Today’s top savings account rate roundup: Earn up to 5.84% — July 1, 2024
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BLUEPRINT
Published 2:20 a.m. UTC July 1, 2024
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Average savings account rates haven’t budged over the past week, as banks try to figure out if the Federal Reserve’s pause in interest rate hikes is permanent.
More broadly, this propitious development for savers presents a prime opportunity to fortify your emergency fund or work towards a big ticket purchase. Whatever your motivation, aim for a savings account with a high interest rate, low fees and outstanding customer service, in addition to a user-friendly digital experience.
| SAVINGS RATES TODAY | ||
|---|---|---|
Average APY
| High rate
| |
$2,500 minimum deposit
| 0.24%
| 5.84%
|
$10,000 minimum deposit
| 0.24%
| 5.35%
|
Savings accounts provided minuscule yields following the Great Recession thanks to the Fed keeping borrowing costs low in order to cajole economic growth.
This low-rate environment was abandoned, however, following the government’s extensive spending during the pandemic, which caused the Fed to significantly boost interest rates to offset soaring inflation. That then prompted banks and credit unions to raise rates for savers.
Savings account rates — $2,500 minimum deposit
The highest interest rate on a standard savings account today is 5.84%, per Curinos, the same as a week ago. Meanwhile, the average APY (annual percentage yield) for a traditional savings account, as reported by Curinos, is 0.24%, up slightly from last week.
APY represents the return your account will generate in a year, taking into account compound interest—the interest earned on both the principal and previously accumulated interest in your account.
For instance, if you were to invest $2,500 at a 5.84% rate (the current high) for one year, you would earn roughly $150 in interest, assuming daily compounding and no additional contributions.
Savings account rates — $10,000 minimum deposit
The average APY for savings accounts requiring a minimum deposit of $10,000 is 0.24%, a tick higher than last week. However, numerous financial institutions offer considerably higher rates.
Some of the top high-yield savings accounts, for instance, currently feature rates of 4.00% or higher.
Per Curinos, the highest interest rate today on a savings account requiring a minimum deposit of $10,000 is 5.35%. If you were to invest $10,000 at a 5.35% rate (the current high) for one year, you would earn more than $550 in interest, assuming daily compounding and no additional contributions.
Methodology
To establish average savings account rates, Curinos focused on savings accounts intended for personal use. Savings accounts that fall into specific categories are excluded, including promotional offers, relationship-based accounts, private, youth, senior and student/minor. The average savings rates quoted above are based on a $2,500 or $10,000 minimum deposit amount.
Frequently asked questions (FAQs)
A high-yield savings account is essentially a standard savings account that offers a higher interest rate on deposits. (It’s more of a description than a technical definition.) This rate can fluctuate based on the broader financial market and the specific bank or credit union’s business requirements.
Like most savings accounts, you can’t access your funds by writing checks and your withdrawals are typically limited.
A high-yield savings account is ideal for those who require a readily accessible option for funds that won’t be touched more than once a week. It’s a recommended choice for most people.
However, if you already have a well-balanced investment portfolio with high earning potential and a convenient savings account with a trusted bank, you might not need or want a high-yield savings account. In this situation, managing an additional account could be an unnecessary hassle.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
