From Yahoo Finance: 2025-04-02 06:00:00

The Federal Reserve has cut the federal funds rate three times in late 2024, resulting in falling deposit rates. High-yield savings accounts offer as much as 4% APY. The best savings interest rates are around 4.0% to 4.5% APY. Poppy Bank currently offers the highest savings account rate at 4.50% APY with a $1,000 minimum deposit.

Deposit account rates, including savings rates, are influenced by the federal funds rate set by the Federal Reserve. After multiple interest rate hikes, the Fed lowered its rate three times in late 2024, causing deposit rates to decrease. Experts predict two more rate cuts in 2025, leading to further drops in savings account rates.

Considerations when choosing a high-yield savings account include interest rates, goals, accessibility, and security. These accounts provide historically high rates, making them ideal for short-term savings. Savings accounts are FDIC-insured up to the federal limit and offer low-risk investment options. Evaluate your options carefully to maximize your savings.

Read more: Best savings interest rates today, April 2, 2025 (Earn up to 4.50% APY)