Federal Reserve cuts target rate, causing savings interest rates to fall, but some accounts still offer high APY.
From Yahoo Finance: 2025-05-31 06:00:00
The Federal Reserve has cut its target rate, causing savings interest rates to fall. The national average savings account rate is 0.42%, up from 0.06% three years ago. Some accounts offer 4% APY or higher, with EverBank currently offering 4.3% APY with no minimum deposit. Interest earned depends on the APY and compounding frequency. For example, a $1,000 deposit at 0.41% would earn $4.11 in a year, while a high-yield account at 4% would earn $40.81. Depositing more money means more interest earned, with $10,000 in a 4% APY account earning $408.08 in a year.
Read more at Yahoo Finance: Best high-yield savings interest rates today, May 31, 2025 (earn up to 4.3% APY)