Savings account interest rates drop as top rate hits 4.75% APY on January 15, 2025

As of January 15, 2025, the highest savings account interest rate is 4.75% APY, offered by Openbank with a $500 minimum deposit. This marks a decline from previous rates due to recent Federal Reserve cuts to the federal funds rate. The average savings account rate is currently 0.42%, significantly lower than high-yield savings accounts, which typically offer rates between 4.0% and 4.5% APY. The recent Fed rate cuts have led to falling deposit rates. Experts suggest that savings account rates may continue to decrease in 2025, following the Fed's decision to lower rates three times in late 2024. High-yield savings accounts remain a popular option for earning better interest on deposits.