Find out how much you may make with today’s savings rates. The Federal Reserve dropped its target rate three times in late 2024, lowering savings interest rates from their historic highs. When shopping for a savings account, make sure you get the best rate available. The following is a breakdown of current savings interest rates and where you may find the best deals.
An overview of today’s savings interest rates
The national average savings account rate is 0.41%, according to the FDIC. This may not seem like much, but three years ago it was only 0.06%, indicating a significant increase in a short amount of time.
Our partners now provide the highest savings account rate of 4.36% APY. VIO Bank offers this rate, with no minimum initial deposit necessary.
Because these rates may not last long, you should open a high-yield savings account right away to take advantage of them.
How much interest can I earn on my savings account?
The annual percentage rate (APY) determines how much interest you can earn on your savings account balance. This is a measure of your total profits after a year, taking into account the base interest rate and the frequency with which interest compounds.
Assume you deposit $1,000 in a savings account with an average interest rate of 0.41% compounded daily. At the end of one year, your balance would be $1,004.11 — the initial $1,000 deposit plus $4.11 in interest.
Assume you want a high-yield savings account with a 4% annual percentage rate. In this scenario, your balance would increase to $1,040.81 during the same time frame, including $40.81 in interest.
The more you deposit into a savings account, the more you can earn. If we used the same example of a high-yield savings account with a 4% APY but deposited $10,000, your total balance after one year would be $10,408.08, resulting in $408.08 in interest.
