Highest Savings Account Interest Rates (February 2024) | Freo (2024)

FAQs

How high will savings interest rates go in 2024? ›

According to the Summary of Economic Projections, the Fed may implement up to three 25-basis point interest rate cuts in 2024—bringing the federal funds rate closer to 4.60%. If this happens, it won't be surprising to see banks following suit and decreasing their savings account rates.

Currently, there are no savings accounts on the market that offer a 7% APY.

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

Here's a quick comparison: From mid-December 2023 to mid-February 2024, the midpoint for one-year CD rates at 21 online banks and credit unions dropped from 5.30% to 5.00% annual percentage yield, according to a NerdWallet analysis. While not drastic, more rate drops may be coming.

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

DCB Bank savings account interest rates

This private sector lender is offering an interest rate of 8% for savings account customers maintaining balances ranging from Rs 10 lakh to Rs 2 crore.

At a 7.00% fixed interest rate, your monthly payment on a 30-year $200,0000 mortgage might total $1,331 a month, while a 15-year might cost $1,798 a month.

Not only do many of the best high-yield savings accounts pay 5% interest, but some offer even more. Currently, you can find 5% interest savings accounts at M1, Bask Bank, UFB Direct, Salem Five Direct, BMO Alto, Bread Savings, CIT Bank and Varo Bank.

In its April Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 6.8% in the first quarter of 2024 to 6.4% by the fourth quarter. The industry group expects rates will fall below the 6% threshold in the fourth quarter of 2025.

In May 2024, the average 2 year fixed rate is 4.74%. While this is a significant drop from its July 2023 peak of 6.86%, it's still much higher than December 2021 when was 2.34%. Find out more in our guide to the Best mortgage rates.

What is the projected I bond rate for May 2024? ›

The current composite rate of 4.28% is only earned for the first 6 months of your I Bond. Your May 2024 I Bonds purchase will turn your $100 into $102.14 just 6 months later. This is a 4.28% annualized rate.

CD rates should remain fairly attractive in 2025

Just as the Fed raised interest rates when inflation soared, the central bank is expected to start cutting interest rates now that inflation has cooled.