November 22, 2024 – Forbes Advisor – Technologist

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

Searching 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, called “statement savings accounts” in the banking world, have been notorious for paying paltry interest in past years, especially after the Great Recession. That’s changed more recently, and you can find rates 10x than those offered by traditional financial institutions if you opt for an online bank or a credit union.

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 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 often pay much more interest than conventional savings accounts. But the thing to know 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 the same as 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 nail down 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 Find a Savings Account

Whether you’re looking for a traditional savings account, high-yield savings account or MMA, you’ll want to keep a few things in mind.

A high interest rate is important, but it’s not the only factor when picking an account to hold your savings. Another major consideration is whether the account has a minimum deposit—and whether you can meet that requirement.

You’ll also want to watch out for fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you make too many withdrawals) and other pesky charges that can eat into your interest earnings.

And before you apply for an account, be sure you explore the reputation and safety of the bank or credit union. Check the reviews, see what people have to say about customer service and find out how the financial institution responds to consumer questions.

Only consider accounts insured by the FDIC or, in the case of credit unions, the NCUA. Those federal agencies provide up to $250,000 in insurance per depositor and per bank for each account ownership category.

How Often Do Savings Account Interest Rates Change?

Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve’s rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to its 2% goal.

Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC).

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.

Frequently Asked Questions (FAQs)