The federal reserve reduced its target rate three times at the end of 2024, which means that savings interest rates decreased by their historical heights. It is important to make sure you get the best price possible when shopping for a savings account. The following is a ventilation of savings interest rates today and where to find the best offers.
The national rate of the average savings account is 0.41%, according to the FDIC. This may not seem much, but consider that three years ago, it was only 0.06%, reflecting a strong increase in a short time.
Today, the highest savings account rate available from our partners today is 4.30% APY. This rate is offered by Cit Bank and a minimum deposit of $ 5,000 is required.
Read our Cit Bank full examination
Since these rates may not be there much longer, plan to open a high -efficiency savings account now to take advantage of the high rates of today.
Here is an overview of some of the best savings rates available today from our verified partners:
In relation: 10 best high -performance savings accounts today >>
The amount of interest that you can earn from a savings account depends on the annual percentage rate (APY). This is a measure of your total profit after a year when you consider the basic interest rate and the frequency in which the interest is made up (the interests of the savings account are generally composed daily).
Suppose you put $ 1,000 in a savings account at the average interest rate of 0.41% with daily composition. After a year, your balance would drop to $ 1,004.11 – your initial deposit of $ 1,000, plus $ 4.11 in interest.
Now let’s say that you choose a high -performance savings account that offers 4% APY instead. In this case, your balance would drop 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 get out of it. If we have taken our same example of a high yield savings account at 4% APY, but we deposit $ 10,000, your total balance after a year would be $ 10,408.08, which means that you would earn $ 408.08 in interest.
Find out more: What is a good savings account rate?
