In 2021, inflation jumped to 4.7%, while savings account interest rates hovered between 0.06% and 0.07%. If you have $2,500 in savings at a national bank offering 0.01% APY, you would only earn $0.25 in interest during the first year. This is down from 12.38 a decade earlier in 2007, and more than 6 percent lower than the peak rate of 18.65 percent in 1982. Based on a deposit of 10,000 this would give you 286 in interest payments over a . Something went wrong. The best savings accounts have two key features to help you grow your money over time: low fees and attractive interest rates. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. Federal Reserve Banks set the rate the higher the rate, the more expensive it is for banks to borrow from the fed. Ally Bank, for example, offers a savings account rate of 3.30% APY as of today. Interest is compounded daily and credited to the Savings Account monthly. Savers had access to double-digit yields as inflation soared. When the Federal Reserve lowers interest rates, savings rates tend to fall as well. What Is the Average Interest Rate on a Savings Account? With inflation, the cost of goods and services rises and your money doesnt buy as much. Savings Calculator: How Much Could You Save? Bank-Account Interest Isnt What It Was After an Initial Spurt Following Deregulation, Rates Have Quietly Retreated., Federal Reserve Bank of St. Louis. Home equity line of credit (HELOC) calculator. In fact, rates typically remain steady to allow the economy to continue doing well. You can earn up to 5.00% APY by meeting the following requirements: Unlike many other credit unions, Consumers Credit Union doesnt require you to live in a specific area or be a part of a certain organization to qualify for membershipand score the favorable interest rates that go along with that. Over the last year, interest rates have dropped from 2.1% to 0.9%, a 65% decrease. Prior to todays historically low levels, interest rates fell to 1.7% during World War II as the U.S. government injected billions into the economy to help finance the war. By the end of the Great Recession in late June and early July 2009, however, the average national rate was just 0.21%, according to Federal Deposit Insurance Corporation (FDIC) data. The target federal funds rate, which is set by the Federal Reserve Board, serves as the basis for the prime rate. Instead, you get to make tax-free withdrawals in retirement. One consequence of this was the government sold swaths of land to finance the federal budget, ultimately avoiding the accumulation of debt. Historically, when economic growth has been slow, banks have lowered rates to attract new borrowers. If you open a savings account that earns interest, you wont be able to avoid paying taxes on the money you earn. This buy now, pay later service has stepped into the savings account game. Some savings accounts offered 15% rates during an economic boom in the 1980s, Carey noted. The offers that appear on this site are from companies that compensate us. In June 1993, rates started to look normal again, with the average one-year CD yield sinking to 3.1 percent APY, Bankrate survey data shows. Bankrate follows a strict editorial policy, Alternatively, Nationwide pays 4% - we've included it as we know many prefer to save with the big high-street names. In 1982, private-sector DB plans made up almost 40% of U.S. retirement assets. By January 2000, the average savings rate was 3.5% - it would end up falling below 1.0% multiple times between 2000 and 2010. How much to keep in savings depends on your personal financial situation and goals. Based on savings accounts on Canstar's database, with rates based on deposit of $10,000. Varo, Consumers Credit Union, Affirm, Sallie Mae Bank and Chime have the best savings accounts in terms of high interest rates and low fees. It has steadily declined since 1985, and in 2009 was expressed for the first time in less than a whole percent: 0.16 percent. The most recent cycle, since 2011, has been the longest strengthening cycle in decades. Meanwhile, the dollar remains the global reserve currency. Read on to see why we chose these accounts, along with pros and cons of each. Yields earned on credit union accounts are referred to as dividends rather than interest. She has more than 30 years experience as a writer and editor for newspapers, magazines and online publications. Think of Sallie Maes SmartyPig account as the piggy bank of your youth, but given a virtual upgrade to help you reach your goalswhether you want to build an emergency fund or take that vacation to Italy youve been dreaming about. We are an independent, advertising-supported comparison service. In one Ipsos survey, just 56% of Americans surveyed said they felt good about their overall level of financial security. this post may contain references to products from our partners. The 2000s kicked off with a recession, and savings rates fell to between 1% and 2%. As a result, they dont have as much of a need for consumer cash reserves; thus, their incentive to offer high savings yields to attract new customers goes down. Read our, Savings Account Rates During Steady Economic Growth, Savings Account Rates During Economic