What is the current interest rate for a savings account

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Rates on various types of savings accounts are rising as the Federal Reserve raises interest rates. Shopping for an account where you can park some cash? 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 puny interest in recent years. That’s gradually changing, thanks to the Fed.

Today’s highest interest rate on a standard savings account is 3.83%, according to data from Bankrate.com. If you spot a basic savings account with a rate in that general area, you’ve found a good deal. One week ago, the best rate was 3.75%.

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 0.72%, Bankrate says, and that’s the same as a week ago.

APY, or annual percentage rate, depicts 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 often pay much higher interest than a conventional savings account. But the thing to know is you’ll have to meet tough requirements set 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, the best interest rate within the past week has been 2.96%.

The average APY for those accounts is now 0.20% APY, up from 0.18% a week ago.

The current average is 0.41% APY for a high-yield account with a $25,000 minimum deposit. That’s above last week’s 0.40%.

Savings Rates Today: Money Market Account (MMA)

Money market accounts are savings accounts that mix in some of the features of checking accounts. Typically, you can write checks and have some debit card privileges.

MMAs tend to pay at least slightly 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 3.15%. That’s steady with the top rate of 3.15% from one week ago.

The average APY for an MMA is now 0.27%, up from 0.25% last week at this time, according to Bankrate.

How Often Do Savings Account Interest Rates Change?

Interest rates on savings accounts typically are variable, meaning they can go up or down as other rates change throughout the economy. Savings rates are often influenced by the Federal Reserve’s rate moves, and the central bank in recent months has been pushing up its benchmark federal funds rate to try to get inflation under control.

But while financial institutions are usually quick to boost credit card rates and other borrowing costs as the Fed raises rates, they tend to take their time with increasing the interest paid to savers. Rates on savings accounts have been rising slowly, and that’s likely to continue throughout 2022 and in 2023 as the Fed remains active.

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.

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• Data company S&P Global reports the average savings account earns 0.09% APY and CDs earn 0.11% to 0.95% APY.
• Online banks tend to offer higher interest rates than the average savings account. 
• Keep in mind interest rates vary by bank and may fluctuate over time.

Data company S&P Global keeps track of interest rates offered by banks for products ranging from savings accounts and CDs to personal loans.

Here are the average interest rates of several different products offered by banks.

Average bank interest rates for savings accounts

According to data from S&P Global, the average savings account interest rate is 0.09%. But, that doesn't mean it's not possible to earn more on your money. 

The average online savings account earns a much higher interest rate than the typical account from a brick-and-mortar bank. High-yield savings accounts, which work the same as a typical savings account but earn more interest, are a great way to make your money work harder. 

Compare current savings rates

Here are a few popular online banks that offer high-yield savings accounts and their interest rates: 

Average bank interest rates for CDs

CDs are a popular way to keep money growing without the risk of the stock market. These accounts lock money away for a certain amount of time, generally ranging from one month to five years depending on your bank. While taking money out before the term ends comes with a penalty, these accounts have the benefit of higher interest rates than typical savings accounts or money market accounts, on average. 

It's worth noting that CD interest rates can change based on how much money you're depositing. Here's the average interest rate for a $10,000 CD, according to data from S&P Global:

Average bank interest rates for interest checking accounts

Not all checking accounts earn interest, but there are a few accounts out there that offer this perk. 

On average, checking accounts that earn interest earn 0.06% APY (Annual Percentage Yield). Keep in mind that this is an average, however, so specific accounts could earn more or less.

Here are the interest rates offered by several checking accounts: 

Average bank interest rates for money market accounts

Money market accounts tend to earn a little bit more interest than savings accounts. Money market accounts are not much different from savings accounts, and either is a good place to keep money when it needs to stay liquid and growing. 

Here are the average money market account interest rates, according to S&P Global data: 

Average bank interest rates for loans

Interest rates vary widely depending on what you need to finance. Currently, mortgages tend to have the lowest interest rates of any loan type. Personal loans have the highest interest rate of any loan product, mainly because they're unsecured loans. 

Here are the average interest rates for several types of loan products, including auto loans, home equity lines of credit and loans, personal loans, and mortgages, according to S&P Global data. 

How to find the best bank interest rates

The average bank interest rate varies by the type of account you're considering. Depending on what account you're looking to open, there might be other factors that play into the interest rate you'll see, like the account's balance or opening deposit. 

It's also worth noting that interest rates vary by bank. You might find that online banks have higher interest rates on savings accounts than the bank with a branch down the street. Comparing accounts is important to get the best interest rate, but making sure that the account you're considering doesn't have any fees that could eat into your earnings is equally important. 

Interest rates for both deposit accounts, like checking and savings, and loans are constantly in flux. They can change at any moment, and the account with the highest interest rate today may not be the one with the highest interest rate next month.

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