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Why do high-yield savings account rates fluctuate?
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Why do high-yield savings account rates fluctuate?

Bankrate·Karen Bennett·about 1 month ago
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Your savings account has a variable interest rate, so your bank can choose to raise or lower that rate at any time. Due to this, the yield you’re currently earning might not be the same as it was last year or even last month. While such rate changes are ultimately up to the bank, there are several factors that can influence its decision to move its rates in either direction. These include changes to the federal funds rate , macroeconomic conditions and whether the bank is in need of deposits. Here we’ll go over things that cause savings account rates to fluctuate. Then we’ll provide some tips for finding a savings account that earns a highly competitive yield. What is APY? An account’s annual percentage yield (APY) is a number that indicates how much interest a bank account will earn in a year. It incorporates the effect of compounding interest, which is essentially the interest you earn on interest.…

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