March 22, 2024 – Forbes Advisor

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Savings account rates are mixed compared to a week ago. Now you can earn 5.84% or more on your savings.

Are you looking for an account where you can put 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

Source: Curino. Data accurate as of March 21, 2024.

Traditional savings account rates today

Traditional savings accounts, called “statement savings accounts” in the banking industry, are infamous for paying low interest rates. The situation is starting to change, thanks to the Fed’s campaign of interest rate increases to fight inflation.

According to data from Curinos, today’s highest rate on a standard savings account with a minimum deposit requirement of $2,500 is 5.84%. If you find a basic savings account with a rate in that general area, you’ve found a good deal. Even a week ago the best yield was 5.84%.

Today’s average APY for a traditional savings account is 0.23%, Curinos says. APY, or annual percentage yield, shows the actual return your account will get in a year. Includes compound interest, which is interest that is based on the interest already in your account.

High Yield Savings Account Rates Today

High-yield savings accounts typically pay substantially higher interest than conventional savings accounts. But the problem is that you may have to meet strict requirements set by the bank or credit union. Often this means making a large deposit to open the account.

On high-yield accounts that require a minimum deposit of $10,000, today’s best interest rate is 5.35%. That’s unchanged from a week ago.

The average APY for these accounts is now 0.24% APY, about the same as a 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 find an account that offers a rate close to 4.97%. At this time last week the best rate was 4.89%.

The current average is 0.25% APY for a high-yield account with a minimum deposit of $25,000. This is higher than last week’s 0.25%.

How to Buy a Savings Account

To find the savings account that best suits your needs, you must first answer the question: what exactly are you looking for? And you need to understand that different account types have tradeoffs.

If you want to open an account at a traditional bank with branches, this will likely exclude the best interest rates, which are generally available at online-only banks. Many traditional savings accounts at brick-and-mortar banks earn as little as 0.01% or 0.02% APY, while some online-only savings accounts earn more than 4.00% APY.

Don’t settle for any option until you’re sure you have a good understanding of the fees you’ll be charged. Savings accounts can slap you with monthly service fees, excess withdrawal fees, and returned item fees (if you deposit bouncing checks), among others. Those costs add up and can eat away at your savings.

As you shop around, check the reviews and ratings of financial institutions and make sure you choose one that protects your money with federal insurance, either from the FDIC or, in the case of credit unions, from the NCUA.

How often do savings account interest rates change?

Savings account interest rates typically fluctuate in response to changing other rates throughout the economy. Savings rates are primarily affected by Federal Reserve rate movements, and the central bank recently raised its benchmark federal funds rate in an effort to keep inflation in check.

But while financial institutions are usually quick to raise credit card rates and other borrowing costs as the Fed raises rates, they tend to be slow when it comes to raising interest rates on savings. Savings account rates have been rising little by little and will likely continue through 2023.

Methodology

Curinos determines average rates for savings accounts by focusing on those intended for personal use. Some types of savings accounts, such as relationship accounts and accounts intended for young people, seniors and students, are not considered in the calculation.

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