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Rates on savings accounts are mixed compared to one week ago. You can now earn 4.22% or higher on your savings.
In the market for an account where you can put some money aside? Here’s a look at some of the best savings rates you can find today.
Related: Compare the Best High-Yield Online Savings Accounts
Traditional Saving Account Rates Today
Traditional savings accounts, called “statement savings accounts” within the banking industry, are notorious for paying puny interest rates. That’s now changing, thanks to the Fed’s campaign of interest rate hikes to combat inflation.
Today’s highest APY on a standard savings account with a $2,500 minimum deposit requirement is 4.22%, according to data from Curinos. If you score a basic savings account with a rate in that range, you’ve found a good deal. One week ago, the best yield was 4.41%.
But today’s average APY for a traditional savings account is 0.22%, Curinos says, and that’s down from 0.23% a week ago. APY, or annual percentage yield, reflects the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account.
High-Yield Savings Account Rates Today
High-yield savings accounts generally pay substantially higher interest than conventional savings accounts. But the catch is you may have to meet strict conditions laid down by the bank or credit union. Often, that means making a large deposit to open the account.
On high-yield accounts requiring a minimum deposit of $10,000, today’s best interest rate is 4.22%. That’s down from 4.41% one week ago.
On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate offered today is 4.22%. You’ll be in good shape if you can nail down an account offering a rate close to 4.22%. Last week at this time, the best rate was a similar 4.22%.
The current average is 0.23% APY for a high-yield account with a $25,000 minimum deposit. That’s below last week’s 0.24%.
Money Market Account Savings Rates Today
Money market accounts (MMAs) are savings accounts that mix in some of the features of checking accounts. Often, you can write checks and have some debit card privileges.
MMAs tend to pay somewhat higher interest than standard savings accounts. The FDIC says the average MMA rate is 0.62% compared to 0.43% for a traditional savings account.
But today, the best money market accounts have rates as high as 5.08%. That’s above the top rate of 5.05% from one week ago.
The average APY for an MMA is now 0.53%, up from 0.53% last week at this time, according to Curinos.
Related: Savings Rates Forecast August 30, 2023
How Often Do Savings Account Interest Rates Change?
Interest rates on savings accounts typically fluctuate in response as other rates change throughout the economy. Savings rates are primarily influenced by the Federal Reserve’s rate moves, and the central bank has recently been raising its benchmark federal funds rate in an attempt to get inflation under control.
But while financial institutions are usually quick to raise credit card rates and other borrowing costs as the Fed raises rates, they tend to stall when it comes to increasing interest rates on savings. Rates on savings accounts have been rising little by little, and that’s likely to continue throughout 2023.
Methodology
Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation.
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