Savings interest rates today, January 12, 2025 (best accounts offering 4.75% APY)

The Federal Reserve has cut its target rate three times by the end of 2024, which means savings interest rates will fall from their historic highs. It’s important to make sure you’re getting the best possible rate when shopping for a savings account. The following is a breakdown of today’s savings interest rates and where to find the best deals.

The average national savings account rate is 0.42%, according to the FDIC. This may not seem like much, but consider that three years ago, it was only 0.06%, reflecting a strong growth in a short time.

Today, the highest savings account rate available from our partners is 4.75% APY. This rate is offered by Openbank and there is a minimum opening deposit of $500.

Since these taxes can not be longer, consider open a high-yield savings account now to take advantage of today’s high rates.

Here’s a look at some of the best savings rates available today from our verified partners:

Related: 10 Best High Yield Savings Accounts Today >>

The amount of interest you can earn from a savings account depends on the annual percentage (APY). This is a measure of your total earnings after a year when you consider the base interest rate and how often interest is compounded (savings account interest is usually compounded daily).

Say you put $1,000 into a savings account at an average interest rate of 0.42% with daily compounding. At the end of one year, your balance will grow to $1,004.21 – your initial deposit of $1,000, plus just $4.21 in interest.

Now let’s say you choose a high-yield savings account that offers 4% APY instead. In this case, your balance will increase to $1,040.81 in the same period, which includes $40.81 in interest.

The more you deposit into a savings account, the more you will earn. If we took our same example of a high-yield savings account at 4% APY, but deposited $10,000, your total balance after one year would be $10,408.08, meaning you would earn $408.08 in interest. ​

Read more: What is a good savings account rate?