Savings interest rates today, January 3, 2025 (up to 4.30% APY return)

The Federal Reserve cut the federal funds rate three times in late 2024. As a result, deposit interest rates are falling from their historic highs.

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Still, it’s possible to find high-yield savings accounts paying above 4% APY. So, if you’re looking for the best rates available today, here’s a breakdown of where to find them.

Although savings interest rates are elevated by historical standards, the national average rate for savings accounts is still just 0.42%, according to the FDIC. The good news: Top high-yield savings accounts offer more than 10 times the national average.

As of January 3, 2025, the highest savings account rate offered by our partners is 4.75% APY. This rate is offered by Openbank and there is a $500 minimum opening deposit required.

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

Remember, it’s important to shop around before opening a savings account. Interest rates vary widely, but there are several banks (in particular, online banks) and credit unions with highly competitive offers.

Related: 10 best high-yield savings accounts>>

Online banks operate exclusively via the web. This significantly reduces their overhead costs, so they’re able to pass those savings onto customers in the form of high deposit rates and low fees. In fact, many of the best high-yield savings accounts also come with zero monthly fees or minimum opening deposit requirements. If you’re searching for the best savings interest rates, online banks are a great place to start.

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That said, online banks aren’t the only place you can find savings accounts with rates that range between 4% and 5% APY. Credit unions are not-for-profit financial cooperatives and are also known for providing competitive rates and fewer fees. Many credit unions have certain requirements that must be met in order to become a member, though there are some that allow just about anyone to join.

Read more: Here’s why online banks offer the highest savings interest rates

Savings accounts are one of the safest places you can put your money. They’re insured by the FDIC (or the NCUA in the case of credit unions), which means your deposits are protected up to $250,000 if your financial institution fails. They also can’t lose money due to market fluctuations.

However, a savings account isn’t always the right choice. Although today’s savings interest rates are high by historical standards, they still don’t offer the same returns you could achieve by investing your money in the market. For long-term savings goals such as retirement, you need to invest a bulk of your savings in higher risk (but higher reward) market investments such as stocks, index funds, and mutual funds to reach your target.

But if you’re saving for a shorter-term goal such as a down payment on a home, vacation, or even an emergency fund, a high-yield savings account is one of the best options. That’s especially true if you want to access your money as needed; other types of high-yield deposit accounts, including money market accounts and certificates of deposit (CDs) place more restrictions on how often you can make withdrawals.