High-yield savings rates have dropped, but some still offer over 4% APY

From Yahoo Finance: 2025-05-20 06:00:00

The Federal Reserve cut interest rates three times in 2024, causing high-yield savings rates to drop. Despite this, some accounts still offer over 4% APY. To maximize your savings, research and compare rates. The highest rate available as of May 20, 2025, is 4.3% from EverBank, no minimum deposit required.

Savings rates fluctuated over the past decade. Rates were rock-bottom from 2010-2015 due to the 2008 financial crisis. They gradually rose from 2015-2018, then dropped in 2020 due to the pandemic. Rates have since increased but fell again after the Fed lowered rates in 2024.

Although savings rates have increased, they are still low compared to investments. For long-term goals, like retirement, savings accounts may not yield enough. For short-term goals, high-yield accounts are ideal for easy access. Consider money markets or CDs for higher rates, but with limited withdrawals. Shop around for competitive rates with low fees.

Read more: Best high-yield savings interest rates today, May 20, 2025 (Earn up to 4.3% APY)