April 18, 2024 – Forbes Advisor – Technologist

Rates on savings accounts are mixed compared to one week ago. You can now earn 5.84% 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 Savings Account Rates Today

Traditional savings accounts, called “statement savings accounts” within the banking industry, are infamous for paying teensy interest rates. That’s gradually changing, thanks to the Fed’s attempt to combat inflation with repeated interest rate hikes.

Today’s highest rate on a standard savings account with a $2,500 minimum deposit requirement is 5.84%, according to data from Curinos. If you land a basic savings account with a rate in that ballpark, you’ve found a good deal. One week ago, the best yield also was 5.84%.

Today’s average APY for a traditional savings account is 0.24%, Curinos says. APY, or annual percentage yield, shows 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 often pay substantially higher interest than conventional savings accounts. But the catch is you may have to meet tough requirements set 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 5.35%. That’s unchanged from one week ago.

On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate offered today is 4.97%. You’ll be in good shape if you can nail down an account offering a rate close to 4.97%. Last week at this time, the best rate was a similar 4.97%.

The current average is 0.25% APY for a high-yield account with a $25,000 minimum deposit. That’s the same as last week’s APY.

How High Can Savings Rates Go?

That’s tough to say—it depends on the path of inflation and the overall economy.

The highest interest rates in recent history were seen in the early 1980s when the Fed hiked the federal funds rate to over 19%. That was in response to record-breaking inflation that had prices rising at a rate of over 14% annually.

In the early 1980s, the average five-year CD paid almost 12%, compared to less than 2% today, according to Bankrate data. Savings rates eventually fell as inflation cooled and the federal funds rate was brought back down.

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.