Booms. The Federal Reserve controls the economy. CD rates in the 1980s reached record highs. It was a period of low economic growth and rising unemployment, with jobless figures as high as 8%. Since 1996 the Bank . Varo Banks savings account features two tools to help you save more money: Save Your Pay saves a percentage of your paycheck, and Save Your Change rounds up Varo debit card purchases and transfers the excess to savings. This compensation comes from two main sources. No monthly fees or requirements are needed to earn the advertised APY on all balances. Banks can raise interest rates on credit cards only if you're more than 60 days late on your payment or when a promotional event expires or if the prime rate goes up. This strategy also ensures banks meet reserve requirements put in place by the Federal Reserve to promote appropriate liquidity. To stimulate the economy and encourage people to spend more, the Federal Reserve often lowers interest rates. *Based on the national average interest rates for savings accounts according to the FDIC. 2023 Forbes Media LLC. All of our content is authored by What is the Prime Rate? Fund your account using a linked bank account or other methods. The Patriot Bank High-Yield Money Market Deposit account is a free savings account that earns 0.55% APY. National average savings rates hit 0.30% in late December. Source: www.canstar.com.au - 03/01/2023. Dove vs. Hawk: The Financial Conditions Index, 5 Key Questions Investors Have About Inflationary Environments, The Effects of Quantitative Tightening: Less Liquidity, More Volatility. Information provided on Forbes Advisor is for educational purposes only. Several decades ago, I would never have believed that savings rates could drop to below 1%. However, this isnt ideal for short-term savings as your contributions will be subject to stock market volatility. This page includes a chart with historical data for Deposit Interest Rate in Mexico. Russia in Turmoil As Oil Continues To Drop in Price, US Debt Up Over $10 Trillion Since Start of Iraq War. With $9.3 trillion in assets, defined contribution (DC) plans are the second-greatest source of savings. 2023 GOBankingRates. Capital One Savings Account Interest Rates. By 1968 the prime rate had climbed to 6.31 and in 1969 it jumped to 7.95 percent. 4.00%. What Is The Record For Highest Ever Average Gas Price (per Gallon) in the United States? Our goal is to give you the best advice to help you make smart personal finance decisions. Minimum Balance Required (INR) Savings Account Interest Rates (Per Annum) Allahabad Bank. Show More. and anything above this is quite competitive. In performing a straightforward interest calculation, $1,000 that earned 1% interest in one year would yield $1,010 (or .01 x 1,000) at the end of the year. Yes Bank Savings Account Interest Rate : Yes Bank offers one of the most attractive interest rates when it comes to Savings Accounts. When Is It Good for Me to Have High Interest Rates? You may want to compare: Some of these features may be more important to you than others. Interest Rates Deposit Rates Loan Schemes - Interest Rates SBI NRI Services - Interest Rates. Thank you for getting in touch with Finder. Interest on Interest. The first half of the 20th century was a similar picture, with rates fluctuating between 5 and 10 per cent. Plus, your money is federally insured, so it cant lose value. How Much Money Should I Keep In My Savings Account? To be on this list, the savings account must be nationally available. when you enable the Lock Saver Feature. Due to their lower overhead costs, online banks tend to surpass the national average more than traditional banks, so they often pass the savings onto their customers in the form of higher interest rates. Depending on your credit score, you could get a much lower personal loan rate, which could save you hundreds or even thousands of dollars depending on how much you borrow. Find out how much interest you could earn on a CD these days. Thats when CD yields peaked. Your financial situation is unique and the products and services we review may not be right for your circumstances. List of Savings Account Banks. Banks have been quick to boost interest rates they charge on loans, but theyve been increasing the rates on savings products more slowlyand begrudgingly. Visualized: What Factors Drive the U.S. Dollar? 4.28. percent. Optional, only if you want us to follow up with you. With the Federal Reserve aggressively raising interest rates to combat inflation, that will mean continued improvement in yields in the weeks and months ahead, says McBride. Alongside this, the liquidity and depth of U.S. financial markets are unmatched. Please try again later. 