From Yahoo Finance: 2025-04-12 06:00:00

The Federal Reserve has cut its target rate three times in late 2024, leading to falling savings interest rates. It’s crucial to shop around for the best savings account rates available today. The national average savings account rate is currently at 0.41%, significantly higher than three years ago at 0.06%.

Despite the low national average savings interest rate, some accounts offer much higher rates, with the top ones reaching 4% APY and above. Currently, the highest savings account rate available from partners is 4.50% APY, requiring a minimum opening deposit of $1,000. Don’t settle for the average when better rates are out there.

The interest earned from a savings account is determined by the annual percentage rate (APY), considering the base interest rate and compounding frequency. For example, with $1,000 in an account at 0.41% interest with daily compounding, you’d earn $4.11 in a year. Opting for a high-yield account at 4% APY would yield $40.81 in the same period.

The more you deposit in a savings account, the more you can earn. With $10,000 in a high-yield account at 4% APY, you’d earn $408.08 in interest after one year. It’s important to consider your deposit amount when looking for the best savings account rates to maximize your earnings.

Read more: Best high-yield savings interest rates today, April 12, 2025 (earn up to 4.50% APY)