economy
Is 4% still a good high-yield savings account interest rate?
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TL;DR
- A 4% interest rate is generally considered good for high-yield savings accounts.
- Shopping around online can lead to rates around 4.10% to 4.15% or higher.
- Federal Reserve rate hikes could potentially increase savings rates later in the year.
- Online banks typically offer higher rates than traditional banks due to lower operational costs.
- For CDs, 4% is a good rate for 3-month terms but less so for 1-year or 18-month terms, which offer higher competitive rates.
- CD rates are fixed and do not adjust with market interest rate changes.
- Traditional savings accounts offer very low average rates (0.38%) and are not recommended for maximizing earnings.