The Federal Reserve has cut its target rate three times in late 2024, leading to falling savings interest rates. If you’re looking for the best rate on a savings account, it’s essential to shop around. Here’s an overview of current savings interest rates and where to find high offers.
According to the FDIC, the national average savings account rate stands at 0.42%. However, top offers are available from partners like Openbank, with rates up to 4.75% APY. With these rates likely to decrease soon, consider opening a high-yield savings account now.
High-Yield Savings Accounts: How Much Interest Can You Earn?
The interest you earn on a savings account depends on the annual percentage rate (APY). Daily compounding typically applies. For example, with an average 0.42% APY, $1,000 grows to $1,004.21 after one year. In contrast, a high-yield savings account with a 4% APY can yield up to $408.08 in interest for a $10,000 deposit.
To find the best offers, check our curated list of top high-yield savings accounts and read more about what makes a good savings account rate.
Source: https://finance.yahoo.com/personal-finance/banking/article/savings-interest-rates-today-sunday-january-18-2025-110042129.html