High-yield savings rates still offer over 4%; research needed to find best rate.

From Yahoo Finance: 2025-05-27 06:00:00

The Federal Reserve has lowered interest rates three times in 2024, affecting high-yield savings rates. Despite this, some accounts still offer over 4% APY. Research is key to finding the best rates. The highest rate currently available is 4.44% from Peak Bank, with no minimum deposit required.

Interest rates on traditional savings accounts average 0.42%, while high-yield accounts offer much more. Rates have fluctuated over the last decade due to economic events, with the Fed lowering rates in response to crises. COVID-19 led to a sharp decrease in rates, but they have since recovered.

Savings interest rates have risen recently due to the Fed’s interest rate hikes, but have started falling after the Fed’s 2024 rate cuts. Despite the increase, average savings rates remain low compared to other investments. For long-term goals, savings accounts may not generate sufficient returns, but they are ideal for short-term needs.



Read more at Yahoo Finance: Best high-yield savings interest rates today, May 27, 2025 (Earn up to 4.44% APY)