What is today’s savings interest rate?

savings An important part of any financial plan. Without them, any number of setbacks or unexpected expenses can throw you into a tailspin that takes years to recover from.

“Things are going to happen,” says William Thompson, CFP and financial planner at Valor Wealth Partners, LLC. “Whether it’s losing a job, needing to replace an appliance or breaking down a car, you need to have funds that can be used quickly to respond to these problems without using a high-interest credit card.”

A savings account provides one safe place To save your money for a rainy day, while also enabling you to earn more in the form of interest. How much depends on a variety of factors, including what type of account you open and where rates currently stand. Read on to find out what today’s savings account rates are — and how you can secure the best.

Check out the top savings accounts here to see how much more you can earn

What is today’s savings interest rate?

The national average savings account interest rate as of June 1, 2023 is 0.25% Bankrate. However, you can earn more exponentially than that by opening a high-yield savings account. Bankrate reports that today’s top high-yield savings account rates are between 3.85% and 4.85%. And if you shop around, you can find an account that rates even higher.

Check today’s rates here to find the account that will earn you the most!

How to get a good savings account rate

Regardless of the current rate environment, here’s how you can secure the best rate available.

Choose a high-yield savings account

When it comes to earning as much interest as possible, High Yield Savings Account They are clear winners. They typically offer rates 15 times higher than regular savings accounts, which can add up quickly.

For example, suppose you deposit $1,000 in a savings account at 0.25%. After 12 months, you’ll earn just $2.50 in interest. But put that money in a high-yield account at 4.85% and you’ll earn $48.49 over the same period. And because interest compounds, that difference can really balloon over time.

Check out today’s best savings account rates here to get started.

Check out Online Bank

Today’s top high yield savings accounts are offered by many Online Bank. These banks have lower overhead costs than brick-and-mortar banks because they have no physical locations. They offer and pass those savings on to you High interest rates and other benefits, viz Low or no fees.

“For anyone who feels like they don’t have enough to save, many of the top accounts typically start with a $1 minimum, which isn’t a high bar to meet. They often have no monthly fees either, so there shouldn’t be any serious hurdles. , even if one only wants to save less than $100 a month in an online savings account,” says Shane Cummings, CFP, CEPA, AIF, wealth advisor and director of technology/cybersecurity at Halbert Hargrove.

Plus, online accounts are quick to set up and easy to use.

“Account opening process for most [these] Banks are also very streamlined and can be done online in minutes, which is much better than walking into a bank branch and going through a much slower process in person,” says Cummings.

Shop around

High-yield savings accounts offered by online banks are your best bet for getting a great interest rate But there is a lot of variation in these options. So take the time to compare products, not just interest rates but also things like fees that can affect your earnings.

It will take longer than choosing the first account that comes your way, but once that initial research is done, you can sit back and watch your savings grow, knowing you’re getting the most for your money.

Find the right high-yield account for you by comparing your options online now!

Bottom line

No matter where you are in your financial journey, having a savings account is a must. And you owe it to yourself Maximize your savings Getting the highest rate you possibly can. By knowing today’s average rates, choosing a high-yield savings account with an online bank and researching your options, you can rest easier knowing you’re better prepared to weather any storm.