What is the interest rate for a savings account?
The best savings account interest rates are around 5%. At a brick-and-mortar bank, you'll often find savings rates closer to the national average, which is currently 0.47%.
Which Bank Gives 7% Interest Rate? Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000.
A 5% interest savings account earns significantly more interest than a traditional savings account, which might earn as little as 0.01% APY. Security. Savings accounts protect your savings—and interest earnings—with FDIC or NCUA insurance.
Up to 5.1% easy access or up to 5.23% fixed rates
And while it's likely rates have already peaked, with top savings now paying more than inflation, there's a chance to really make your money work for you. We've the top easy-access, notice and fixed-rate accounts below.
| Savings Account | APY |
|---|---|
| CIT Bank Platinum Savings | 5.05% APY on balances of $5,000 or more; 0.25% APY on balances under $5,000 |
| Salem Five Direct eOne Savings | 5.01% APY |
| Laurel Road High Yield Savings® | 5.00% APY |
| Wealthfront Cash Account | 5.00% APY |
- CFG Bank – 5.25% APY.
- North American Savings Bank – 5.24% APY*
- Upgrade – 5.21% APY.
- EverBank (formerly TIAA Bank) – 5.15% APY.
- RBMAX – 5.15% APY.
- Bread Savings – 5.15% APY.
- Popular Direct – 5.15% APY.
- Western State Bank – 5.15% APY.
| Bank | Interest Rate of Savings Bank Account |
|---|---|
| Axis Bank | 3.00% - 3.50% |
| Bank of Baroda | 2.75% - 3.35% |
| IDFC First Bank | 3.50% - 4.00% |
| Bank of India | 2.75% - 2.90% |
CDs can help accelerate your savings, but they're not always worth it. If there's a chance you'll need access to your money during your CD's term, consider a high-yield savings account or money market account. But if you have a pool of money you can afford to lock up, it may be worth capitalizing on high CD rates.
Example of APY
If you deposited $100 for one year at 5% interest and your deposit was compounded quarterly, at the end of the year you would have $105.09. If you had been paid simple interest, you would have had $105. It pays 5% a year interest compounded quarterly, and that adds up to 5.095%.
You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500.
How much interest will I get on $10000 a year in a savings account?
The interest that $10,000 would earn over a year depends on the annual percentage yield and frequency of compounding. For example, a 4% APY that's compounded daily would result in $408.08 in annual interest earnings.
A savings account is a safe place to put your money when you can't afford to lose any or think you'll need it in an emergency. It's also a good place to put some of your investments as a hedge against losses – you can't lose everything if some of your money is in an ordinary savings account, after all.
Cash ISAs (Individual Savings Accounts)
Cash ISAs are tax-efficient savings accounts where the interest earned is entirely tax-free, making them an attractive option for over 60s. Available in various forms, including instant-access ISAs, fixed-rate ISAs, and Help to Buy ISAs, each with different terms and benefits.
Is Raisin safe? Raisin's partners are all protected by FDIC or NCUA deposit insurance to keep customer funds safe. The company also takes numerous steps to safeguard customer data and maintain privacy, such as encrypting data and using multi-factor authentication.
- Stocks.
- Real Estate.
- Private Credit.
- Junk Bonds.
- Index Funds.
- Buying a Business.
- High-End Art or Other Collectables.
Yes, the monthly interest credit facility is applicable to all types of savings accounts.
The IRS treats interest earned on a savings account as earned income, meaning it can be taxed. So, if you received $125 in interest on a high-yield savings account in 2023, you're required to pay taxes on that interest when you file your federal tax return for the 2023 tax year.
- High-yield savings account.
- Certificate of deposit (CD)
- Money market account.
- Checking account.
- Treasury bills.
- Short-term bonds.
- Riskier options: Stocks, real estate and gold.
Opening a savings account does not impact your credit score because you aren't borrowing money and the activity in your savings account isn't reported to a credit agency. Most financial institutions will run a soft credit inquiry when you open a savings account but it is only to check your identity.
Traditional savings accounts typically have relatively low interest rates, which means your money won't have a very high rate of return. But, many banks, such as Valley Direct and Western Alliance Bank, offer high-yield savings accounts with a rate of return much higher than a typical savings account.
Where is the best place to keep a savings account?
- High-yield savings accounts. Most traditional savings accounts offer a measly 0.01% to 0.02% APY, or annual percentage yield. ...
- Money market accounts. ...
- Certificates of deposit. ...
- Rewards checking accounts. ...
- Series I savings bonds. ...
- Treasury bills.
If you're looking for better rates and lower fees, Wells Fargo will likely be your best bet. Wells Fargo also has a wider variety of bank accounts to choose from. However, whether you choose Chase or Wells Fargo, you can rest easy knowing you'll always have quick and easy access to your accounts.
| Top Nationwide Rate (APY) | Balance at Maturity | |
|---|---|---|
| 1 year | 6.18% | $ 10,618 |
| 18 months | 5.80% | $ 10,887 |
| 2 year | 5.60% | $ 11,151 |
| 3 year | 5.50% | $ 11,742 |
Are CDs safe if the market crashes? Putting your money in a CD doesn't involve putting your money in the stock market. Instead, it's in a financial institution, like a bank or credit union. So, in the event of a market crash, your CD account will not be impacted or lose value.
Why it's probably time to buy a CD. Rates will remain high for a bit longer, but it's unclear how long. The Fed has indicated that there will three rate cuts in 2024, which means it's unlikely that CD rates will continue to climb . Waiting to open a CD could mean missing out on some stellar rates.
