The Federal Reserve has cut interest rates three times this year, affecting deposit accounts and making it essential to find high-yield savings accounts. These accounts offer higher interest rates than traditional savings accounts, sometimes as much as 4% Annual Percentage Yield (APY) and more.
To maximize your earnings, research the best banks offering these top-notch rates. Currently, Openbank is offering a 4.75% APY rate with a $500 minimum deposit required. However, most top savings rates come from online banks due to lower overhead costs, which they pass on to customers in the form of higher interest and lower fees.
As of January 6, 2025, here are some of the best high-yield savings accounts available:
* Openbank: 4.75% APY with a $500 minimum deposit
* Top online banks: offering competitive rates with low overhead costs
The national average savings account rate is relatively low at 0.42%, while 1-year CDs pay an average of 1.83%. The Fed’s expected lower target rate in 2025 means now is the time to take advantage of today’s high interest rates.
When choosing a savings account, consider factors beyond just interest rates, such as customer service, digital banking tools, and financial stability. Ensure the institution is FDIC-insured or NCUA-insured for protection against failure.
Read more about finding the best savings account for your needs.
Source: https://finance.yahoo.com/personal-finance/banking/article/savings-interest-rates-today-monday-january-6-2025-110016519.html