The Federal Reserve cut its target interest rate in September. That means rates on high-yield savings accounts, which have recently been above 5% APY, are also starting to drop.

To get the highest possible interest rate on your savings, it’s important to do your research and find competitive offers. Don’t know where to start? Here’s a closer look at current savings interest rates and where you can find the best.

The average interest rate of a traditional savings account it’s just 0.42%, according to the FDIC. However, the best savings rates can be found in high-yield accounts, which often pay 4.5% to 5% APY or even more.

These higher rates are generally offered online banksalthough you can also find competitive rates at some credit unions and community banks.

Today, the highest savings rate available to our members is 4.75% APY. This fee is offered by Openbank and requires a minimum opening deposit of $500.

Here are some of the best savings rates available today from our verified partners:

Related: The 10 Best High Yield Savings Accounts Available Today >>

Over the past decade, interest rates on savings accounts have fluctuated quite a bit. From about 2010 to 2015, rates were very low, ranging from about 0.06% to 0.10%. This was largely due to the financial crisis of 2008 and Federal ReserveThe decision to reduce its target rate to almost zero to stimulate economic growth.

From 2015 to 2018, interest rates began to rise gradually. However, they remained low by historical standards. Then, the onset of the COVID-19 pandemic in 2020 led to another sharp drop in rates as the Fed cut rates again to stimulate the economy. This pushed average savings interest rates to new lows of around 0.05% to 0.06% in mid-2021.

Since then, savings account rates have rebounded considerably, largely driven by the Fed interest rate hikes in response to rising inflation. However, the Fed finally cut the federal funds rate in September, November, and December 2024, and as a result, deposit rates are also starting to fall.

Here’s how savings interest rates have changed over the past decade:

Although interest rates have risen substantially since 2021, the average savings account rate is still quite low, especially compared to market investments. If you’re saving for a long-term goal, such as a child’s education or retirement, a savings account probably won’t generate the returns you need to reach your goal.

On the other hand, if you’re saving for an emergency fund, down payment, vacation, or other short-term goal, a high-yield savings account is ideal, especially if you want to access the funds as needed. Other types of deposit accounts, incl money markets and CDsmay offer similar or even better rates, but restrict how often you can withdraw. The key is to shop around and find an account that offers a competitive rate with low or no fees.