From Yahoo Finance: 2025-05-04 06:00:00

Savings interest rates are falling after the Federal Reserve cut its target rate three times in late 2024. The national average savings account rate is currently 0.41%, up from 0.06% three years ago. The highest savings account rate available today is 4.40% APY from LendingClub with no minimum opening deposit required.

The amount of interest you can earn from a savings account depends on the annual percentage rate (APY), with interest typically compounding daily. For example, $1,000 in a savings account at 0.41% with daily compounding would grow to $1,004.11 after one year. Choosing a high-yield savings account at 4% APY would result in a balance of $1,040.81 after a year.

The more you deposit in a savings account, the more you stand to earn. For instance, a $10,000 deposit in a high-yield savings account at 4% APY would yield a total balance of $10,408.08 after one year. It’s essential to take advantage of today’s high savings rates before they potentially decrease.

Read more: Best high-yield savings interest rates today, May 4, 2025 (best accounts offering 4.40% APY)