Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Rates on savings accounts are mixed compared to one week ago. You can now earn 4.26% or higher on your savings.
Searching for an account where you can save for a rainy day or retirement? Here’s a look at some of the best savings rates you can find today.
Related: Compare the Best High-Yield Online Savings Accounts
| Highest Savings Account Rates Today | ||||
|---|---|---|---|---|
| Type | Highest Rate | Average APY | ||
| Savings (Minimum $2,500 Deposit) | 4.26% | 0.22% | ||
| Savings (Minimum $10,000 Deposit) | 4.51% | 0.23% | ||
| Savings (Minimum $25,000 Deposit) | 4.89% | 0.24% | ||
| Money Market Account (Minimum $10,000 Deposit) | 5.08% | 0.54% | ||
| Source: Curinos. Data accurate as of September 19, 2023. | ||||
Traditional Saving Account Rates Today
Traditional savings accounts, called “statement savings accounts” within the banking industry, are notorious for paying puny interest rates. That’s slowly changing, thanks to the Fed’s attempt to combat inflation with repeated interest rate hikes.
Today’s highest APY on a standard savings account with a $2,500 minimum deposit requirement is 4.26%, according to data from Curinos. If you land a basic savings account with a rate in that ballpark, you’ve found a good deal. One week ago, the best yield was 4.51%.
But today’s average APY for a traditional savings account is 0.22%, Curinos says, and that’s the same as a week ago. APY, or annual percentage yield, depicts the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account.
High-Yield Savings Account Rates Today
High-yield savings accounts generally pay substantially higher interest than conventional savings accounts. But the trade-off is you may have to meet strict conditions laid down by the bank or credit union. Often, that means making a large deposit to open the account.
On high-yield accounts requiring a minimum deposit of $10,000, today’s best interest rate is 4.51%. That’s unchanged from one week ago.
On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate offered today is 4.89%. You’ll be in good shape if you can get an account offering a rate close to 4.89%. Last week at this time, the best rate was a similar 4.89%.
The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. That’s above last week’s 0.24%.
Money Market Account Savings Rates Today
Money market accounts (MMAs) are savings accounts that mix in some of the features of checking accounts. Often, you can write checks and take advantage of debit card privileges.
MMAs tend to pay marginally higher interest than standard savings accounts. The FDIC says the average MMA rate is 0.65% compared to 0.45% for a traditional savings account.
But today, the best money market accounts have rates as high as 5.08%. That’s steady with the top rate of 5.08% from one week ago.
The average APY for an MMA is now 0.54%, up from 0.54% last week at this time, according to Curinos.
Related: Savings Rates Forecast September 20, 2023
How Often Do Savings Account Interest Rates Change?
Interest rates on savings accounts typically fluctuate in response as other rates change throughout the economy. Savings rates are primarily influenced by the Federal Reserve’s rate moves, and the central bank has recently been raising its benchmark federal funds rate in an attempt to get inflation under control.
But while financial institutions are usually quick to raise credit card rates and other borrowing costs as the Fed raises rates, they tend to stall when it comes to increasing interest rates on savings. Rates on savings accounts have been rising little by little, and that’s likely to continue throughout 2023.
How High Can Savings Rates Go?
That’s tough to say—it depends on the path of inflation and the overall economy.
The highest interest rates in recent history were seen in the early 1980s when the Fed hiked the federal funds rate to over 19%. That was in response to record-breaking inflation that had prices rising at a rate of over 14% annually.
In the early 1980s, the average five-year CD paid almost 12%, compared to less than 2% today, according to Bankrate data. Savings rates eventually fell as inflation cooled and the federal funds rate was brought back down.
Methodology
Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation.
