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, the Fed ultimately cut its target rate in September and again in November, meaning savings account rates are starting to fall. The good news is that many high-yield savings accounts still offer competitive rates. 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%.
Although the national average savings rate is quite low compared to other types of accounts (like 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.
Today, the highest savings account interest rate available today from our partners is 4.55% APY. This rate is offered by CIT Bank and requires a minimum opening deposit of $5,000.
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 0.43% 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?
