Federal Reserve rate cuts result in dropping savings interest rates, making it crucial to find high-yield options.
From Yahoo Finance: 2025-06-07 06:00:00
The Federal Reserve’s target rate cuts mean savings interest rates are dropping, so it’s vital to find the best savings account rate. The national average is 0.42%, but top accounts offer 4% APY and above. EverBank and Openbank offer the highest rate of 4.3% APY, with no minimum deposit required for EverBank.
Interest earned on savings accounts depends on the APY, which factors in compounding interest. At 0.42% APY, $1,000 would grow to $1,004.12 in a year. Opting for a 4% APY account would yield $1,040.81, including $40.81 in interest. Depositing more, like $10,000, could earn $408.08 in interest with a 4% APY account.
Read more at Yahoo Finance: Best high-yield savings interest rates today, June 7, 2025 (earn up to 4.3% APY)