Savings Interest Rates Today, January 19, 2025 (Top Accounts Offering 4.75% APR)
The Federal Reserve has cut its target rate three times by the end of 2024, which means 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. Here’s today’s savings rate 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 it was only 0.06% three years ago, 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 instead you choose a high-yield savings account that offers 4% APR. 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 put $10,000 in a high-yield savings account with a 4% APR, your total balance after one year would be $10,408.08, meaning you’d earn $408.08 in interest. .
Read more: What is a good savings account size?
