Federal reserves reduced the federal funding rate three times at the end of 2024. As a result, the interest rates of deposits fall from their historical maximum.
However, it is possible to find savings accounts with high yields that pay above 4% apy. So, if you are looking for the best available prices today, here’s a break where you can find them.
Although interest rates of savings are elevated by historical standards, the national average rate for savings accounts is still only 0.42%, according to FDIC. GOOD NEWS: High yield savings accounts offer more than 10 times more than a national average.
From January 24, 2025, the highest savings account rate offered by our partners is 4.75% apy. OpenBank offers this rate and requires a minimum deposit to open $ 500.
Here are some of the best prices of savings available today from our proven partners:
Remember, it’s important to buy around before Opening a savings account. Interest rates are very different, but there are several banks (especially, Internet banks) and credit unions with very competitive offers.
Related: 10 of the best savings accounts with high yield >>
Internet banks operate exclusively through the Web. This significantly reduces their overhead costs, so that they can transfer these savings to customers in the form of high deposit and low fees. In fact, many of the best savings accounts with high yields also come from zero monthly fees or minimum deposit opening requirements. If you are looking for the best interest rates of savings, Internet banks are a great place to start.
Accordingly, Internet banks are not the only place you can find savings accounts with rates that move between 4% and 5% APY. Credit union are non -profit financial cooperatives, and they are also known for ensuring competitive rates and smaller fees. Many credit unions have certain requirements that must be fulfilled to become a member, though there are some who allow everyone to join.
Read more: Here’s why Internet banks offer interest rates with the highest savings
Savings accounts are one of the safest places you can put your money to. They are provided by FDIC (or NCUA -EU Credit Union case), which means that your deposits are protected up to $ 250,000 if your financial institution fails. They also cannot lose money due to the market fluctuation.
However, a savings account is not always the right choice. Although today’s interest rates are high in historical standards, they still do not offer the same yields that you could achieve by investing your money on the market. For long -term savings goals, such as retirement, you need to invest most of your savings at higher risk (but a higher prize) investment on the market such as stocks, index funds and mutual funds to achieve your goal.
But if you save for a short -term goal, such as the advance of the house, rest or even Emergency FundA high -yield savings account is one of the best options. This is especially true if you want to access your money as needed; Other types of high -yield accounts, including the bills on the money market and the deposit certificate (CDS), set up greater limitations in how often you can withdraw.
