August 14, 2024 – Forbes Advisor – Technologist

Rates on savings accounts are mixed compared to one week ago. You can now earn 5.84% or higher on your savings.

In the market for an account where you can park some cash? Here’s a look at some of the best savings rates you can find today.

Related: Compare the Best High-Yield Savings Accounts

Traditional Savings Account Rates Today

Traditional savings accounts, called “statement savings accounts” within the banking industry, are infamous for paying teensy 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 spot 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 0.24%, Curinos says. Last week, it was 0.24%. APY, or annual percentage yield, reflects 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 typically pay substantially higher interest than conventional savings accounts. But the catch 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 nail down 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 0.26% APY for a high-yield account with a $25,000 minimum deposit. That’s above last week’s 0.25%.

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 types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation.