The Federal Reserve cut its target rate three times in late 2024, which means savings interest rates are falling below their historic highs. It’s important to make sure you’re getting the best rate when shopping for a savings account. Below is a breakdown of savings interest rates today and where to find the best offers.
According to the FDIC, the national average savings account rate is 0.42%. That may not seem like much, but consider that three years ago, it was only 0.06%, which represents a sharp increase in a short period of time.
Today, the highest savings account rate available from our partners is 4.75% APY. This rate is offered by OpenBank and has a minimum initial deposit of $500.
Since these rates may not last long, consider this Opening a high-yield savings account Now to take advantage of today’s high rates.
Here’s a look at some of the best savings rates available today from our certified partners:
Related: 10 Best High-Yield Savings Accounts Today >>>
It depends on how much interest you can earn from the savings account Annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often the interest is compounded (savings account interest is usually compounded daily).
Say you put $1,000 in a savings account at an average interest rate of 0.42% with daily compounding. At the end of one year, your balance will be $1,004.21 — your initial $1,000 deposit, plus just $4.21 in interest.
Now suppose you choose a high-yield savings account that offers a 4% APY instead. In this case, your balance would be $1,040.81 over the same period, including $40.81 in interest.
The more you deposit in a savings account, the more you stand to earn. If we take our same example of a high-yield savings account at 4% APY, but deposit $10,000, your total balance after one year will be $10,408.08, meaning you’ll earn $408.08 in interest.
read more: What is a good savings account rate?
