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

The Federal Reserve has cut the federal funds rate three times, causing deposit interest rates to fall. Despite this, high-yield savings accounts are still available with rates above 4% APY. The national average for savings accounts is just 0.41%, while top high-yield accounts offer more than 10 times that rate.

The highest savings account rate available is currently 4.50% APY, offered by Poppy Bank with a minimum opening deposit of $1,000. Shopping around is crucial to find the best rates, as interest rates vary widely among banks and credit unions.

Online banks offer high deposit rates and low fees due to reduced overhead costs. Many of the best high-yield savings accounts have no monthly fees or minimum opening deposit requirements. Savings accounts with rates between 4% and 5% APY can also be found at credit unions known for competitive rates and fewer fees.

Savings accounts are safe and insured by the FDIC or NCUA up to $250,000. While they may not offer the same returns as market investments, they are ideal for short-term savings goals like a down payment or emergency fund. For long-term goals like retirement, consider higher risk market investments like stocks and mutual funds.



Read more at Yahoo Finance: Savings interest rates today, April 4, 2025 (up to 4.50% APY return)