Best savings interest rates today, 25 December 2024 (highest at 4.66% p.a.)

The Federal Reserve has cut the federal funds rate three times this year, which means deposit rates are now falling. It’s more important than ever to make sure you get the highest possible rate on your savings, and High-yield savings account It could be the solution.

These accounts pay more interest than a typical savings account — up to 4% APY and up. Not sure where to find the best savings interest rates today? Read on to find out which banks have the best offers.

Historically, interest rates on savings accounts have been high. However, the prices are on Traditional savings accounts They pale in comparison to those offered for high-yield savings accounts.

For example, the average interest rate on a savings account is just 0.42%, while the best savings interest rates generally range between 4.0% and 4.5% per year.

As of December 25, 2024, the highest savings account rate offered by our partners is 4.66% per annum. This rate is offered by VIO Bank and there is no minimum opening deposit required.

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

Related to: Top 10 High Yield Savings Accounts for 2024 >>

Deposit account rates – including savings rates – are linked to Federal funds rate. This is the target interest rate set by the Federal Reserve. When the target interest rate increases, deposit account rates usually increase. Conversely, when the Fed lowers interest rates, deposit rates fall.

After multiple High interest rates On the Fed’s part, in response to high inflation, it finally cut the federal funds rate three times in late 2024. As a result, deposit rates began to fall as well.

The Fed is expected to cut its interest rate target two more times in 2025, so we can expect interest rates on savings accounts to continue to decline. However, high-yield savings accounts remain one of the best places to safely store cash and get the best deposit rates available.

Read more: Eurobonds vs. High Yield Savings Accounts: Which is Better for Beating Inflation?

Choosing where to put your money is an important decision, and there are some factors you should consider when evaluating your options. A high-yield savings account may make sense if you’re looking for a safe place to hold short-term savings while earning a solid return. Here are some key considerations:

• Interest rates: One of the most important features of a savings account is the interest rate. It’s important to shop around and compare the best offers to ensure your money grows over time. Given that savings rates will likely decline in the near future, Open a high-yield savings account Now it will allow you to take advantage of historically high rates.

• Objectives: Today’s high-yield savings accounts offer rates not seen in more than a decade. However, savings rates still do not match average stock market returns. If you’re saving for a long-term goal like retirement, a savings account probably isn’t the best place to put your money, since your balance won’t grow at a pace that will allow you to reach your goal. However, if you’re saving for a financial emergency, a down payment on a house or car, gifts for the holiday season, or any other short-term goal, a savings account is a great place to keep that money.

• accessibility: Certain types of accounts and investments may provide higher returns than savings accounts, but they may make it difficult to access your money in a pinch. For example, if you put your savings in… Deposit certificate (CD) and need to access the funds before the due date, you may be subject to an early withdrawal penalty. So, if you want to be able to tap into your savings as needed, a high-yield savings account is likely the best option.

• protection: In most cases, savings accounts are Insured by the Federal Deposit Insurance Corporation (FDIC). Up to the federal limit. They too You can’t lose money Due to market volatility, making it a low-risk option.

Read more: Can you negotiate a higher interest rate for a savings account with your bank?