The Federal Fund broke its target rate three times at the end of 2024, which means that savings interest rates fall from their historical highlights. It is important to make sure you get the best possible rate when shopping around for a savings account. The following is an analysis of today's savings interest rates and where to find the best offers.
The national average savings account rate is 0.41%, according to the FDIC. This may not seem like much, but consider that it was only 0.06%three years ago, reflecting a sudden increase in a short period of time.
Today, the highest savings account rate available from our partners today is 4.41% APY. This rate is offered by Vic Bank and does not require a minimum opening deposit.
As these rates may not be around much longer, consider Open a high product savings account Now to take advantage of today's high rates.
Here's a look at some of the best savings rates available today by our partners checked:
Related: 10 Best High Product Savings Counts Today >>
The size of the interest you can earn from a savings account depends on the annual percentage rate (Apy). This is a measure of your total earnings after a year when considering the basic interest rate and how often interest composes (savings account interest usually composes daily).
Say you put $ 1,000 in a savings account at the average interest rate of 0.41% with a daily compound. At the end of a year, your balance would grow to $ 1,004.11 – your initial $ 1,000 deposit, plus only $ 4.11 in interest.
Now, let's say you're choosing a high -product savings account that offers 4% app instead. In this case, your balance would grow to $ 1,040.81 over the same period, which includes $ 40.81 in interest.
The more you deposit it in a savings account, the more you stand to earn it. If we took the same example of a high product savings account at 4% APY, but deposit $ 10,000, your total balance after a year would be $ 10,408.08, which means you would earn $ 408.08 in interest.
Read more: What is a good savings account rate?