Summary: High-yield savings interest rates are falling, but some accounts offer up to 4.3% APY.

Savings interest rates are falling due to the Federal Reserve cutting its target rate in late 2024. The national average savings rate is 0.38%, a significant increase from 0.06% three years ago. However, some accounts are offering rates as high as 4% APY. The highest current rate available is 4.3% APY.

The amount of interest earned in a savings account depends on the annual percentage rate (APY), which considers the base interest rate and compounding frequency. For example, at 0.42% interest with daily compounding, a $1,000 deposit would grow to $1,004.12 after one year.

Choosing a high-yield savings account with 4% APY would result in a balance of $1,040.81 after one year for a $1,000 deposit, earning $40.81 in interest. Depositing more, like $10,000, could earn $408.08 in interest in the same account.

To maximize your savings, consider these high-interest accounts. Make sure you’re getting the best rate possible for your deposits to see significant earnings over time.

Read more at Yahoo Finance: Best high-yield savings interest rates today, July 5, 2025 (earn up to 4.3% APY)