Savings interest rates today, December 22, 2024 (best accounts offering 4.75% APY)

Today’s savings account interest rates are some of the highest we’ve seen in over a decade due to various interest rate hikes by the Federal Reserve.

But the Fed finally cut its target interest rate three times in late 2024, meaning savings interest rates are falling. That’s why it’s important to make sure you’re getting the best rate possible when shopping for a savings account. Below is a breakdown 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 just 0.06%, reflecting a sharp increase in a short period of time.

The highest savings account rate available to our partners today is 4.75% APY. This rate is offered by two banks: Openbank (minimum opening deposit $500) and Poppy Bank (minimum opening deposit $1,000).

Since these rates may not last much longer, consider: Opening a high-yield savings account Take advantage of today’s high rates now.

Let’s take a look at some of the best savings rates our verified partners are offering today:

Relating to: Today’s top 10 high-yield savings accounts>>

The amount of interest you can earn on a savings account, annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base interest rate and how often the interest compounds (savings account interest typically compounds daily).

Let’s say you deposit $1,000 into a savings account with an average interest rate of 0.42% compounded daily. After one year, your balance will have grown to $1,004.21 – your initial $1,000 deposit plus just $4.21 in interest.

Now let’s say you choose a high-yield savings account that offers 4% APY instead. In this case, your balance increases to $1,040.81 over the same period, including $40.81 in interest.

The more money you deposit into the savings account, the more you earn. If we took the same example and deposited $10,000 into a high-yield savings account with 4% APY, after one year your total balance would be $10,408.08, meaning you would earn $408.08 in interest. ​

Read more: What is a good savings account rate?