Best Cash Reserve vs High-Yield Savings Accounts in 2025: Top Rates Up to 5.12% APY

Maximize your idle cash by choosing the right account with the best interest rates available today.

If you’re holding more cash than usual amid stock market uncertainties, leveraging historically high interest rates through a high-yield savings account or a brokerage cash management (cash reserve) account can be a smart move.

Currently, high-yield savings accounts offer annual percentage yields (APY) up to 5.12%, with many exceeding 4.50%. In comparison, brokerage cash reserve accounts reach up to 5.00% APY.

With the Federal Reserve expected to pause interest rate hikes this year, these rates are likely near their peak. Both account types feature variable rates that can fluctuate without notice, so your choice should factor in rates, deposit minimums, and how easily you can access your funds.

Key Insights

• Cash reserve accounts currently offer rates up to 5.00% APY.
• High-yield savings accounts lead slightly with rates up to 5.12% APY.
• Keeping cash in a brokerage’s cash reserve account can earn interest while keeping funds ready for investment.
• For emergency funds or other needs, a high-yield savings account may provide better liquidity and fewer transfer restrictions.

Comparing Interest Rates: Cash Reserve vs Savings Accounts

Interest rates on both brokerage cash reserves and savings accounts have surged over the past year due to Federal Reserve rate hikes aimed at controlling inflation. Generally, savings accounts offer marginally higher yields.

The top high-yield savings account in 2024 is offered by CFG Bank, providing a 5.12% APY with a $1,000 minimum deposit and a $10 monthly fee. Several other accounts offer 5.00% or higher with no minimum deposits or fees.

On the brokerage side, Robinhood Gold subscribers earn 4.65% APY on cash reserves for a $5 monthly fee, while standard Robinhood users receive 1.50%. Wealthfront and Betterment offer competitive cash management rates at 4.55% and 4.50%, respectively. More traditional brokerages like Fidelity and Schwab offer lower yields of 2.60% and 0.48%.

Additional Factors When Choosing Between Cash Reserve and Savings Accounts

Cash reserve accounts are directly linked to brokerage accounts, enabling seamless transfers between your savings and investments without limits on transaction frequency. They often have minimal or no fees and provide perks such as checks and free ATM access.

Another advantage is extended FDIC insurance coverage: brokerages typically distribute deposits across multiple partner banks to insure amounts exceeding the standard $250,000 FDIC limit per institution.

Conversely, high-yield savings accounts usually do not provide check-writing capabilities and may lack ATM access, especially those operating exclusively online. Transfers to investment accounts can take longer and may be limited in frequency, sometimes incurring fees if exceeded.

How We Collect Rate Data

Investopedia monitors daily interest rates from over 200 federally insured banks and credit unions nationwide to rank the best high-yield savings accounts. Eligible institutions must be FDIC or NCUA insured, offer accounts with minimum deposits under $25,000, and be available in at least 40 states. Credit unions requiring donations over $40 for membership are excluded. For full details on our selection process, see our methodology.

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