial products and services. As more customers sign up for checking accounts, loans, and investment products, the need to offer highly competitive rates on savings account interest rates shrinks.

What To Look For Going Forward

If you're hoping to earn more without taking on risk, don't settle for a big name. Dozens of FDIC-insured and NCUA-insured institutions are currently offering rates well above 4.20%. Some of these include smaller online-only banks or regional credit unions that have recently expanded their digital reach.

These accounts are still insured and safe to use, and can make a great savings account to park your emergency fund. To make shopping easier, we maintain a regularly updated list of the best high-yield savings accounts, including lesser-known names that consistently top the charts.

While the Fed hasn't signaled any immediate rate cuts, the market expects at least one before the end of 2025. If that happens, more banks could lower savings rates further. 

Don't Miss These Other Stories: