Federal Reserve rate cuts have decreased high-yield savings account rates, but some still offer over 4% APY

From Yahoo Finance: 2025-05-13 10:53:00

The Federal Reserve has lowered its target interest rate three times in 2024, causing high-yield savings account rates to decrease. However, some accounts still offer over 4% APY. Research is key to finding the best rates. The average interest rate on traditional savings accounts is only 0.41%, while high-yield accounts offer much higher rates. The highest savings account rate available is 4.30% APY from EverBank with no minimum deposit. Interest rates have fluctuated over the past decade, with lows after the 2008 crisis and recent decreases due to Fed rate cuts in response to inflation. Despite rate increases since 2021, savings account rates remain low, making them ideal for short-term goals but not for long-term investments. Consider high-yield savings accounts, money markets, or CDs for competitive rates with limited withdrawals.



Read more at Yahoo Finance: Best high-yield savings interest rates today, May 13, 2025 (Earn up to 4.30% APY)