Savings interest rates are declining after three Federal Reserve cuts in late 2024. The national average savings account rate is 0.38%, up from 0.06% three years ago. Openbank offers the highest rate of 4.3% APY with no minimum deposit. Consider opening a high-yield savings account now to benefit from high rates.

The interest earned from a savings account is determined by the annual percentage rate (APY) and compounding frequency. For example, $1,000 at 0.42% interest with daily compounding would yield $4.12 after a year. Choosing a 4% APY high-yield account would result in $40.81 in interest over the same period.

The more you deposit in a savings account, the more you can earn in interest. For instance, depositing $10,000 in a 4% APY high-yield account would yield $408.08 in interest after a year. Consider these factors when selecting a savings account.

Read more at Yahoo Finance: Best savings interest rates today, July 20, 2025 (best accounts offering 3.9% APY)