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The Federal Reserve lowered its key interest rate three times at the end of 2024, which means that the savings interest rates fall from its historical highs. When looking for a savings account, it is important to ensure that you receive the best possible interest rate. Below you will find a breakdown of the current savings interest rates and where you will find the best offers.
According to FDIC, the national average interest rate for savings accounts is 0.41 %. That may not seem to be much, but keep in mind that three years ago it was only 0.06 %, which reflects a strong increase in a short time.
Today the highest savings account interest rate available for our partners is 4.75 % effective annual interest. This tariff is offered by OpenBank and there is a minimum deposit of $ 500.
Since these interest rates may not be available for long, you should consider opening a savings account with a high return to benefit from today’s high interest rates.
Here is a look at some of the best savings rates that are now available from our tested partners:
Related: The 10 best savings accounts with a high return today >>
The height of the interest that you can earn with a savings account depends on the effective annual interest rate (APY). This is a measure of your total earnings after one year taking into account the base rate and the interest rate (savings account interest is usually calculated daily).
Suppose you put $ 1,000 at an average interest rate of 0.42 % and daily impact on a savings account. At the end of a year, their credit would grow to $ 1,004.11-their first deposit of $ 1,000 plus only $ 4.11.
Now let’s assume that you choose a savings account with a high return instead, which offers 4 % effective annual interest. In this case, your credit would grow to $ 1,040.81 in the same period, including interest of $ 40.81.
The more you deposit in a savings account, the more you can earn. If we take the same example of high -interest savings account with 4 % effective annual interest, but deposit $ 10,000, your total balance is $ 10,408.08 after one year, which means that you would earn $ 408.08 interest.
Read more: What is a good savings bankruptcy?
