From Yahoo Finance: 2025-04-27 14:23:00

The Federal Reserve has cut its target rate three times in late 2024, leading to falling savings interest rates. The national average savings account rate is currently 0.41%, a significant increase from 0.06% three years ago. The highest savings account rate available today is 4.40% APY from LendingClub.

It is advisable to consider opening a high-yield savings account now to take advantage of the current high rates. The amount of interest earned in a savings account is determined by the annual percentage rate (APY), with interest typically compounding daily. Choosing a high-yield savings account can significantly increase your earnings compared to traditional savings accounts.

For example, with a $10,000 deposit in a high-yield savings account at 4% APY, you could earn $408.08 in interest in one year. Depositing more money in a savings account can result in higher earnings. It’s important to shop around for the best rates to maximize your savings potential.

Read more: Best high-yield savings interest rates today, April 27, 2025 (best accounts offering 4.40% APY)