Best savings interest rates are above 4% APY, with online banks and credit unions offering competitive rates.

From Yahoo Finance: 2025-04-11 06:00:00

The Federal Reserve has cut the federal funds rate three times in late 2024, causing deposit interest rates to fall. However, high-yield savings accounts are still offering rates above 4% APY. The national average for savings accounts is just 0.41%, but top accounts offer over 10 times that amount.

The highest savings account rate available today is 4.30% APY from EverBank, with no minimum opening deposit required. It’s crucial to compare rates from various banks and credit unions to find the best offer for you.

Online banks offer high deposit rates and low fees due to reduced overhead costs. Many of the best high-yield savings accounts have zero monthly fees or minimum deposit requirements. Consider checking out online banks for competitive savings interest rates.

Credit unions also provide rates between 4% and 5% APY, along with fewer fees. While some credit unions have membership requirements, many are open to the public. They are known for offering competitive rates and can be a great alternative to online banks.

Savings accounts are a safe place to keep your money, insured by the FDIC or NCUA. They are protected up to $250,000 if your financial institution fails and are not affected by market fluctuations. However, for long-term savings goals like retirement, consider investing in higher-risk market options for greater returns.

For short-term goals like a down payment or emergency fund, a high-yield savings account is ideal. It allows easy access to your money, unlike other accounts with restrictions on withdrawals. Keep in mind that while savings accounts offer high rates, investing in stocks or mutual funds may yield higher returns for long-term goals.



Read more at Yahoo Finance: Best savings interest rates today, April 11, 2025 (up to 4.30% APY return)