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, in September and November, the Fed finally lowered its target rate, meaning savings rates are also starting to fall. 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 0.43%. This may not seem like much, but consider that just two years ago this was just 0.17%, reflecting a sharp increase in a short period of time.
This is largely due to the monetary policy decisions of the Fed, which began raising its benchmark interest rate in March 2022 to combat skyrocketing inflation. Since then, the Fed has raised rates eleven times, followed by a rate cut in September 2024. This means that interest rates on deposit accounts, including savings rates, are also starting to decline.
Although the national average savings rate is quite low compared to other types of accounts (such as CDs) and investments, the best savings rates on the market today are much higher. In fact, some of the best accounts currently offer more than 5% APY.
For example, the highest savings account interest rate currently available is 5.00% APY. This rate is offered by Openbank and requires a minimum opening deposit of $500.
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 0.45% with daily interest increases. At the end of a year, your balance would rise to €1,004.31 – your initial deposit of €1,000, plus only €4.31 in interest.
Now suppose you choose a high-yield savings account that offers 5% APY instead. In this case, your balance will grow to €1,051.27 in the same period, including €51.27 in interest.
The more you deposit into a savings account, the more you can earn. If we take the same example of a high-yield savings account with a 5% APY interest rate, but deposit $10,000, your total balance after one year would be $10,512.67, meaning you would earn $512.67 in interest. ​​
Read more: What is a good savings account interest rate?
