Current Savings Account Interest Rates and 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 0.45%, it’s important to shop around for the best rates available.

Thanks to the Fed’s actions, some banks are offering savings rates upwards of 5% APY. These high rates may not last long, so now is the time to consider opening a high-yield savings account to take advantage of these lucrative offers.

When it comes to earning interest on your savings, the amount you can earn depends on the annual percentage rate (APY) and how often interest compounds. For example, with a $1,000 deposit in a savings account at 0.45% interest with daily compounding, you would earn just $4.51 in interest after one year. However, with a high-yield savings account offering 5% APY, that same $1,000 deposit would earn you $51.27 in interest over the same period.

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.

With savings interest rates expected to fall as the Fed potentially lowers its target rate later this year, now is the time to take advantage of the high rates available. Be sure to explore the best savings rates from verified partners to maximize your earnings.