From Yahoo Finance: 2025-03-26 13:19:00

The Federal Reserve recently cut the federal funds rate three times in late 2024, resulting in falling deposit rates. High-yield savings accounts offer as much as 4% APY, far surpassing traditional savings accounts. The average savings account rate is just 0.41%, while the best rates are around 4.0% to 4.5% APY. The highest rate available is currently 4.30% APY from EverBank, with no minimum deposit required.

Deposit rates are influenced by the federal funds rate, set by the Federal Reserve. After multiple interest rate hikes, the Fed lowered its rate three times in late 2024, causing deposit rates to decline. Experts predict two more rate cuts in 2025, leading to further drops in savings account rates. However, high-yield savings accounts remain a secure option to earn the best rates.

When choosing where to put your money, consider factors like interest rates, goals, accessibility, and security. High-yield savings accounts are ideal for short-term savings with historically high rates and FDIC insurance. While they may not match stock market returns, they provide a safe, accessible option for emergencies or specific financial goals.



Read more at Yahoo Finance: Best savings interest rates today, March 26, 2025 (Earn up to 4.30% APY)