October 28, 2024 – Forbes Advisor – Technologist

Rates on savings accounts are mixed compared to one week ago. You can now earn 5.84% or higher on your savings.

Shopping for an account where you can put some money aside? Here’s a look at some of the best savings rates you can find today

Related: Compare the Best High-Yield Savings Accounts

Traditional Savings Account Rates Today

Traditional savings accounts, called “statement savings accounts” within the banking industry, are notorious for paying teensy interest rates. But it’s easy to find rates 10x higher if you know where to look. For instance, online banks and credit unions often pay much higher rates than brick-and-mortar banks.

Today’s highest rate on a standard savings account with a $2,500 minimum deposit requirement is 5.84%, according to data from Curinos. If you land a basic savings account with a rate in that general area, you’ve found a good deal. One week ago, the best yield also was 5.84%.

Today’s average APY for a traditional savings account is 0.23%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account.

High-Yield Savings Account Rates Today

High-yield savings accounts typically pay considerably higher interest than conventional savings accounts. But the catch is you may 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 5.35%. That’s unchanged from one week ago.

On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate offered today is 4.64%. You’ll be in good shape if you can find an account offering a rate close to 4.64%. Last week at this time, the best rate was a similar 4.64%.

The current average is 0.25% APY for a high-yield account with a $25,000 minimum deposit. That’s the same as last week’s APY.

How Often Do Savings Account Interest Rates Change?

Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve’s rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to the Fed’s 2% goal.

Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC).

Methodology

Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation.