Current interest rates on savings accounts are among the highest we’ve seen in more than a decade, due to several rate hikes by the Federal Reserve.
However, at the end of 2024, the Fed ultimately cut its target rate three times, meaning savings rates are falling. So it’s important to make sure you’re getting the best possible interest rate when looking for a savings account. Below is an overview of today’s savings interest rates and where you can find the best offers.
According to the FDIC, the national average interest rate on savings accounts is 0.42%. This may not seem like much, but consider that three years ago this was just 0.06%, reflecting a sharp increase in a short period of time.
Currently, the highest interest rate on savings accounts available from our partners is 4.75% APY. This rate is offered by two banks: Openbank ($500 minimum opening deposit) and Poppy Bank ($1,000 minimum opening deposit).
Since these interest rates may not be around for much longer, consider opening a high-yield savings account now to take advantage of today’s high interest rates.
Here’s a look at some of the best savings rates available today from our verified partners:
Related: Today’s 10 Best High Yield Savings Accounts >>
The amount of interest you can earn on a savings account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base rate and how often the interest is compounded (interest on savings accounts is typically compounded daily).
Suppose you put € 1,000 in a savings account at an average interest rate of 0.42% with daily interest increases. At the end of a year, your balance would rise to €1,004.21 – your initial deposit of €1,000, plus only €4.21 in interest.
Now suppose you choose a high-yield savings account that offers a 4% APY instead. In this case, your balance will grow to €1,040.81 in the same period, including €40.81 in interest.
The more you deposit into a savings account, the more you can earn. If we were to take the same example of a high-yield savings account with a 4% APY interest rate, but deposit $10,000, your total balance after one year would be $10,408.08, meaning you would earn $408.08 in interest.
Read more: What is a good savings account interest rate?
