Today's savings account interest rates are among the highest we've seen in more than a decade as a result of a number of rate hikes by the Federal Reserve.
However, the Fed finally cut its target rate three times at the end of 2024, meaning savings interest rates are falling. So it's important to make sure you get the best possible rate when looking for a savings account. The following is a breakdown of today's savings interest rates and where to find the best offers.
The national average savings account rate is 0.42%, according to the FDIC. This may not seem like much, but consider that three years ago it was just 0.06%.
Although the national average savings interest rate is fairly 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 right now offer 4% APY and higher.
Today, the highest savings account rate available from our partners today is 4.75% APY. This rate is offered by Poppy Bank ($1,000 opening deposit required).
Here's a look at some of the best savings rates available today from our trusted partners:
Related: 10 best high yield savings accounts today >>
The amount of 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 taking into account the base interest rate and how often interest compounds (savings account interest usually accrues daily).
Say you put $1,000 into a savings account at an average interest rate of 0.42% compounded daily. At the end of a year, your balance would grow to $1,004.21 – your initial deposit of $1,000, plus just $4.21 in interest.
Now, let's say you choose a high-yield savings account that offers 4% APY 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 in a savings account, the more you earn. If we took the same example of a high yield savings account at 4% APY, but deposited $10,000, your total balance after one year would be $10,408.08, which means you would earn $408.08 in interest. in
Read more: What is a good savings account rate?