Discover Today's Best High-Yield Savings Account Rates
As interest rates on savings accounts continue to decline, savvy savers can still find opportunities to earn impressive returns. Currently, you can earn rates of 5.84% or higher on your savings, making it an ideal time to explore your options for saving for emergencies or retirement.
Traditional savings accounts, often referred to as "statement savings accounts" in the banking sector, are notorious for offering low-interest rates. However, with a bit of research, you can uncover rates that are ten times higher. Online banks and credit unions frequently provide significantly better rates compared to traditional brick-and-mortar banks.
According to recent data from Curinos, the highest rate available today on a standard savings account with a minimum deposit of $2,500 is 5.84%. If you manage to secure a basic savings account with this rate, you’ve found a competitive offer. This rate has remained unchanged from the previous week.
The average annual percentage yield (APY) for traditional savings accounts sits at a mere 0.24%, as reported by Curinos. APY reflects the actual return you can expect from your account over a year, factoring in compound interest, which is the interest earned on both the principal and the accumulated interest.
High-yield savings accounts generally offer much higher interest rates than standard savings accounts. However, they often come with stricter requirements, such as a larger initial deposit. For high-yield accounts that require a minimum deposit of $10,000, the best interest rate available today is 5.35%, which has not changed from last week.
For high-yield savings accounts with a minimum opening deposit of $25,000, the top rate currently stands at 4.97%. If you can find an account close to this rate, you’re in a good position. This rate has also remained consistent compared to last week.
The average APY for high-yield accounts with a $25,000 minimum deposit is currently 0.26%, unchanged from the previous week.
When searching for a traditional savings account, high-yield savings account, or money market account (MMA), it’s essential to consider several key factors. While a competitive interest rate is crucial, it’s not the only aspect to evaluate. You should also check if the account has a minimum deposit requirement and whether you can meet it.
Understanding the fee structure is equally important. Savings accounts may incur monthly maintenance fees, charges for exceeding transaction limits, and other fees that can diminish your earnings.
Before opening an account, research the financial institution’s reputation and safety. Trust is paramount; you should feel confident in your bank or credit union. Look for reviews, assess customer service feedback, and understand how the institution handles consumer inquiries.
Ensure that the account is insured by the FDIC or, for credit unions, the NCUA. These federal agencies provide insurance coverage of up to $250,000 per depositor, per bank, for each account ownership category.
Curinos calculates average savings account rates based on accounts intended for personal use, excluding specialized accounts such as relationship-based accounts and those designed for specific demographics like youth, seniors, and students.