But rates vary widely from bank to bank, from almost zero to rates that are quite high, so definitely shop around. Pays interest on your balance: Unlike your checking account, the balance you hold in a savings account earns interest, in the form of an annual percentage yield (APY).When rates are falling, your APY could drop Scoring a high yield may require opening the account at another bankĮarnings will be lower than on riskier investmentsĮasy access to your money could make it tempting to spend it EverBank (formerly TIAA Bank) – 5.15% APY.North American Savings Bank – 5.35% APY*.Savings rates closely follow the fed funds rate, so if the Fed implements a further increase, that could nudge savings rates higher still. 1-after 11 hikes in the previous 12 meetings-it has indicated that an additional increase is still on the table. Though the Fed held its benchmark rate steady for a second consecutive meeting on Nov. Today’s savings accounts are paying higher rates than we’ve seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation.
