August 5, 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 save for a rainy day or retirement? 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 notorious for paying puny 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 general area, 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, shows 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 much higher interest than conventional savings accounts. But the thing to know 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.

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 0.25% 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.

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.