November 19, 2024 – Forbes Advisor – Technologist

Rates on savings accounts are falling. You can now earn 5.84% or higher on your savings.

Shopping 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: Find the Best High-Yield Savings Accounts Of 2024

Traditional Savings Account Rates Today

Traditional savings accounts, often called “statement savings accounts” in the banking industry, were notorious for paying puny interest rates for more than a decade after the Great Recession. But you can find much higher yields now, especially from online banks and credit unions.

The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with comparable rate, you’ve done well for yourself.

Today’s average APY for a traditional savings account is 0.23%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn during one year. It accounts for compound interest, which is the interest that accrues on the interest in your account.

High-Yield Savings Account Rates Today

High-yield savings accounts typically pay much more interest than conventional savings accounts. But the catch is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit.

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 0.23% APY, about the same as a week ago.

On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 4.43%. You’ll be in good shape if you can get an account offering a rate close to 4.43%. Last week at this time, the best rate was a similar 4.43%.

The current average is 0.25% APY for a high-yield account with a $25,000 minimum deposit. That’s about the same as last week’s APY.

How To Choose A High-Yield Savings Account

Start by comparing the best yields available on the market. There’s no point in opening a high-yield savings account if you’re not actually earning a high yield.

But the interest rate shouldn’t be the only factor you take into account. Consider whether a prospective account has a minimum deposit—and if you can meet it.

You’ll also want to watch out for fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you make more than a certain number of withdrawals in a given month) and other pesky charges that can eat into your returns.

And before you apply for a new account, explore the reputation and safety of the bank or credit union by checking the reviews, seeing what people have to say about customer service and finding out how the financial institution responds to consumer questions.

Choose a bank that’s insured by the FDIC or a credit union insured by the NCUA. Those agencies provide up to $250,000 in insurance per depositor and bank for each account ownership category.

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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