From Yahoo Finance: 2025-03-23 14:48:00

The Federal Reserve has cut its target rate three times in late 2024, causing savings interest rates to fall from historic highs. It’s crucial to find the best rate possible when looking for a savings account.

The national average savings account rate is currently at 0.41%, a significant increase from just 0.06% three years ago.

The highest savings account rate available today is 3.70% APY, offered by American Express National Bank and Capital One, without requiring a minimum opening deposit.

Consider opening a high-yield savings account now to take advantage of today’s high rates, as these rates may not last long.

The amount of interest earned from a savings account depends on the annual percentage rate (APY), which considers the base interest rate and how often interest compounds (typically daily).

For example, with $1,000 in a savings account at a 0.41% interest rate with daily compounding, your balance would grow to $1,004.11 in one year.

Choosing a high-yield savings account with a 4% APY instead would see your balance grow to $1,040.81 over the same period, including $40.81 in interest.

The more you deposit in a savings account, the more you can earn. For example, with a $10,000 deposit in a high-yield savings account at 4% APY, your total balance after one year would be $10,408.08, earning $408.08 in interest.

Read more: Savings interest rates today, March 23, 2025 (best accounts offering 3.70% APY)