Savings interest rates today, January 18, 2025 (best accounts offering 4.75% APY)
The Federal Reserve has cut its target rate three times by the end of 2024, meaning savings interest rates are falling from their historic highs. When shopping for a savings account, it’s important to make sure you’re getting the most amount possible. The following is a list of today’s savings interest rates and where to find the best deals.
According to the FDIC, the national average savings account rate is 0.42%. This may not seem like much, but consider that three years ago, it was only 0.06%, a significant increase in such a short period of time.
Today, the highest savings account rate available from our partners is 4.75% API. This price is provided by Openbank and there is a minimum opening deposit of $500.
These rates may not be much higher, so consider opening a high-income savings account to take advantage of today’s higher rates.
Check out some of the best savings rates available today from our verified partners.
Related: Today’s 10 Best High Yield Savings Accounts>>
The amount of interest you can earn from a savings account is determined by the annual percentage rate (APY). This is a measure of your total income after one year, taking into account the base interest rate and how often the interest compounds (savings account interest typically compounds daily).
Say you put $1,000 into a savings account at an average interest rate of 0.42% with daily compounding. At the end of one year, your balance will grow to $1,004.21 – your original $1,000 deposit plus just $4.21 in interest.
Now let’s say you choose a high-yield savings account that offers 4% APR instead. In this case, your balance would increase to $1,040.81 at the same time, adding $40.81 in interest.
The more you put into a savings account, the more you stand to earn. Taking our same example, if you deposit $10,000 in a high-yield savings account with a 4% APR, your total balance after one year will be $10,408.08, meaning That means you will earn $408.08 in interest. .
Read more: What is a good savings account size?
