The average savings account interest rate as of February 2024 is only 0.46%, according to the Federal Deposit Insurance Corp. Cash App’s savings yield, however, is competitive with some of the best high-yield savings accounts available. Putting your money in a high-yield product that earns 4.50% can help your savings grow much faster over time. Here’s an example:
According to a compound interest calculator, if you have a $1,000 balance in an account that earns 4.50%, you would earn just under $47 in interest after a year. That same $1,000 in a basic savings account that earns only 0.5%, for example, would earn only about $5 in that same time frame. Neither amount makes you instantly rich, but the extra money adds up over time.
Source: nerdwallet.com