Savings interest rates today, January 25, 2025 (best account provides 4.75% APY)

The Federal Reserve cut its target rate three times by the end of 2024, meaning savings interest rates are falling. Therefore, it’s important to make sure you’re getting the best rate possible when purchasing a savings account. The following is a breakdown of savings interest rates today and where to find the best deals.

The national average savings account rate is 0.41%, according to the FDIC. This may not seem like a lot, but consider that three years ago, it was just 0.06%.

Although the national average savings interest rate is quite low compared to other types of accounts (such as CDS) and investments, the best savings rates on the market today are much higher. In fact, some top accounts currently offer 4% APY and more.

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

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 rate (APY). This is a measure of your total earnings after one year when you consider the base interest rate and how often the interest compounds (savings account interest typically compounds daily).

Let’s say you put $1,000 in a savings account at the average interest rate of 0.41% with daily compounding. At the end of a year, your balance would grow to $1,004.11, your initial deposit of $1,000, plus just $4.11 in interest.

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

The more you deposit into a savings account, the more you can earn. If we take our same example of a high-yield savings account with a 4% APY, but we 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?