Best Savings Rates You Can Find As Of April 5, 2025: Earn Up to 4.50% APY

The Federal Reserve made three rate cuts at the end of 2024, causing the interest rates offered by savings accounts to drop. This means when looking for a place to keep your savings, you'll want to make sure you're getting the highest interest rate available.

Here's what you need to know about finding the best savings account rates today.
 

What Are the Current Savings Rates?

Right now, the average interest rate for savings accounts in the country is 0.41%, as reported by the FDIC. Although this might not seem like a lot, especially when you consider that three years ago the average rate was only 0.06%, there are still deals out there that offer much more.

Some of the best savings accounts today offer rates as high as 4% APY or even more. The top rate available from our partner banks is 4.50% APY, offered by Poppy Bank, which does require a $1,000 minimum deposit to open an account.
 

How Much Money Can You Make from a Savings Account?

The amount of money you can earn from a savings account depends on the annual percentage yield (APY). The APY takes into account both the interest rate and how often the interest compounds, which is usually daily for savings accounts.

For example, if you were to put $1,000 into an account with the average rate of 0.41% and daily compounding, you'd have $1,004.11 at the end of a year. That's your original $1,000 plus $4.11 in interest.

However, if you choose a high-yield savings account with a 4% APY, your balance after a year would be $1,040.81, earning you $40.81 in interest. And if you put in $10,000, by the end of the year, you could earn $408.08 in interest with the same 4% APY account.
 

How This Relates to Auto Loans

The interest rates for savings accounts and auto loans are influenced by similar economic factors, including the Federal Reserve's actions. While high-yield savings accounts let you earn more on your deposits, lower interest rates overall can also mean lower rates on auto loans.

This can be a good opportunity to finance or refinance a car since lower interest rates mean you'll pay less over the life of the loan.

Related read: Weighing the Pros and Cons of Refinancing Your Auto Loan for Relief

Just like with savings accounts, it pays to shop around for your auto loan to ensure you're getting the best rate available. Higher savings rates can improve your financial health, and lower auto loan rates can reduce the cost of buying a car.

In summary, the economic environment that affects your savings account also impacts the rates you'll get on an auto loan. Understanding both can help you make smarter financial decisions, whether you're saving money or borrowing for a big purchase like a car.

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