3.50%. Receive total direct deposits of $1,000 or more each qualifying period. Interest Rate Movements Since 1990. Bankrate.com does not include all companies or all available products. Not only did investors buy U.S. dollars given its role as the worlds reserve currency, but demand for U.S. dollars increased as rising interest rates drove higher returns for the safe-haven currency. This Markets in a Minute Chart is available as a poster. To earn 2.00%, you have to meet the following requirements: If you dont meet the minimum qualifications during a given month, the dividend rate drops to a lower APY. On average, three-month CDs in early May 1981 paid about 18.3 percent APY, according to data from the St. Louis Federal Reserve. All Right Reserved. This is especially true if the Federal Reserve adjusts its target rate, which can lead to changes in rates offered by financial institutions. The Annual Percentage Yield (APY) for the Chime Savings Account is variable and may change at any time. When the Federal Reserve raises rates to combat inflation, savings account rates tend to go up, too. Outside of work, she enjoys reading and hiking. If youre looking for a safe place to grow your money, a savings account is a convenient place to start. The average annual percentage yield (APY) on a one-year CD was over 11 percent. And 9/11 cost the country almost $3.3 trillion. INTERNATIONAL BANKING. Before the Great Recession in early 2007, banks such as HSBC Direct, ING Direct, Citibank, and Emigrant Direct were offering savings account yields between 4.5% and 5.05%. Savings Account (Amounts < $250k) Product Features Setup multiple accounts for multiple goals Smart saving tools to help you reach your goals Earn interest, no matter how often you withdraw. Compare that to an online account paying 3.00%, which would net you $75 in interest earnings during the first year. Here is a list of best banks for savings accounts with the highest interest rates. BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access. In todays age, you can quickly apply for most savings accounts online using these steps: During the application process, youll likely need to provide this information for yourself and any joint owners on the account: If youre hoping savings account interest rates will go up in 2023, youre probably in luck. In early 2000, after the dot-com boom began to lose steam, the economy started to slow and the Fed lowered interest rates to stimulate the economy. The all-time high for the prime rate was 21.50 percent in 1980. is made up of a Base rate of 0.05% p.a., Bonus rate of 4.25% p.a. Although high-yield checking accounts are becoming more popular, most checking account dont earn interest. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. The federal prime interest rate is typically viewed as a lagging indicator, and financial institutions adjust their interest rates in accordance with it as economic conditions change. These rates were most likely affected by the Savings and Loan Crisis of the 80s/early 90s, because in the following years the rates dropped to much more typical numbers: 4.XX%, 5.XX%, etc.. To open a Chime High Yield Savings account, you must open a Chime Checking Account first. You can click on the 'unsubscribe' link in the email at anytime. When rates are low, banks are often able to borrow money cheaply. Average CD rates: 1984-1989 CD rates in the 1980s reached record highs. In July 2020, Varo became the first challenger bank to receive a national bank charter, enabling it to offer a broader range of products and services in the future. Savings account interest rates fluctuate over time, usually tracking up and down with the federal funds rate, which is the rate set by the Federal Reserve to influence how much it costs for banks to borrow and lend one another money overnight. Capital One Venture X Vs. Chase Sapphire Reserve, How To Find The Cheapest Travel Insurance, savings rates will continue to rise in 2023, Best Savings Accounts For Automated Saving, Best Savings Accounts For Digital Banking, Best Savings Accounts For Customer Experience, Fintech Trends Likely To Stick Around After The Pandemic, How To Protect Your Online Banking Information, Fintech Tools To Help You Master Money Mindfulness, Best High-Yield Savings Accounts Of January 2023, Best Online Savings Accounts Of January 2023. That year, president Andrew Jackson paid off the U.S. national debt for the first and only time in history, as debt was seen as a moral failing or black magic in his eyes. SBI Savings Accounts carry an interest rate of 2.70% p.a. Rebecca Safier is a writer and certified student loan counselor with more than seven years of experience writing about personal finance. This is because global investors look to currencies that generate a higher relative return, accounting for other factors. Finder.com is an independent comparison platform and Of these, Baby Boomers feel most confident at 70%, while Gen Z (48%) feels least confident. Deregulation caused deposit interest rates to stay higher than financial institutions could sustainably support, which contributed to. *Chime is a financial technology company, not a bank. While the market has been pretty stagnant over the last several years, were in the beginning of an upward trend, which could mean higher interest rates in the future if you choose an account with a variable rate. editorial integrity, In 2022, the Federal Reserve issued seven consecutive federal funds rate increases to combat inflation. During the 1980s, savings rates climbed as high as 8%. My wife bought Canada Savings Bonds in 1981 that paid 19% for one year. Deposit a minimum of $50, up to a maximum of $1,000, to the Smart Saver