Current High Savings Account Interest Rates: Where to Find the Best Offers

The Federal Reserve’s recent rate hikes have led to some of the highest savings account interest rates we’ve seen in over a decade. With the national average savings account rate currently at 0.46%, it’s important to shop around for the best rates available.

The Fed’s decision to raise its benchmark rate 11 times since March 2022 has contributed to the increase in savings interest rates. However, experts predict that the Fed may start lowering its target rate later this year, which could lead to a decrease in deposit account rates, including savings interest rates.

Despite the national average being relatively low compared to other accounts and investments, some banks are offering savings rates as high as 5% APY. To take advantage of these high rates before they potentially decrease, consider opening a high-yield savings account now.

The amount of interest you can earn from a savings account depends on the annual percentage rate (APY) and how often interest compounds. For example, with a $1,000 deposit in a savings account at 0.46% interest with daily compounding, you would earn $4.61 in interest after one year. In comparison, a high-yield savings account at 5% APY would earn you $51.27 in interest on the same deposit.

The more you deposit in a high-yield savings account, the more you stand to earn in interest. For instance, a $10,000 deposit in a high-yield savings account at 5% APY would earn you $512.67 in interest after one year.

Overall, it’s essential to compare savings account rates and consider opening a high-yield savings account to maximize your earnings in today’s market.