Federal Reserve cuts in interest rates causing savings rates to decrease, but some offer high APYs

From Yahoo Finance: 2025-04-19 06:00:00

The Federal Reserve has cut interest rates three times in late 2024, causing savings account rates to decrease. National average savings account rate is currently at 0.41%, up from 0.06% three years ago. However, some top accounts offer 4% APY and higher. Vio Bank offers the highest rate at 4.41% APY with no minimum deposit. Interest earned in a savings account depends on the APY, with compounding interest daily. With $1,000 at 0.41% APY, you’d earn $4.11 in a year, but at 4% APY, you’d earn $40.81. Depositing more can increase earnings, with $10,000 at 4% APY yielding $408.08 in interest after a year.

Read more: Best high-yield savings interest rates today, April 19, 2025 (earn up to 4.41% APY)