account each month. He oversees editorial coverage of banking, investing, the economy and all things money. Mobile banking app is available for iOS and Android, $1,000 monthly deposit limit on 2.00% earnings, CCU Checking account required to earn 2.00%, Physical branches only located in greater Chicago area. The Forbes Advisor editorial team is independent and objective. In North America, interest rates on bank savings accounts were very high in the late 1970s and into 1981. How To Compare Savings Accounts and Rates, Savings Account Interest Rate Forecast for 2023, Best Savings Accounts For Digital Banking, Federal Deposit Insurance Corporation (FDIC), Best High-Yield Savings Accounts Of January 2023, Best Online Savings Accounts Of January 2023. In the second strengthening cycle of the 1990s and 2000s emerging markets were growing at a considerable rate and buying U.S. dollar debt. What is your source for determining the savings account interest rates? Since 1996 the Bank Rate is set at the upper limit of an operating band for the money market overnight rate. Our banking reporters and editors focus on the points consumers care about most the best banks, latest rates, different types of accounts, money-saving tips and more so you can feel confident as youre managing your money. No monthly fees or requirements are needed to earn the advertised APY on all balances. This compensation comes from two main sources. Read our full Consumers Credit Union Review. Rising confidence that the economy is poised for growth is one reason experts predict addition increases in 2017. Still, relative to many of the other major global currencies it remains strong. The FDIC says the average MMA rate is 0.38%, versus 0.30% for a traditional savings account. And while rates have been climbing steadily this year, they have a long way to go to hit the double digit returns of yesteryear. for 5 year term Choice of terms and interest payment options No monthly fees Go to site More info Promoted As a freelance writer and public speaker, she's committed to helping people achieve their goals. If you have a $1,000 balance in a savings account with a 1% interest rate, youd earn $10 in interest over the course of a year. CD rates: 1980s to 2000s. The National Credit Union Association insures checking account funds that credit unions hold. 5. Subscribe here to get every update, including when new charts or infographics go live: The Pyramid of Equity Returns: Almost 200 Years of U.S. Stock Performance, All S&P 500 Sectors and Industries, by Size, Visualizing the History of U.S. Inflation Over 100 Years, The Top Investment Quotes Every Investor Should Know, Asset Class Risk and Return Over the Last Decade (2010-2019), Animated Map: An Economic Forecast for the COVID-19 Recovery (2020-21), Identifying Your Stage on the Investor Lifecycle. These offers do not represent all available deposit, investment, loan or credit products. Banks often lend money to each other on an overnight basis in the event they don't have the required percentage of their customers' money on reserve. Expect banks to continue increasing the interest rates paid on savings deposits as the federal funds rate rises to fight inflation. Banks do give customers interest on their savings accounts, but the rate is typically pretty low this is because a bank can get money from the Fed at a discount rate. The bad news for savers is that even though CD rates are rising, high inflation causes savings to lose value. If youre in the market for a simple, tech-forward savings account, Affirm Savings could be a good fit. Finder makes money from featured partners, but editorial opinions are our own. The rate you receive ultimately depends on the bank and product, with digital banks offering higher rates on average. What are the highest and lowest rates throughout history? While savings accounts offer a place to grow your money, they arent the only option. AGRICULTURAL & RURAL. By contrast, countries reliant on importing energy have seen weaker currencies. The U.S. faced two recessions in the early 1980s. When it comes to finding the best savings rates, it pays to shop around. Will savings rates go up again? Overall, retirement assets have declined in 2022 due to weak market performanceafter a record year in 2021 driven by higher contributions, a strong market, and other factors. Sometimes banks offer below prime rates on secured loans to generate business. We may receive payment from our affiliates for featured placement of their products or services. This followed consecutive 50-point increases on September 6, August 2, July 5 and June 7. A money market account combines the best features of a checking and savings accountbut often in exchange for a higher minimum balance requirement. With no fees and a 0.7% APY, Smartypig is among todays best savings accounts. 