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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 5.84% or higher on your savings.
In the market for an account where you can park some cash? 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 5, 2024.
Traditional Savings Account Rates Today
Traditional savings accounts, often called “statement savings accounts” in the banking industry, were notorious for paying puny interest rates for more than a decade after the Great Recession. But you can find much higher yields now, especially from online banks and credit unions.
The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with a rate in that ballpark, you’ve done well for yourself.
Today’s average APY for a traditional savings account is 0.23%, Curinos says. APY, or annual percentage yield, accurately represents the actual amount your account will earn during one year. It factors in compound interest, which is the interest that builds up on the interest in your account.
High-Yield Savings Account Rates Today
High-yield savings accounts generally pay much more interest than conventional savings accounts. But the catch 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 5.35%. That’s unchanged from 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 4.41%. You’ll be in good shape if you can find an account offering a rate close to 4.41%. Last week at this time, the best rate was 4.43%.
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 High Can Savings Rates Go?
That’s tough to say—it depends on the path of inflation and the overall economy.
The highest interest rates in recent history were seen in the early 1980s when the Fed hiked the federal funds rate to over 19%. That was in response to record-breaking inflation that had prices rising at a rate of over 14% annually.
In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to Federal Reserve data. Savings rates eventually fell as inflation cooled 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 5.84% 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.