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Key Takeaways
- Savings account yields are much higher than a few years ago
- Top rates may fall as the Federal Reserve cuts interest rates
- Online banks tend to offer the best yields available
Rates on savings accounts are mixed compared to one week ago. You can now earn 6.82% or higher on your savings.
In the market for an account where you can put some money aside? Here’s a look at some of the best savings rates you can find today.
Related: Find the Best High-Yield Savings Accounts Of 2024
Highest Savings Account Rates Today
Source: Curinos. Data accurate as of December 17, 2024.
Traditional Savings Account Rates Today
Traditional savings accounts, called “statement savings accounts” within the banking industry, were notorious for paying meager interest in the aftermath of the Great Recession. Rates have been on the rise in recent years, and you can earn even more if you know where to look. For instance, online banks and credit unions often pay much higher rates than brick-and-mortar banks.
Today’s highest APY on a standard savings account with a $2,500 minimum deposit requirement is 6.82%, according to data from Curinos. If you spot a basic savings account with a rate in that ballpark, you’ve found a good deal. One week ago, the best yield was 5.35%.
Today’s average APY for a traditional savings account is 0.23%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account.
High-Yield Savings Account Rates Today
High-yield savings accounts generally pay considerably more interest than conventional savings accounts. But the trade-off is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit.
On high-yield accounts requiring a minimum deposit of $10,000, today’s best interest rate is 6.82%. That’s up from 5.35% one week ago.
The average APY for those accounts is now 0.23% APY, about the same as a week ago.
On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 6.82%. You’ll be in good shape if you can find an account offering a rate close to 6.82%. Last week at this time, the best rate was 4.41%.
The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. That’s about the same as last week’s APY.
How Often Do Savings Account Interest Rates Change?
Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve’s rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to its 2% goal.
Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC).
How High Can Savings Rates Go?
There really is no way to know for sure—it depends on the health of the economy and the state of inflation.
The highest interest rates in recent memory were seen in 1980 and 1981 when the Fed sent the federal funds rate soaring above 19%. That was in the face of runaway inflation that had prices rising at an annual rate of more than 14%.
In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to the Federal Reserve. Savings rates would eventually fall as inflation cooled off and the federal funds rate was brought back down.
Methodology
Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation.
Frequently Asked Questions (FAQs)
What is a good interest rate for a savings account?
The best high-yield savings account pays 6.82% now, according to Curinos data, so you’ll want to aim for an account that delivers a yield in that ballpark.
But rates aren’t everything. You want an account that charges few fees, offers great customer service and has a track record of being a stable institution.
How are savings account interest rates determined?
Savings yields are variable and can change depending on economic conditions or a bank’s particular financial need. Usually rates are influenced by the federal funds rate, meaning that a bank tends to raise or lower its rates along with the Fed.
Online banks and credit unions tend to offer the best yields because they can pass along savings from low overhead while also striving to attract new customers.