Savers Confront a Choice: Lock in Safe 5% Returns or Chase DeFi's Tempting 12%

With the Federal Reserve recently lowering interest rates, many savers are taking advantage of high-yield savings accounts to boost their earnings. As of November 6, 2025, leading institutions like Varo Money are providing annual percentage yields (APY) as high as 5.00%, based on Fortune's review

. This rate is significantly higher than the national average of 0.40% for standard savings accounts, reflecting how banks are adapting to changes in monetary policy.

Following the Fed’s quarter-point rate reductions in September and October, banks have begun to revise their savings account rates. Although APYs remained steady earlier in 2025, experts expect they could drop if the Fed implements more cuts at its December meeting, according to Fortune’s November 5, 2025 update. Nevertheless, banks such as Axos Bank, Presidential Bank, and

are still offering rates above 4.00%, giving savers a way to keep ahead of inflation.

Meanwhile, the decentralized finance (DeFi) sector is presenting even higher returns. For instance, ZEROBASE’s stablecoin pool is currently yielding 12% APY, and Maple Finance’s Syrup

pool is offering a 7.07% APY, according to data from LookOnChain . These numbers show the widening gap between traditional banking and DeFi, though DeFi platforms often come with greater risks and shorter liquidity windows, such as the 7-day withdrawal period for .

For those who prefer less risk, the 5.00% APY from Varo Money and similar banks is an attractive choice. These accounts usually have no minimum deposit requirements, charge no monthly fees, and are FDIC-insured, offering both safety and strong returns, as Fortune highlights. This is especially appealing as inflation continues to diminish the value of savings in accounts yielding less than 1%.

The financial sector as a whole is also evolving. For example, Strive, a bitcoin-focused asset manager, is raising funds by issuing preferred shares with a 12% dividend to grow its bitcoin portfolio, according to a CoinDesk article

. This approach is similar to strategies used by companies like MicroStrategy and demonstrates the increasing competition for yield across different investment types. Likewise, Viper Energy’s quarterly dividend of $0.33 per share (a 3.49% yield) shows that traditional stocks remain popular among income-seeking investors, as reported by Seeking Alpha .

However, there are still obstacles. Should the Fed continue to lower rates, banks may further reduce APYs, and some have already revised their outlooks. The average national savings rate dropped from 0.47% in March 2024 to 0.40% by November 1, 2025, illustrating the delay between policy shifts and consumer rates, according to Yahoo Finance

. Additionally, while high-yield accounts offer easy access to funds, they may not provide the in-person services or branch access that traditional banks do.

At present, the mix of attractive APYs and FDIC protection makes high-yield savings accounts a key part of many personal finance plans. With the Fed’s December meeting approaching, savers should keep an eye on interest rate changes and take advantage of current opportunities.