From Yahoo Finance: 2025-06-29 06:00:00

The Federal Reserve has cut its target rate three times in late 2024, causing savings interest rates to fall from their historic highs. The national average savings account rate is 0.38%, a significant increase from 0.06% three years ago. The highest savings account rate available is currently 4.31% APY through VIO Bank. It’s wise to consider opening a high-yield savings account now to take advantage of these rates. The amount of interest earned from a savings account depends on the annual percentage rate (APY), with daily compounding being a common practice. For example, a $1,000 deposit at a 0.42% interest rate would grow to $1,004.12 after a year. Opting for a high-yield savings account with a 4% APY would result in a balance of $1,040.81 after a year. The more you deposit, the more you stand to earn in interest. For instance, a $10,000 deposit in a high-yield savings account with a 4% APY would yield a total balance of $10,408.08 after a year, with $408.08 in interest earned.



Read more at Yahoo Finance: Best high-yield savings interest rates today, June 29, 2025 (best accounts offering 4.31% APY)