The federal reserve reduced its target interest rate three times in 2024. Consequently, high -performance savings account rates have dropped. That said, some of the best accounts still pay above 4% APY. In order to obtain the highest interest rate possible on your savings, it is important to do your research and find competitive offers. Don’t you know where to start? Here is a more in -depth examination of savings interest rates today and where you can find the best.
The average interest rate on a traditional savings account is only 0.41%, according to the FDIC. However, the best savings rates can be found on high -performance accounts, which often pay much more.
As of May 13, 2025, the highest savings account rate available from our partners was 4.30% APY. This rate is offered by Everbank and no minimum opening deposit is required.
Here is an overview of some of the best savings rates available today from our verified partners:
Over the past decade, interest rates in the savings account have fluctuated a lot. From 2010 to around 2015, the rates were rock, oscillating approximately 0.06% to 0.10%. This was largely due to the 2008 financial crisis and the federal reserve decision to reduce its target rate to almost zero in order to light economic growth.
From 2015 to 2018, interest rates began to increase gradually. However, they remained low according to historical standards. Then, the start of the COVVI-19 pandemic in 2020 led to another significant decrease in rates, because the Fed once again reduced rates to stimulate the economy. This reduced average savings interest rates to new stockings, or 0.05% to 0.06% by mid-201.
Since then, savings account rates have recovered considerably, widely motivated by increases in Fed interest rates in response to arrow inflation. However, the Fed finally lowered the rate of federal funds in September, November and December 2024 and, therefore, the deposit rates also begin to lower.
The following is an overview of how savings interest rates have changed in the past decade:
Despite the fact that interest rates have increased considerably since 2021, the average savings account rate is still quite low, in particular compared to investment in the market. If you save for a long -term objective such as the education or retirement of a child, a savings account will probably not generate the necessary yields to achieve your objective.
On the other hand, if you save for an emergency fund, a deposit, vacation or other short -term objective, a high -performance savings account is ideal – especially if you want to access funds as needed. Other types of deposit accounts, including monetary markets and CDs, can offer similar or even better tariffs, but restrict the frequency to which you can make withdrawals. The key is to go around and find an account that provides a competitive rate with low or not costs.
