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Interest rates on savings accounts are falling. You can now earn 5.84% or more on your savings.
Looking for an account to save for a rainy day or retirement? Here are some of the best savings rates you can find today.
Related: Compare the best high-yield savings accounts
Highest savings account interest rates today
Source: Curinos. Data correct as of August 9, 2024.
Interest rates for traditional savings accounts today
Traditional savings accounts, known in banking as statement savings accounts, are notorious for paying paltry interest rates. That changed last year thanks to the Fed’s rate-hiking campaign to combat inflation. But even though the Fed hasn’t raised its interest rate since July 2023, yields on consumer deposits remain high.
The current highest interest rate for a standard savings account with a minimum deposit of $2,500 is 5.84%, according to data from Curinos. If you can snag a basic savings account with an interest rate in that range, you’ve got a good deal. A week ago, the best rate was also 5.84%.
The average annual interest rate for a traditional savings account today is 0.23%, says Curinos. The annual percentage yield shows the actual return your account will earn in a year. It includes compound interest, which is interest that accrues on the interest already in your account.
Interest rates for high-yield savings accounts today
High-yield savings accounts typically offer significantly higher interest rates than traditional savings accounts. The catch, however, is that you may have to meet strict requirements from the bank or credit union. Often, this means you’ll need to make a large deposit to open the account.
For high-yield accounts with a minimum deposit of $10,000, the current best rate is 5.35%, unchanged from a week ago.
The average APY for these accounts is now 0.24% APY, about the same as a week ago.
For high-yield savings accounts with a minimum deposit of $25,000, the highest interest rate offered today is 4.97%. You’ll be fine if you can snag an account with an interest rate close to 4.97%. This time last week, the best rate was a similar 4.97%.
The current average is 0.25% APY for a high yield account with a minimum deposit of $25,000, which is the same as last week’s APY.
How often do interest rates on savings accounts change?
Interest rates on savings accounts tend to fluctuate in response to changes in other interest rates throughout the economy. Savings rates are primarily influenced by Federal Reserve interest rate movements, and the central bank raised its federal funds rate several times between 2022 and 2023 to keep inflation under control. With inflation still high but slowly cooling, the federal funds rate has remained stable since July 2023.
So far this year, interest rates on deposit accounts have remained largely stable. Savings yields, which remain favorable for consumers, are expected to decline starting in 2024 if the Federal Reserve decides to cut interest rates, but that will likely not happen until later in the year.
How high can savings interest rates rise?
That is difficult to say – it depends on the development of inflation and the overall economy.
The highest interest rates in recent history were recorded in the early 1980s, when the Fed raised the benchmark interest rate to over 19% in response to record inflation, which led to annual price increases of over 14%.
The average savings account types – such as the relationship account or the youth, senior and student accounts – were not yet taken into account in the calculation in the early 1980s.
