Rates on savings accounts are mixed compared to a week ago. You can now earn 4.18% or higher on your savings.
Shopping for an account where you can park some cash? Here’s a look at some of the best savings rates you’ll find today.
Related: Compare the Best High-Yield Online Savings Accounts
Traditional Saving Account Rates Today
Traditional savings accounts, called “statement savings accounts” within the banking industry, have been notorious for paying puny interest in recent years. That’s been changing, thanks to the Fed’s campaign of interest rate hikes.
Today’s highest APY on a standard savings account with a $2,500 minimum deposit requirement is 4.18%, according to data from Curinos. If you score a basic savings account with a rate in that range, you’ve found a good deal. One week ago, the best yield was 4.41%.
But today’s average APY for a traditional savings account is 0.22%, Curinos says, and that’s up from 0.22% a week ago. APY, or annual percentage rate, depicts the actual return your account will earn during one year. It factors in compound interest, which is the interest that builds up on the interest in your account.
High-Yield Savings Account Rates Today
High-yield savings accounts typically pay substantially higher interest than a conventional savings account. But the trade-off is you’ll have to jump through some hoops for the bank or credit union. Often, that means making a large deposit to open the account.
On high-yield accounts requiring a minimum deposit of $10,000, today’s best interest rate is 4.18%. That’s down from 4.41% one week ago.
The average APY for those accounts is now 0.22% APY, about the same as a week ago.
On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate offered today is 4.18%. You’ll do well if you can nail down an account with a rate close to 4.18%. Last week at this time, the best rate was 4.41%.
The current average is 0.22% APY for a high-yield account with a $25,000 minimum deposit. That’s the same as last week’s APY.
Money Market Account Savings Rates Today
Money market accounts (MMAs) are savings accounts that mix in some of the features of checking accounts. Typically, you can write checks and have some debit card privileges.
MMAs tend to pay somewhat higher interest than a standard savings account. The FDIC says the average MMA rate is 0.63%, versus 0.42% for a traditional savings account.
But today, the best money market accounts have rates as high as 5.05%. That’s steady with the top rate of 5.05% from one week ago.
The average APY for an MMA is now 0.51%, up from 0.51% last week at this time, according to Curinos.
Related: Savings Rates Forecast July 19, 2023
How to Shop for a Savings Account
To find the best savings account for your needs, you first must answer the question: What exactly are you looking for?
An account where you can do your banking in person, at a branch? That would rule out online-only banks. An account that allows for easy withdrawals? That could rule out any account that limits your monthly transactions. An account that pays decent interest? That would rule out a traditional savings account at one of the big banks, because you’re likely to earn just 0.01% or 0.02% APY.
Don’t settle on any option until you’re certain you have a good grasp on the fees you’ll be charged. Savings accounts can ding you with monthly service fees, excess withdrawal fees and returned item fees (if you deposit checks that bounce), among others. Those charges add up and can gnaw away at your savings.
As you shop around, check reviews and ratings of financial institutions and make sure you choose one that will protect your money with federal insurance—from the FDIC or, in the case of credit unions, the NCUA.
Methodology
Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as those including promotional offers, relationship-based accounts, private, youth, senior and student/minor—are not considered in the calculation.
