Savings account interest rates drop as top rate reaches 4.75% APY on January 6, 2025

As of January 6, 2025, the highest savings account interest rate is 4.75% APY, offered by Openbank with a $500 minimum deposit. This marks a decline in rates following three cuts to the federal funds rate this year. High-yield savings accounts generally provide better rates than traditional accounts. The national average savings account rate is currently 0.42%, while 1-year CDs average 1.83%, indicating a significant gap between average and top rates. Consumers are encouraged to compare rates and account features from various banks. Factors to consider include minimum balance requirements, fees, customer service, and FDIC insurance for protection.