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

The Federal Reserve has cut its target rate three times in late 2024, causing savings interest rates to fall from their historic highs. To ensure you’re getting the best rate possible, check out the breakdown of current savings interest rates and where to find the best offers.

The national average savings account rate is 0.41%, a significant increase from 0.06% three years ago. This reflects a sharp rise in a short period of time, making it important to shop around for the best rates.

The highest savings account rate available today is 4.50% APY, offered by Poppy Bank with a minimum opening deposit of $1,000 required. Considering these rates may not last, it’s wise to open a high-yield savings account now to take advantage.

Interest earned from a savings account depends on the annual percentage rate (APY), which determines total earnings after one year considering the base interest rate and compounding frequency. For example, with a 0.41% interest rate and daily compounding, a $1,000 deposit would grow to $1,004.11 after one year.

Choosing a high-yield savings account with a 4% APY can result in a balance of $1,040.81 after a year, including $40.81 in interest. Depositing more money can increase earnings significantly, with a $10,000 deposit in a 4% APY account resulting in a total balance of $10,408.08 after one year, earning $408.08 in interest.

Read more: Best high-yield savings interest rates today, April 6, 2025 (best accounts offering 4.30% APY)