The Federal Reserve cut its goal rate 3 times in late 2024, which suggests savings rates of interest are falling. So it’s necessary to ensure you’re getting the very best rate possible when shopping around for a savings account. The next is a breakdown of savings rates of interest today and where to seek out the very best offers.

The national average savings account rate stands at 0.42%, in line with the FDIC. This won’t seem to be much, but consider that three years ago, it was just 0.06%.

Although the national average savings rate of interest is fairly low in comparison with other kinds of accounts (resembling CDs) and investments, the very best savings rates in the marketplace today are much higher. In truth, a number of the top accounts are currently offering 4% APY and better.

Today, the very best savings account rate available from our partners today is 4.75% APY. This rate is obtainable by Openbank and there’s a $500 minimum opening deposit required.

Here’s a have a look at a few of the very best savings rates available today from our verified partners:

Related: 10 best high-yield savings accounts today>>

The quantity of interest you’ll be able to earn from a savings account relies on the annual percentage rate (APY). It is a measure of your total earnings after one 12 months when considering the bottom rate of interest and the way often interest compounds (savings account interest typically compounds day by day).

Say you set $1,000 in a savings account at the common rate of interest of 0.42% with day by day compounding. At the top of 1 12 months, your balance would grow to $1,004.21 — your initial $1,000 deposit, plus just $4.21 in interest.

Now let’s say you select a high-yield savings account that provides 4% APY as an alternative. On this case, your balance would grow to $1,040.81 over the identical period, which incorporates $40.81 in interest.

The more you deposit in a savings account, the more you stand to earn. If we took our same example of a high-yield savings account at 4% APY, but deposit $10,000, your total balance after one 12 months could be $10,408.08, meaning you’d earn $408.08 in interest. ​​

Read more: What’s a superb savings account rate?