Today’s savings account rates are among the highest we’ve seen in over a decade, following several rate hikes by the Federal Reserve. Still, savings rates vary widely from bank to bank, so it’s important to make sure you’re getting the best rate possible when shopping around for a savings account. Here’s a look at today’s savings rates and where to find the best deals.
Overview of savings interest rates today
According to the FDIC, the national average savings account rate is 0.46%. That may not sound like much, but consider that two years ago it was only 0.07%, which represents a sharp increase in a short period of time.
This is largely due to monetary policy decisions by the Fed, which began raising its benchmark interest rate in March 2022 to combat skyrocketing inflation. Since then, the Fed has raised rates 11 times, though it has halted further rate hikes in 2024. Experts believe the Fed will finally begin cutting its target rate in September, meaning deposit rates, including savings rates, will likely begin to fall.
While 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 over 5% APY.
For example, Poppy Bank currently offers the highest savings account interest rate today, at 5.50% APY for its Premier Online Savings Account. The minimum opening deposit is $1,000 and this interest rate is guaranteed for three months.
Betterment also offers an account with 5.50% APY. However, this is a cash management account for brokerage clients and not a traditional savings account. There is no minimum opening deposit required.
Since these rates may no longer apply, you may want to consider opening a high-yield savings account now to take advantage of today’s high rates.
Below you will find some of the best savings rates currently available from our verified partners:
Related: 10 Best High Yield Savings Accounts Today >>
How much interest can I get with a savings account?
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 interest is compounded (savings account interest is typically compounded daily).
Let’s say you put $1,000 in a savings account at an average interest rate of 0.45% with daily compounding. At the end of a year, your balance grows to $1,004.51 — your initial deposit of $1,000, plus just $4.51 in interest.
Let’s say you choose a high yield savings account that offers 5% APY. In this case, your balance would grow to $1,051.27 over the same period, including $51.27 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 5% APY, 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 interest rate?