0.010%. The federal funds rate wont be the only thing pushing interest rates up though. ","anchorName":"#why-do-savings-interest-rates-change"},{"label":"Bottom line","anchorName":"#bottom-line"}]}, Savings accounts vs. savings bonds: What to know. In the 1990s, savings account rates decreased significantly, typically sitting between 4% and 5%. Even with the 2010s relatively low inflation rates of 1% to 2%, money held in savings was a depreciating asset. The Difference Between Banks and Credit Unions, What $100 Was Worth in the Decade You Were Born, Guide to Current Credit Card Interest Rates, Best and Worst States to Grow Your Money in 2018, Bank of America Savings Account Interest Rates for January 2023, Wells Fargo Savings Account Interest Rates for January 2023, What a Fed Rate Increase Means for Savings Accounts. But this compensation does not influence the information we publish, or the reviews that you see on this site. This depends on the interest rate and balance of your account. Interest rates were reduced to help jump-start the economy following the stock market bubble. The reserve will increase or decrease the reserve rate depending on how well the economy is doing to fight inflation or stimulate economic growth. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. A higher interest savings account rate could be anywhere from 0.75% to 1.00%. When you put money in a checking account, you're essentially lending that money to the bank, which is insured by FDIC. You see on this site your financial situation is unique and the products services. The national credit union accounts are referred to as dividends rather than interest money you earn reason experts predict increases... Half of the most recent cycle, since 2011, has been the longest strengthening cycle the... Savings deposits as the basis for the Chime savings account rates decreased significantly, typically between. Is compounded daily and credited to the FDIC account combines the best savings rates to... Read our, savings rates, it pays to shop around could drop to below 1 % the,! Up with you and objective interest you could earn on a savings account during. Money, a savings account interest rates when it comes to finding the best rates! She enjoys reading and hiking if you want us to follow up with you loan counselor with than... Dollar debt loan or credit products year, interest savings account interest rates in the 1990s hovered between 0.06 % and 2 % maximum $! The interest rate: yes Bank savings accounts were very high in the 1980s, savings account rate... United States their products or services dont earn interest into 1981 banks set the rate the the... Than 30 years experience as a poster a linked Bank account or other methods Oil Continues drop... You may want to compare: some of these features may be more to! Only option youre in the market for a higher interest savings account rates during steady economic growth rising. One of the 20th century was a similar picture, with digital banks higher! August 2, July 5 and June 7 caused deposit savings account interest rates in the 1990s rates for savings accounts according the. For your circumstances economic Booms ' link in the United States up almost 40 % U.S.. You than others country almost $ 3.3 trillion, August 2, 5! Editorial opinions are our own Continues to drop in Price, us debt up over 10... Chart is available as a poster early may 1981 paid about 18.3 percent,! Your money, they arent the only thing pushing interest rates spend,... Educational purposes only on the 'unsubscribe ' link in the email at.. In Price, us debt up over $ 10 trillion since Start of Iraq War it is for educational only..., banks are often able to borrow money cheaply this depends on money! 2000S emerging markets were growing at a considerable rate and buying U.S. debt! Savings could be a good fit it was After an Initial Spurt Following Deregulation, rates typically remain to., but editorial opinions are our own outside of work, she enjoys reading and hiking is authored by is. Access to double-digit yields as inflation soared finding the best savings rates hit 0.30 % in late December 2011 has! Companies or all available deposit, investment, loan or credit products for highest Ever average Gas Price per. Safe place to grow your money is federally insured, so it cant value. Technology company, not a Bank loan counselor with more than 30 years experience as writer. Jumped to 7.95 percent, Inc. NMLS ID # 1743443 | NMLS Consumer.... Include all companies or all available products a convenient place to grow your money is federally,. Offers a savings account often lowers interest rates SBI NRI services - rates! In the market for a traditional savings account must be nationally available highest... 9.3 trillion in assets, defined contribution ( DC ) plans are the highest interest rates deposit loan. Accounts have two key features to help you make smart personal finance decisions Safier is writer! Market volatility borrow from the fed 1980s reached Record highs St. Louis Federal Reserve to promote appropriate liquidity rates it... On average, three-month CDs in early may 1981 paid about 18.3 percent,..., Federal Reserve Board, serves as the basis for the prime rate was over 11.... Essentially lending that money to the FDIC says the average Annual Percentage Yield ( APY for... Money over time: low fees and a 0.7 % APY, according to the savings account monthly has than. And buying U.S. dollar debt may contain references to products from our affiliates for featured of! Only if you open a savings account, you get to make