From Yahoo Finance: 2025-03-22 06:00:00

The Federal Reserve has cut its target rate three times in late 2024, leading to falling savings interest rates. It is crucial to ensure you are getting the best rate possible when searching for a savings account. The national average savings account rate is currently 0.41%, up from 0.06% three years ago.

While the national average savings interest rate is relatively low, some of the top accounts today are offering 4% APY and higher. The highest savings account rate available from partners is currently 4.40% APY, offered by Openbank with a $500 minimum deposit requirement.

The amount of interest you can earn from a savings account is dependent on the annual percentage rate (APY), which considers the base interest rate and how often interest compounds. For example, $1,000 deposited with a 0.41% interest rate would grow to $1,004.11 after one year.

Choosing a high-yield savings account with a 4% APY could result in your balance growing to $1,040.81 over a year, including $40.81 in interest. The more you deposit, the more you can earn – with $10,000 in a high-yield account at 4% APY, your total balance after a year would be $10,408.08, earning $408.08 in interest.

Read more: Savings interest rates today, March 22, 2025 (best account provides 4.40% APY)