Rates on savings accounts are mixed compared to one week ago. You can now earn 5.84% or higher on your savings.
Searching for an account where you can save for a rainy day or retirement? Here’s a look at some of the best savings rates you can find today.
Traditional Savings Account Rates Today
Traditional savings accounts, called “statement savings accounts” within the banking industry, are known for paying paltry interest rates. That has changed, thanks to the Fed’s campaign of interest rate hikes to combat inflation last year. But even though the Fed hasn’t raised its rate since July 2023, consumer deposit yields remain high.
Today’s highest rate on a standard savings account with a $2,500 minimum deposit requirement is 5.84%, according to data from Curinos. If you score a basic savings account with a rate in that ballpark, you’ve found a good deal. One week ago, the best yield also was 5.84%.
Today’s average APY for a traditional savings account is 0.23%, Curinos says. APY, or annual percentage yield, depicts the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account.
High-Yield Savings Account Rates Today
High-yield savings accounts generally pay substantially higher interest than conventional savings accounts. But the trade-off is you may have to meet tough requirements set by the bank or credit union. Often, that means making a large deposit to open the account.
On high-yield accounts requiring a minimum deposit of $10,000, today’s best interest rate is 5.35%. That’s unchanged from one week ago.
The average APY for those accounts is now 0.24% APY, about the same as a week ago.
On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate offered today is 4.97%. You’ll be in good shape if you can find an account offering a rate close to 4.97%. Last week at this time, the best rate was a similar 4.97%.
The current average is 0.25% APY for a high-yield account with a $25,000 minimum deposit. That’s below last week’s 0.26%.
How Often Do Savings Account Interest Rates Change?
Interest rates on savings accounts typically fluctuate in response to changes in other rates throughout the economy. Savings rates are primarily influenced by the Federal Reserve’s rate moves, and the central bank raised its benchmark federal funds rate several times between 2022 and 2023 in an attempt to control inflation. With inflation still high but cooling slowly, the federal funds rate has held steady since July 2023.
So far this year, earning rates on deposit accounts have been mostly stable. Savings yields, which remain favorable for consumers, are expected to start falling in 2024 when the Federal Reserve issues rate cuts, but this likely won’t happen until later in the year.
How High Can Savings Rates Go?
That’s tough to say—it depends on the path of inflation and the overall economy.
The highest interest rates in recent history were seen in the early 1980s when the Fed hiked the federal funds rate to over 19%. That was in response to record-breaking inflation that had prices rising at a rate of over 14% annually.
In the early 1980s, the average five-year CD paid almost 12%, compared to less than 2% today, according to Bankrate data. Savings rates eventually fell as inflation cooled and the federal funds rate was brought back down.
Methodology
Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation.
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