Savings interest rates are falling due to three Federal Reserve rate cuts in late 2024. The national average savings rate is 0.38%, a significant increase from three years ago at 0.06%. The highest savings rate available is 3.9% APY from Sallie Mae® as of July 13, 2025, with no minimum deposit required.

Interest earned in a savings account is determined by the annual percentage rate (APY). For example, with a $1,000 deposit at an average 0.42% rate and daily compounding, you’d earn $4.12 in a year. Choosing a 4% APY account would yield $40.81 in interest over the same period.

The more you deposit, the more you earn in a high-yield savings account. For instance, with a $10,000 deposit at 4% APY, you’d earn $408.08 in interest in one year. Consider opening a high-yield savings account now to take advantage of current high rates.

Read more at Yahoo Finance: Best savings interest rates today, July 13, 2025 (best accounts offering 3.9% APY)