The Federal Reserve reduced its target interest three times in 2024. As a result, the calculation rates fell with high yields. That said, some of the best bills still pay above 4% APY.
To get the highest possible interest on your savings, it is important to do your research and find competitive offers. Not sure where to start? Here is a further consideration of savings interest rates today and where you can find the best.
According to the FDIC, the average interest rate on a traditional savings account is only 0.41%. However, the best saving rates can be found on high -interest accounts, which often pay much more.
From February 18, 2025, the highest savings account percentage available at our partners is 4.75% APY. This rate is offered by Open Santander and the minimum opening deposit to start is $ 500.
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Here is a look at some of the best savings rates that are available today from our verified partners:
Related: 10 best high-yield savings accounts available today >>
In the past decade, the interest rates of the savings account have been considerably fluctuating. From 2010 to around 2015, the rates were rock bottom and floating with around 0.06% to 0.10%. This was largely due to the financial crisis of 2008 and the decision of the Federal Reserve to reduce its target rate to almost zero to stimulate economic growth.
From 2015 to 2018, interest rates began to gradually rise. However, they remained low according to historical standards. Subsequently, the start of the COVID-19 Pandemie led to a new strong decrease in rates in 2020, because the Fed again reduced the rates to stimulate the economy. This brought average savings interest to new lows, around 0.05% to 0.06% against mid -2021.
Since then his savings account rates have been considerably recovered, largely powered by the interest rate increases of the FED in response to the enveloping inflation. However, the FED finally lowered the federal fund presentation in September, November and December 2024, and as a result, the deposit rates are also starting to fall.
The following is a look at how savings interest rates have changed in the past decade:
Despite the fact that interest rates have risen considerably since 2021, the average savings account percentage is still quite low, especially in comparison with market investments. If you save for a long -term goal, such as the training or retirement of a child, a savings account will probably not generate the returns needed to achieve your goal.
On the other hand, if you save for an emergency fund, down payment of the home, vacation or other short-term target, a high-yield savings account is ideal if you want access to the funds if needed. Other types of deposit accounts, including money markets and CDs, can offer comparable or even better rates, but limit how often you can make recordings. The key is to shop around and find an account that offers a competitive rate with low or no costs.
