"Deposit rate is 0.38% but annual interest rate up to 10%"... US high-yield savings account 'interest rate gap'

▲ Bank, interest rate/AI generated image

While the average US savings account interest rate has dropped to 0.38%, some high-yield products are offering an annual percentage yield (APY) of up to 10%.

According to MarketWatch on September 1 (local time), the average APY for US savings accounts has fallen to 0.38% this year, 1 basis point lower than 12 months ago.

The low average interest rate is due to low-interest products offered by large offline financial institutions. Many large financial institutions are paying almost no interest on savings products, which is dragging down the overall average.

Conversely, some specialized savings accounts offer interest rates significantly higher than the average. MarketWatch reported that among high-yield savings accounts in September, some products offer an APY of up to 10%. However, products offering high interest rates require checking conditions such as applicable balance and eligibility.

As the interest rate gap between savings accounts widens, the importance of choosing a financial institution has grown. Even if the same amount of cash is deposited, the difference in interest received between a regular savings account and a high-yield savings account has become significant.

[Article Key Summary]

-The average APY for US savings accounts is 0.38%, down 1 basis point from 12 months ago.

-Low deposit rates from large offline financial institutions are dragging down the overall average for US savings accounts.

-Some specialized savings accounts offer an APY of up to 10%, showing a significant gap compared to regular savings products.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*