Savings Interest Rates Today, June 23, 2024 (Top Accounts Offering 5.50% APY)

Current savings account interest rates are among the highest we’ve seen in over a decade due to several rate hikes by the Federal Reserve. However, savings interest rates vary widely between banks, so it’s important to make sure you’re getting the best possible rate when looking for a savings account. The following is a breakdown of current savings interest rates and where to find the best deals.

Overview of savings interest rates today

The national average rate for savings accounts is 0.45%, according to the FDIC. That may not seem like much, but consider that just two years ago it was just 0.07%, reflecting a sharp rise in a short period of time.

This is largely due to monetary policy decisions by the Fed, which began raising its benchmark rate in March 2022 to combat soaring inflation. Since then, the Fed has raised rates 11 times, although it has suspended further rate hikes in 2024. Experts believe the Fed will eventually start lowering its target rate later this year, meaning that Deposit account rates, including savings interest rates, will likely begin to fall. autumn.

Although the national average savings interest 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 more students. In fact, some of the best accounts currently offer over 5% APY. Since these rates may not last much longer, consider opening a high-yield savings account now to take advantage of today’s high rates.

Here’s a look at some of the best savings rates available today from our verified partners:

Related: 10 Best High Yield Savings Accounts Today>>

How much interest can I earn with a savings account?

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 interest rate and how often interest is compounded (savings account interest typically compounds daily).

Let’s say you put $1,000 in a savings account with an average interest rate of 0.45% with daily compounding. After a year, your balance would reach $1,004.52 – your initial deposit of $1,000, plus just $4.52 in interest.

Now let’s say you instead choose a high-yield savings account offering a 5% APY. In this case, your balance would increase to $1,051.27 over the same period, which includes $51.27 in interest.

The more you deposit into a savings account, the more likely you are to win. If we take our same example of a high yield savings account at 5% APY, but you deposit $10,000, your total balance after one year would be $10,512.67, meaning you would earn $512 $.67 interest. ​​

Learn more: What is a good savings rate?