High-Yield Savings Accounts: Unlocking the Best Rates
In a move to stimulate the economy, the Federal Reserve slashed its benchmark rate by 50 basis points in September, followed by additional cuts in November and December. As a result, deposit interest rates have begun to fall from their historic highs. However, savvy savers can still find high-yield savings accounts offering above 4% APY.
Elevated Savings Interest Rates
Despite the national average rate for savings accounts hovering at a mere 0.43%, top high-yield savings accounts boast rates upwards of 5% APY – more than 11 times the national average. As of December 20, 2024, the highest savings account rate offered by our partners stands at 4.75% APY, available from Openbank and Poppy Bank.
Competitive Offers from Online Banks and Credit Unions
Online banks, operating exclusively online, reduce overhead costs and pass the savings onto customers in the form of high deposit rates and low fees. Many of the best high-yield savings accounts come with zero monthly fees or minimum opening deposit requirements. Credit unions, not-for-profit financial cooperatives, also provide competitive rates and fewer fees, often with certain membership requirements.
Safest Place for Your Money
Savings accounts are one of the safest places to put your money, insured by the FDIC (or NCUA for credit unions), protecting deposits up to $250,000 in case of financial institution failure. They’re also immune to market fluctuations. However, for long-term savings goals, investing in higher-risk market investments may be necessary to achieve desired returns.
Short-Term Savings Goals
For shorter-term goals, such as a down payment on a home, vacation, or emergency fund, high-yield savings accounts are an excellent option. They offer easy access to your money as needed, unlike other high-yield deposit accounts like money market accounts and CDs, which come with withdrawal restrictions.
Top Offers and Resources
If you’re searching for today’s best savings interest rates, we’ve narrowed down some top offers. Learn more about savings interest rates, money market account rates, and CD rates today.
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