Best Savings Interest Rates Today, January 21, 2025 (Max Rate at 4.75% APY)

The Federal Reserve lowered interest rates in September. This means that APAI high-yield savings account rates, which have recently been above 5%, are also starting to fall.

To get the highest possible rate of interest on your savings, it’s important to do your research and find competitive offers. Don’t know where to start? Here’s a closer look at today’s savings interest rates and where you can find the best.

According to the FDIC, the average interest rate on a traditional savings account is just 0.42%. However, the best savings rates can be found in high-income accounts, which typically pay 4.5% to 5% APY or higher.

These higher rates are generally offered by online banks, although you can find competitive rates at some credit unions and community banks.

Today, the highest savings account rate available from our partners today is 4.75% API. This rate is provided by Openbank and a minimum opening deposit of $500 is required.

Check out some of the best savings rates available today from our verified partners.

Related: 10 Best High Yield Savings Accounts Available Today>>

Savings account interest rates have changed very little over the past decade. From about 2010 to 2015, rates were rock bottom, hovering around 0.06% to 0.10%. This is largely due to the financial crisis of 2008 and the Federal Reserve’s decision to reduce the target rate to close to zero to stimulate economic growth.

From 2015 to 2018, interest rates began to increase gradually. However, they remain at historically low levels. In the year The outbreak of the Covid-19 pandemic in 2020 has led to another major rate cut as the Fed cuts rates to stimulate the economy. That pushed average savings interest rates down to a new low of 0.05% to 0.06% in mid-2021.

Since then, rates on savings accounts have rebounded sharply, largely in response to the Fed’s interest rate hikes in response to high inflation. However, the Fed finally cut the federal funds rate in September, November, and December 2024, and as a result, the deposit rate has also begun to decline.

Here’s a look at how savings interest rates have changed over the past decade:

Although interest rates have increased significantly since 2021, the average savings account rate is still very low, especially compared to market investments. If you’re saving for a long-term goal, such as a child’s education or retirement, a savings account may not provide the income you need to reach your goal.

On the other hand, if you’re saving for an emergency fund, a down payment, a vacation, or some other short-term goal, a high-income savings account is ideal — especially if you want access to the money as needed. Other deposit accounts, including money markets and CDs, may offer similar or better rates, but limit how often you can withdraw. The key is to shop around and find an account that offers competitive pricing with low or no fees.