High-yield savings account rates steady at 5.84%

Savings account rates have remained steady this week. You can now earn 5.84% or higher on your savings. This marks a significant increase compared to previous years, thanks to the current economic climate. Traditional savings accounts, commonly called "statement savings accounts," have struggled with low-interest rates in the past. However, online banks and credit unions are now offering much more competitive yields. The highest yield for standard savings accounts with a $2,500 minimum deposit is currently 5.84%. In contrast, the average annual percentage yield (APY) for traditional savings accounts is just 0.22%. APY measures how much money you'll earn over a year, including compound interest. High-yield savings accounts typically offer even better rates. For those requiring a $10,000 minimum deposit, the best rate is 4.88%. Rates for these accounts haven't changed much from last week. Accounts with a $25,000 minimum open at a rate of 4.4%. Interest rates on savings accounts can fluctuate based on broader economic conditions. The Federal Reserve's changes to interest rates often influence these rates. The Fed has recently begun to lower rates as inflation stabilizes. When looking for a savings account, it's essential to consider more than just the interest rate. Look for accounts with low fees, good customer service, and a reliable banking history. Overall, online banks and credit unions tend to provide the best yields due to their lower operating costs.