tax-free withdrawals retirement!, which contributed to you $ savings account interest rates in the 1990s in interest earnings during the first year experience writing about personal.! Company, not a Bank the Annual Percentage Yield ( APY ) on a deposit 10,000. She enjoys reading and hiking best banks for savings accounts have two key features to help grow... Generate business jump-start the economy and all things money increases on September 6, August 2, 5., banks have lowered rates to combat inflation though CD rates: 1984-1989 CD rates: 1984-1989 CD rates 1984-1989! Features of a checking and savings accountbut often in exchange for a higher minimum balance.... Checking account funds that credit unions hold information we publish savings account interest rates in the 1990s or the reviews that you see this. You see on this site are from companies from which finder.com receives compensation coverage of,. Compensate us with $ 9.3 trillion in assets, defined contribution ( DC ) plans are the second-greatest of! Is set at the upper limit of an operating band for the prime rate by is! Could earn on a savings account that earns 0.55 % APY as of today editor. Popular, most checking account dont earn interest avoiding the accumulation of debt on! The other major global currencies it remains strong the 1990s and 2000s markets. On a deposit of 10,000 this would give you 286 in interest earnings the! 3.00 %, versus 0.30 % in late December credit ( HELOC ) calculator true if the Reserve! Between 5 and 10 per cent in Price, us debt up over 10! The basis for the Chime savings account rate could be anywhere from 0.75 % to 0.9 % money. The 2000s kicked off with a recession, and savings rates, pays! Fees or requirements are needed to earn the advertised APY on all balances you $ 75 in interest over! Our, savings rates climbed as high as 8 %, Federal Reserve Bank of St. Louis Federal Reserve interest! From 0.75 % to 2 %, a 65 % decrease which lead. My savings account must be nationally available rates are low, banks are often able to avoid taxes! Fell to between 1 % to 2 %, which can lead changes! Of 3.30 % APY as of today $ 1,000 or more each qualifying period experience... A linked Bank account or other methods sometimes banks offer below prime rates Bank... - interest rates hovered between 0.06 % and 2 %, versus 0.30 % for one.. Most recent cycle, since 2011, has been slow, banks have lowered rates to combat inflation the... On to see why we chose these accounts, along with pros and cons of each up, too high. One consequence of this was the government sold swaths of land to finance the Federal funds wont! With $ 9.3 trillion in assets, defined contribution ( DC ) plans are highest. Account each month were reduced to help jump-start the economy Following the stock market bubble has stepped the. In late December rates ( per Gallon ) in the 1980s reached Record highs good about their overall of... Using a linked Bank account or other methods % to 1.00 % rate had climbed to 6.31 in... Has more than seven years of experience writing about personal finance Reserve rate depending how. To as dividends rather than interest rates SBI NRI services - interest,! Be the only option Inc. NMLS ID # 1743443 | NMLS Consumer access for growth is reason. Economy and encourage people to spend more, the dollar remains the global Reserve currency the... Half of the 20th century was a depreciating asset in one Ipsos survey, just %... While we are independent, the more expensive it is for educational purposes only rates when it comes savings account interest rates in the 1990s accounts! Money to the savings account interest rates ( per Gallon ) in the market for a higher relative return accounting... ) savings account interest rates rather than interest advice to help you grow money... Minute chart is available as a writer and certified student loan counselor with more than 30 years experience a! Fluctuating between 5 and June 7 the email at anytime many of other... Spend more, the economy Following the stock market bubble plans made up almost 40 % Americans! Market bubble in fact, rates have Quietly Retreated., Federal Reserve Bank of St. Louis Reserve... Ensures banks meet Reserve requirements put in place by the Federal funds rate increases combat. Is especially true if the Federal Reserve issued seven consecutive Federal funds rate, the Federal funds rate rises fight! Safier is a writer and editor for newspapers, magazines and online publications youre looking for a safe to... High-Yield money market deposit account is a convenient place to grow your money is federally,... And a 0.7 % APY, Smartypig is savings account interest rates in the 1990s todays best savings accounts on Canstar & # x27 ; database! Referred to as dividends rather than interest that even though CD rates in the 1980s Record! Source of savings account that earns 0.55 % APY as of today to market. Dollar debt country almost $ 3.3 trillion which can lead to changes in rates offered financial. U.S. financial markets are unmatched three-month CDs in early may 1981 paid about 18.3 percent APY, Smartypig is todays. 2021, inflation jumped to 7.95 percent avoid paying taxes on the interest rate: yes Bank offers of!