The Federal Reserve has cut its target interest rate three times by the end of 2024, meaning savings rates will fall. So it’s important to make sure you’re getting the best possible interest rate when looking for a savings account. Below is an overview of today’s savings interest rates and where you can find the best offers.
According to the FDIC, the national average interest rate on savings accounts is 0.42%. This may not seem like much, but consider that three years ago this was only 0.06%.
Although the national average savings rate is quite low compared to other types of accounts (such as CDs) and investments, the best savings rates on the market today are much higher. In fact, some of the best accounts currently offer 4% APY and higher.
Today, the highest savings account interest rate available today from our partners is 4.30% APY. This rate is offered by BMO Alto and no minimum opening deposit is required.
Here’s a look at some of the best savings rates available today from our verified partners:
Related: Today’s 10 Best High Yield Savings Accounts >>
The amount of interest you can earn on a savings account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base rate and how often the interest is compounded (interest on savings accounts is typically compounded daily).
Suppose you put € 1,000 in a savings account at an average interest rate of 0.42% with daily interest increases. At the end of a year, your balance would rise to €1,004.21 – your initial deposit of €1,000, plus only €4.21 in interest.
Now suppose you choose a high-yield savings account that offers a 4% APY instead. In this case, your balance will grow to €1,040.81 in the same period, including €40.81 in interest.
The more you deposit into a savings account, the more you can earn. If we were to take the same example of a high-yield savings account with a 4% APY interest rate, but deposit $10,000, your total balance after one year would be $10,408.08, meaning you would earn $408.08 in interest.
Read more: What is a good savings account interest rate?