Rates on savings accounts are increasing. You can now earn 4.41% or higher on your savings.
In the market 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 paltry 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 4.41%, according to data from Curinos. If you spot a basic savings account with a rate in that range, you’ve found a good deal. One week ago, the best yield also was 4.41%.
Today’s average APY for a traditional savings account is 0.22%, Curinos says. 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 generally pay substantially higher interest than a conventional savings account. But the trade-off is you’ll have to meet strict conditions laid down by 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 4.41%. That’s unchanged from 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 4.41%. You’ll do well if you can nail down an account with a rate close to 4.41%. Last week at this time, the best rate was a similar 4.41%.
The current average is 0.22% APY for a high-yield account with a $25,000 minimum deposit. That’s above last week’s 0.21%.
Money Market Account Savings Rates Today
Money market accounts (MMAs) are savings accounts that have some of the properties of checking accounts. Typically, you can write checks and enjoy debit card privileges.
MMAs tend to pay at least slightly higher interest than a standard savings account. The FDIC says the average MMA rate is 0.61%, versus 0.42% for a traditional savings account.
But today, the best money market accounts have rates as high as 5.05%. That’s above the top rate of 5.00% from one week ago.
The average APY for an MMA is now 0.50%, up from 0.49% last week at this time, according to Curinos.
Related: Savings Rates Forecast July 6, 2023
How Often Do Savings Account Interest Rates Change?
Interest rates on savings accounts typically are variable, meaning they can go up or down as other rates change throughout the economy. Savings rates are often influenced by the Federal Reserve’s rate moves, and the central bank in recent months has been pushing up its benchmark federal funds rate to try to get inflation under control.
But while financial institutions are usually quick to boost credit card rates and other borrowing costs as the Fed raises rates, they tend to take their time with increasing the interest paid to savers. Rates on savings accounts have been rising slowly, and that’s likely to continue throughout 2023 as the Fed remains active.
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.
