The High Yield Savings Illusion: Don't Get Caught Up in the Rate Hype The average interest rate on a traditional savings account is a paltry 0.
38%, according to the FDIC, but high yield savings accounts are offering rates up to 4. 10% APY. This sounds like a sweet deal, but let's not get too caught up in the excitement.
The reality is that these high rates often tie into short term economic fluctuations and may not be sustainable. The federal funds rate set by the Federal Reserve has a significant impact on HYSA rates.