High-yield savings rates dropping, but some accounts offer up to 4.31% APY

From Yahoo Finance: 2025-06-28 06:00:00

Savings interest rates are dropping after the Federal Reserve lowered its target rate three times in late 2024. The national average savings account rate is at 0.38%, up from 0.06% three years ago. However, the best accounts offer rates as high as 4% APY or more.

The highest savings rate available as of June 28, 2025, is 4.31% APY from Everbank with no minimum deposit required. The amount of interest earned depends on the annual percentage rate (APY) and compounding frequency, with some accounts offering daily compounding.

For example, with $1,000 in an account at 0.42% interest, your balance after a year would be $1,004.12. Opting for a high-yield account at 4% APY would grow your balance to $1,040.81, including $40.81 in interest. Depositing more can significantly increase your earnings.

Consider a $10,000 deposit in a high-yield account at 4% APY, which would yield a balance of $10,408.08 after a year, earning $408.08 in interest. It’s crucial to shop around for the best savings rates to maximize your earnings potential.

Read more: Best high-yield savings interest rates today, June 28, 2025 (earn up to 4.3% APY)