Whether you're building an emergency fund or saving for your dream vacation, putting that money in a savings account ensures it's protected.Another benefit is that opening a high-yield savings account can help you grow your balance even faster.
These accounts pay higher interest rates than typical savings accounts – up to 5% APR or more. If you're not sure where to find the best savings rates right now, read on to find out which banks have the best offers.
Today's best savings rates
High-yield savings accounts generally offer higher interest rates than traditional savings accounts, but interest rates vary widely between financial institutions, so it's important to shop around before opening an account.
As of July 15, 2024, the top savings rates are hovering around 4.5% to 5% annual interest, with some banks offering even higher rates. The majority of the highest savings rates come from online banks. These financial institutions have much lower overhead costs than traditional banks, and are able to pass those savings on to their customers in the form of higher interest rates and lower fees.
Below are some of the best discount rates currently available, offered by our certified partners.
Related: 10 of the best high-yield savings accounts today>>
National average savings account interest rate
If you want to keep your money safe and liquid while earning competitive interest rates, a high-yield savings account is your best bet. Recent interest rate hikes by the Federal Reserve have pushed interest rates on traditional savings accounts and certificates of deposit (CDs) to their highest levels in more than a decade. Still, the national average for these rates is still quite low compared to the best offers available.
For example, the average interest rate on a savings account is just 0.45%, while one-year CDs yield an average of 1.81%, according to the FDIC. The Fed is expected to cut its target rate later this year, meaning this may be savers' last chance to take advantage of today's high interest rates.
Choose the best savings account for you
Taking the time to compare accounts and interest rates from different financial institutions can help you secure the best deal possible, but interest rate isn't the only factor to consider when choosing a savings account.
For example, some banks may require you to maintain a minimum balance to earn the highest interest rates and avoid monthly fees. Other factors to evaluate include customer service options and hours, access to ATMs and branches, digital banking tools, and the overall financial stability of the institution. Additionally, before opening a savings account, make sure the account is insured by the Federal Deposit Insurance Corporation (FDIC) or, if held by a credit union, by the National Credit Union Administration (NCUA) so your funds are protected even if the institution fails.
Read more: How to open a savings account: A step-by-step guide