Best savings interest rates today, December 25, 2024 (top rate at 4.66% APY)

The Federal Reserve has cut the federal funds rate three times this year, which means deposit rates are now falling high yield savings account may be the solution.

These accounts pay more interest than a regular savings account, 4% APY and higher. Not sure where to find the best savings rates today? Read on to find out which banks have the best offers.

Historically, interest rates on savings accounts have been high traditional savings accounts pales in comparison to those offered for high-yield savings accounts.

For example, the average interest rate on a savings account is only 0.42%, while the best savings rates are usually between 4.0% and 4.5% APY.

The highest savings account rate offered by our partners is 4.66% APY as of December 25, 2024. This rate is offered by VIO Bank and there is no minimum opening deposit required.

Here are some of the best savings rates available today from our verified partners:

Related to: 10 Best High Yield Savings Accounts in 2024>>

Savings account interest rates, including savings rates, are linked the federal funds rate. This is the target interest rate set by the Federal Reserve. when it raises its target interest rate, deposit account rates usually rise. Conversely, when the Fed lowers its rate, deposit rates fall.

After many raising interest rates In response to rising inflation, the Fed finally cut the federal funds rate three times in late 2024. As a result, deposit rates are also falling.

The Fed is expected to cut its target rate two more times in 2025, so we can expect savings account rates to continue to fall. However, high-yield savings accounts remain one of the best places to keep cash safe and the best available to earn interest rates.

Read more. I’m a bond vs. a high-yield savings account. which is better to beat inflation?

Choosing where to put your money is an important decision, and there are several factors you should consider when evaluating your options. earning a solid income Here are some key considerations:

• Interest rates. One of the most important features of a savings account is the interest rate. It’s important to shop around and compare the best offers to make sure your money grows over time. Given that savings rates will drop in the near future, opening a high yield savings account will now allow you to take advantage of historically high rates.

• Objectives: Today’s high-yield savings accounts offer interest rates that we haven’t seen in over a decade. That said, savings rates still don’t match stock market returns. probably not the best place to put your money because your balance won’t grow at a rate that will allow you to reach your goal.However, if you are saving for a financial emergency situations, a down payment on a house or car, gifts for the holiday season, or another short-term goal, a savings account is a great place to store those funds.

• Accessibility. Some types of accounts and investments can provide higher returns than a savings account, but may make it difficult to access your funds in the short term.For example, if you put your savings into a certificate of deposit (CD) and need to access the money before maturity, you may be subject to an early withdrawal penalty, so if you want to be able to draw on your savings as needed, a high-yield savings account is probably a better choice.

• Safety. In most cases, savings accounts are insured by the FDIC up to the federal limit.They too cannot lose money due to market fluctuations, making them a low-risk option.

Read more. Can you negotiate a higher savings account interest rate with your bank?