From Yahoo Finance: 2025-04-25 06:00:00

The Federal Reserve has cut the federal funds rate three times in late 2024, leading to falling deposit interest rates. Despite this, high-yield savings accounts with rates above 4% APY are available. The national average rate for savings accounts is 0.41%, but top high-yield accounts offer over 10 times that.

The highest savings account rate available today is 4.30% APY from EverBank, with no minimum deposit required. It’s crucial to shop around before opening a savings account as rates vary widely among banks and credit unions, especially online banks which offer competitive rates and low fees due to reduced overhead costs.

Online banks are known for offering high deposit rates and low fees due to reduced overhead costs. Credit unions, on the other hand, are not-for-profit financial cooperatives that also offer competitive rates and fewer fees. While some credit unions have membership requirements, others are more open to new members.

Savings accounts are a safe option for storing money, insured by the FDIC or NCUA up to $250,000. However, for long-term savings goals like retirement, investing in higher-risk market options like stocks, index funds, and mutual funds can provide higher returns than savings accounts.

For short-term savings goals, like a down payment or emergency fund, high-yield savings accounts are a great option. These accounts offer easy access to funds when needed, unlike money market accounts or CDs that have more withdrawal restrictions. It’s essential to consider the purpose of your savings when choosing where to invest your money.

Read more: Best high-yield savings interest rates today, April 25, 2025 (up to 4.30% APY return)