High-Yield Savings Accounts Now Pay 10x the National Average
A depositor earns more interest on their balance in their account balance in a high-yield savings account than in one earning the national average rate. The FDIC national average savings rate is 0.39% APY. High-yield savings account APYs currently range between 3.20% and 5.00%. Varo Savings offers 5.00% APY on balances up to $5,000. The difference in yield between the national average and top accounts is 4.61 percentage points. This trend is driven by the Federal Reserve's rate cuts since late 2024, which prompts banks to lower high-yield savings account APYs. A $25,000 balance earns $1,000 at 4.00% APY, compared to $750 at 3.00% APY.
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