If you’re looking to boost your savings, a high-yield savings account can provide competitive returns so your balance can grow faster. However, not all banks offer high interest rates. That’s why it’s important to shop around and find the most competitive savings interest rates available. Read on to learn more about where to find the best savings rates.
Savings account interest rates have been on an upward trend for the past two years, but are now trending downward due to the recent Fed rate cuts.
The good news is that many high-yield savings accounts still offer rates of 5% APY and higher. The best rates are typically offered by online banks, although you may be able to find comparable savings interest rates at some credit unions and community banks.
As of November 28, 2024, the highest interest rate on savings accounts offered by our partners is 4.75% APY. This rate is offered by Everbank and no minimum opening deposit is required.
Here’s a look at some of the best savings rates available today from our verified partners:
Related: 10 best savings accounts with high returns >>
After several years of near-zero interest rates, the Federal Reserve began raising the federal funds rate in 2022 to combat rapidly rising inflation. As a result, savings rates also shot up and reached a fifteen-year high.
However, the Fed recently decided to lower the federal funds rate, and savings accounts have started to decline. The Fed is also expected to make more rate cuts in 2025.
It’s difficult to predict exactly how and when interest rates will change in the future, but one thing is certain: the current high interest rates on savings accounts won’t last forever. So if you’re hoping to boost your savings and take advantage of the best rates on the market, there’s no better time than now.
The requirements for opening a savings account vary by financial institution. However, if you’re ready to open an account, you can follow these general steps:
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Research savings account rates: When choosing a savings account, one of the most important factors to evaluate is obviously the interest rates. Make sure you select a savings account with a competitive rate so your money can grow.
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Find out what your must-haves are: While interest on savings accounts should be paramount, it is not the only factor to consider. You’ll also want to think about what else you need from your account, whether it’s no minimum balance requirement, low fees, or other benefits. Finding a savings account with a solid interest rate that will also help you achieve your goals is crucial.
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Prepare documentation: Opening a bank account requires you to provide some important personal information and documents. Before you start your application, make sure you have your social security number, driver’s license or passport number, and proof of address.
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Complete the application: In many cases you can apply for a savings account online. However, some financial institutions may require you to visit the branch in person to sign up. Either way, applying for a new savings account only takes a few minutes. In many cases, you will receive your approval decision immediately.
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Fund your account: Once your savings account application is approved, you will need to add money to the account. Make sure you are aware of the minimum opening deposit requirements and timeline for funding.
Read more: Step-by-step instructions for opening a high-yield savings account
