Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
Rates on a variety of savings accounts are mixed compared to a week ago as the Federal Reserve boosts interest rates. Shopping for an account where you can save for a rainy day or retirement? Here’s a look at the best savings rates you’ll find today.
Related: Compare the Best High-Yield Savings Accounts
Savings Rates Today: Traditional Savings Account
Traditional savings accounts, called “statement savings accounts” within the banking industry, have been notorious for paying teensy interest in recent years. That’s now changing, thanks to the Fed’s campaign of interest rate hikes to combat inflation.
Today’s highest interest rate on a standard savings account is 3.12%, according to data from Bankrate.com. If you land a basic savings account with a rate in that general area, you’ve found a good deal. One week ago, the best rate was 3.11%.
The national average rate is just 0.21%, according to the most recent data from the FDIC, the government agency that insures bank deposits. But today’s average APY for a traditional savings account is 0.66%, Bankrate says, and that’s up from 0.61% a week ago.
APY, or annual percentage rate, shows the actual return your account will earn during one year. It factors in compound interest, which is the interest that builds up on the interest in your account.
Savings Rates Today: High-Yield Savings Account
High-yield savings accounts typically pay much higher interest than a conventional savings account. But the catch is you’ll 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 2.96%. That’s unchanged from one week ago.
The average APY for those accounts is now 0.17% APY, the same as a week ago.
The current average is 0.39% APY for a high-yield account with a $25,000 minimum deposit. That’s the same as last week’s APY.
Savings Rates Today: Money Market Account (MMA)
Money market accounts are savings accounts that have some of the properties of checking accounts. Typically, you can write checks and enjoy debit card privileges.
MMAs tend to pay marginally higher interest than a standard savings account. The FDIC says the average MMA rate is 0.23%, versus 0.21% for a traditional savings account.
But today, the best money market accounts have rates as high as 2.66%. That’s above the top rate of 2.47% from one week ago.
The average APY for an MMA is now 0.24%, down from 0.25% last week at this time, according to Bankrate.
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 memory were seen in 1980 and ‘81, when the Fed sent its federal funds rate soaring above 19%. That was in the face of runaway inflation that had prices rising at an annual rate of more than 14%.
In the early 1980s, the typical five-year CD was paying close to 12%, compared to less than 2% today, according to Bankrate data. Savings rates would eventually fall as inflation cooled off and the federal funds rate was brought back down.
