From Yahoo Finance: 2025-04-08 06:00:00

The Federal Reserve has lowered interest rates three times in 2024, causing high-yield savings account rates to drop. Despite this, some top accounts still offer over 4% APY. Research is key to finding the best rates, with traditional savings accounts only averaging 0.41%. Poppy Bank currently offers the highest rate at 4.50% APY.

Over the past decade, savings account interest rates have fluctuated significantly. Rates were at rock-bottom levels from 2010 to 2015 due to the 2008 financial crisis, then gradually increased until the COVID-19 pandemic in 2020. Recent interest rate hikes by the Fed led to a recovery, but the Fed’s 2024 rate cuts are now causing deposit rates to fall.

While savings rates have improved, they are still relatively low compared to market investments. High-yield savings accounts are ideal for short-term goals, offering accessibility and competitive rates. For long-term goals, other options like money markets and CDs may provide better returns but with restrictions on withdrawals. Shopping around for low-fee accounts is crucial.

Read more: Best high-yield savings interest rates today, April 8, 2025 (top rate at 4.50% APY)