The Federal Reserve has reduced its target interest rate three times in 2024, causing high-yield savings account rates to fall. However, some top accounts still offer above 4% APY. To find the best deals, research and compare offers.
Currently, the average interest rate on a traditional savings account is just 0.41%, according to the FDIC. High-yield accounts, however, often pay much more. As of March 18, 2025, Openbank’s high-yield savings account offers 4.40% APY with a $500 minimum opening deposit.
Top High-Yield Savings Accounts:
Our partners offer competitive rates on high-yield savings accounts. Here are some top options:
* Openbank: 4.40% APY (minimum $500 opening deposit)
* [Other partner accounts available]
Historical Savings Account Rates:
Savings account interest rates have fluctuated over the past decade, influenced by economic events and the Federal Reserve’s actions. After 2008 financial crisis, rates dropped to near-zero in 2010-2015. Following COVID-19 pandemic, rates decreased again from 2020 to mid-2021.
The Fed’s recent interest rate hikes led to a recovery in savings account rates, but they began falling once more after the federal funds rate cuts in September, November, and December 2024.
Choosing the Right High-Yield Savings Account:
Despite rising interest rates, average savings account rates remain low. For short-term goals like emergency funds or down payments, high-yield savings accounts are ideal. However, for long-term goals, such as retirement or education savings, other investments might be more suitable.
Consider shopping around and finding an account with competitive rates and minimal fees to achieve your financial goals.
Source: https://finance.yahoo.com/personal-finance/article/savings-interest-rates-today-tuesday-march-18-2025-100055428.html