Savings interest rates today, December 21, 2024 (best account provides 4.75% APY)

Today’s savings account interest rates are among the highest we’ve seen in more than a decade thanks to several rate hikes by the Federal Reserve.

However, the Fed finally cut its target interest rate three times in late 2024, which means savings rates are falling. So it’s important to make sure you’re getting the best interest rate possible when you shop for a savings account. Below is a summary of savings rates today and where to find the best offers.

It national average savings account interest rate is 0.42%, according to the FDIC.This may not sound like much, but consider that it was just 0.06% three years ago.

While the national average savings rate is quite low compared to other types of accounts (such as CDs) and investments, the best savings rates on the market today are much higher.In fact, some leading accounts currently offer 4% APY and higher.

The highest savings account rate available today from our partners is 4.75% APY.This rate is offered by Poppy Bank ($1,000 minimum deposit required).

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

Related to: Today’s 10 Best High Yield Savings Accounts>>

The amount of interest you can earn on a savings account depends on it the annual interest rate (APY): This is the amount of your total earnings after one year, taking into account the base rate and how often interest is compounded (savings account interest is usually compounded daily).

Let’s say you put $1,000 into a savings account at an average interest rate of 0.42% compounded daily.At the end of a year, your balance will grow to $1,004.21, your initial $1,000 deposit, plus just $4.21 in interest.

Now let’s say you choose a high-yield savings account that offers a 4% APY, in which case your balance will grow to $1,040.81 over the same period, which includes $40.81 in interest.

If we take our example of a high-yield savings account with a 4% APY but a $10,000 deposit, your total balance after one year would be $10,408.08, which means you will earn $408.08 in interest

Read more. What is a good savings account interest rate?