Federal Reserve rate cuts in 2024 have lowered savings interest rates, best APY at 4.44%.
From Yahoo Finance: 2025-05-18 06:00:00
The Federal Reserve has cut its target rate three times in late 2024, causing savings interest rates to fall. The national average savings account rate is currently at 0.41%, up from 0.06% three years ago. The highest savings account rate available is 4.44% APY from Peak Bank with no minimum deposit required. If you’re looking to earn more from your savings, consider opening a high-yield savings account now to take advantage of these rates. The amount of interest you can earn from a savings account depends on the annual percentage rate (APY). For example, with $1,000 in a savings account at 0.41% interest, you would earn $4.11 in a year. However, with a high-yield savings account at 4% APY, you could earn $40.81 on the same amount. The more you deposit, the more you can earn – with $10,000 in a high-yield savings account, you could earn $408.08 in interest in a year.
Read more at Yahoo Finance: Best high-yield savings interest rates today, May 18, 2025 (best accounts offering 4.44% APY)