Rates on savings accounts are the same compared to a week ago as the Federal Reserve raises interest rates. You can now earn 4.35% or higher on your savings.
In the market for an account where you can park some cash? Here’s a look at some of the best savings rates you’ll find today.
Related: Compare the Best Online Savings Accounts
Highest Savings Account Rates Today
Type
Highest Rate
Average APY
Traditional Savings
4.35%
1.28%
High-Yield Savings (Minimum $10K Deposit)
N/A*
0.24%
High-Yield Savings (Minimum $25K Deposit)
N/A*
0.49%
Money Market Account
4.65%
0.48%
Source: Bankrate.com
*Highest reported in the last week. Data unavailable for today.
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*Highest reported in the last week. Data unavailable for today.
Quoted rates are based on the highest clicked-on rate for each savings type. For banks and credit unions offering the top rates, check out our list of the best high-yield savings accounts.
Savings Rates Today: Traditional Savings Account
Traditional savings accounts, called “statement savings accounts” within the banking industry, have been notorious for paying paltry interest in recent years. That’s slowly changing, thanks to the Fed.
The highest interest rate on a standard savings account within the last week has been 4.35%, according to data from Bankrate.com. If you spot a basic savings account with a rate in that general area, you’ve found a good deal.
The national average rate is just 0.37%, according to the most recent data from the FDIC, the government agency that insures bank deposits. But today’s average APY for a traditional savings account is 1.28%, Bankrate says, and that’s the same as a week ago.
APY, or annual percentage rate, shows the actual return your account will earn during one year. It factors in compound interest, which is the interest that builds up on the interest in your account.
Savings Rates Today: High-Yield Savings Account
High-yield savings accounts generally pay substantially higher interest than a conventional savings account. But the catch is you’ll have to meet strict conditions laid down by the bank or credit union. Often, that means making a large deposit to open the account.
The average APY for high-yield accounts requiring a minimum deposit of $10,000 is now 0.24% APY, the same as a week ago.
The current average is 0.49% APY for a high-yield account with a $25,000 minimum deposit. That’s the same as last week’s APY.
Savings Rates Today: Money Market Account (MMA)
Money market accounts are savings accounts that have some of the properties of checking accounts. Typically, you can write checks and take advantage of debit card privileges.
MMAs tend to pay marginally higher interest than a standard savings account. The FDIC says the average MMA rate is 0.54%, versus 0.37% for a traditional savings account.
But within the last week, the best money market accounts have paid rates as high as 4.65%.
The average APY for an MMA is now 0.48%, the same as this time last week, according to Bankrate.
Related: Savings Rates Forecast 2023
How to Shop for a Savings Account
To find the best savings account for your needs, you first must answer the question: What exactly are you looking for?
An account where you can do your banking in person, at a branch? That would rule out online-only banks. An account that allows for easy withdrawals? That could rule out any account that limits your monthly transactions. An account that pays decent interest? That would rule out a traditional savings account at one of the big banks, because you’re likely to earn just 0.01% or 0.02% APY.
Don’t settle on any option until you’re certain you have a good grasp on the fees you’ll be charged. Savings accounts can ding you with monthly service fees, excess withdrawal fees and returned item fees (if you deposit checks that bounce), among others. Those charges add up and can gnaw away at your savings.
As you shop around, check reviews and ratings of financial institutions and make sure you choose one that will protect your money with federal insurance—from the FDIC or, in the case of credit unions, the NCUA.
How Often Do Savings Account Interest Rates Change?
Interest rates on savings accounts typically are variable, meaning they can go up or down as other rates change throughout the economy. Savings rates are often influenced by the Federal Reserve’s rate moves, and the central bank in recent months has been pushing up its benchmark federal funds rate to try to get inflation under control.
But while financial institutions are usually quick to boost credit card rates and other borrowing costs as the Fed raises rates, they tend to take their time with increasing the interest paid to savers. Rates on savings accounts have been rising slowly, and that’s likely to continue throughout 2023 as the Fed remains active.