Savings account interest rates today, November 15, 2024; some banks still offerings APYs at 5% or more

Today’s top savings rates: Earn up to 5.25%

Here are the leading high-yield savings account interest rates currently on offer:

For context, the current national average savings rate is 0.45%.

The Federal Reserve’s impact on savings rates

Fed interest rate decisions are crucial in shaping savings account rates. When the Fed raises its benchmark rate, financial institutions typically follow suit by increasing the interest they offer on savings accounts to remain competitive. Conversely, when the Fed lowers rates, savings account yields generally decrease.

However, this relationship isn’t always direct. Banks may adjust their rates based on a variety of factors, including their own financial objectives, efforts to attract new customers, and broader market conditions.

Frequency of savings rate changes

Savings account rates can be modified at any time, often without advance notice. Changes frequently occur after Fed meetings, which take place roughly eight times annually. However, some banks may adjust rates more frequently depending on their competitive strategy or in response to unexpected market shifts.

Future outlook for savings rates

Savings account rates are likely to decline in the near term. On September 18, 2024, the Fed implemented a 50 basis point rate cut (from 5.25%–5.50% to 4.75%–5.25%), with further cuts anticipated later in the year. Consequently, many banks have already started lowering their savings account annual percentage yields (APYs).

Federal Deposit Insurance Corp. (FDIC) average national deposit rates: January 2020 to October 2024

High-yield vs. traditional savings accounts

The key difference between high-yield and traditional savings accounts lies in the interest rate offered. High-yield accounts typically provide rates that are 10 to 20 times higher than conventional accounts. For example, while the national average savings rate is 0.45%, many high-yield accounts offer rates above 4%.

Traditional accounts often feature physical branch access but with lower rates while high-yield accounts are typically offered by online banks, boasting higher rates but limited in-person services.

Benefits of high-yield savings accounts

Consider opening a high-yield savings account if you’re looking for these advantages:

• Substantially higher interest rates than traditional savings accounts
• Often free from minimum balance requirements or monthly fees
• Liquid funds that remain easily accessible
• Ideal for emergency funds or short-term savings goals
• FDIC-insured, providing the same protection as traditional banks

Evaluating savings account options

When comparing savings accounts, keep these factors in mind:

• Interest rates: Look for competitive APYs to maximize your earnings.
• Minimum balance requirements: Many high-yield accounts have no minimums.
• Fee structure: Avoid accounts with monthly maintenance fees.
• Fund accessibility: Ensure easy withdrawals or transfers when needed.
• Security: Verify FDIC insurance coverage.

Alternative savings vehicles

Beyond savings accounts, consider these options for growing your money:

The takeaway

Despite recent Fed rate cuts, high-yield savings accounts continue to offer competitive rates. While rates may decline in the coming months, these accounts still provide significantly higher returns than traditional savings accounts.

To maximize your savings, consider opening a high-yield account with a competitive rate and favorable terms. Compare rates across different institutions frequently to ensure you get the best possible return on your money.

Frequently asked questions