If you’re looking to supercharge your savings, a high-yield savings account could provide a competitive return to help your balance grow faster. However, not all banks offer high rates, which is why it’s important to shop around and find the most competitive savings interest rates available. Read on to learn more about where to find the best savings interest rates.
What are the best savings rates today?
Savings account rates have been on an upward trend over the past two years or so. However, interest rates vary widely, and the rates offered on traditional savings accounts are still fairly low compared to other types of deposit accounts and market investments. According to the FDIC, the average savings account rate is just 0.45%.
The good news is that many high-yield savings accounts offer rates of 5% APY and up. The best rates are typically offered by online banks, although you may be able to find comparable savings interest rates at some credit unions and community banks.
Here is a look at some of the best savings rates available today from our verified partners:
Related: 10 best high-yield savings accounts>>
Savings account interest rate predictions for 2024
Following several years of near-zero interest rates, the Federal Reserve began raising the federal funds rate in order to combat rapidly rising inflation. As a result, savings interest rates have skyrocketed as well, reaching a 15-year high.
However, the Fed has kept its target rate steady in 2024, and savings account rates are starting to level off. As inflation cools, it’s also expected that the Fed will begin decreasing rates later this year, most likely in November.
Although the federal funds rate doesn’t directly impact deposit rates, they are correlated. Which means that when Fed does lower its rate, savings interest rates are expected to follow suit. How sharply rates will fall depends on the severity of the Fed’s rate cuts.
It’s difficult to predict exactly how and when interest rates will change going forward, but one thing is for sure: Today’s high savings account rates won’t last forever. So, if you’re hoping to give your savings a boost and take advantage of the best rates on the market, there’s no better time than now.
How to open a savings account
The requirements involved in opening a savings account vary by financial institution. However, if you’re ready to open an account, you can follow these general steps:
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Research savings account rates: Of course, when choosing a savings account, one of the most important factors to evaluate are the interest rates. Be sure that you select a savings account with a competitive rate to help your money grow.
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Figure out your must-haves: Although savings account interest rates should be top of mind, that’s not the only factor to consider. You’ll also want to think about what else you need from your account, whether it’s no minimum balance requirement, low fees, or other perks. Finding a savings account with a solid rate that also helps you achieve your goals is key.
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Prepare documentation: Opening a bank account requires you to provide a few important personal details and documents. Before you start your application, be sure you have your Social Security number, driver’s license or passport number, and proof of address.
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Fill out the application: In many cases, you can apply for savings account online. However, some financial institutions may require you to visit the branch in person to apply. Either way, the application for a new savings account should only take a few minutes to complete. In many cases, you’ll get your approval decision instantly.
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Fund your account: Once your savings account application is approved, you’ll need to add funds to the account. Be sure you’re aware of any minimum opening deposit requirements and timeline for funding.
Read more: Step-by-step instructions for opening a high-yield savings account