Current Savings Account Rates Remain Stable as of September 24, 2024
Editorial Note: Blueprint may earn a commission from affiliate partner links featured on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy for more details.
Verified by an Expert: This article has been thoroughly reviewed and evaluated for accuracy by a financial expert.
As of September 24, 2024, savings account rates have experienced a slight decline in recent weeks, yet they remain significantly higher compared to the same time last year. While high yields are essential when choosing a savings account, it's also important to consider factors such as fees, customer service, and the overall digital experience offered by financial institutions.
Following the Great Recession, savings accounts yielded minimal returns due to the Federal Reserve's low borrowing costs aimed at stimulating economic growth. However, this low-rate environment changed dramatically after the government’s extensive spending during the pandemic. In response to soaring inflation, the Federal Reserve raised interest rates significantly, prompting banks and credit unions to increase rates for savers.
Currently, the highest interest rate available on a standard savings account stands at 5.84%, unchanged from the previous week. According to Curinos, the average annual percentage yield (APY) for traditional savings accounts is now 0.24%, which is a slight increase from last week.
APY reflects the total return your account will generate over a year, factoring in compound interest—the interest earned on both the principal and previously accumulated interest. For example, if you invest $2,500 at the current high rate of 5.84% for one year, you could earn approximately $150 in interest, assuming daily compounding and no additional deposits.
For savings accounts with a minimum deposit requirement of $10,000, the average APY is also 0.24%, slightly lower than last week. However, many financial institutions are offering significantly higher rates. Some of the top high-yield savings accounts currently feature rates of 4.00% or more.
According to Curinos, the highest interest rate available today on a savings account requiring a minimum deposit of $10,000 is 5.35%. If you were to invest $10,000 at this rate for one year, you would earn over $550 in interest, assuming daily compounding and no additional contributions.
Curinos' analysis of average savings account rates focuses on accounts intended for personal use, excluding specific categories such as promotional offers, relationship-based accounts, and accounts for youth, seniors, and students. The average savings rates mentioned are based on minimum deposit amounts of $2,500 or $10,000.