Glen BennettThe best savings rates are found not at traditional brick and mortar banks but at online banks, credit unions, and through cash management accounts, all of which typically pay several times more than the national average by skipping the overhead costs of physical branches. Chasing the highest number alone, though, can lead you astray if you ignore fees, minimums, and how often a rate can change.
What counts as a good savings rate right now
Savings rates move with the broader interest rate environment, so any specific number printed today will look dated within months. What stays useful is the comparison: the national average paid by big legacy banks tends to sit far below what online banks and credit unions offer. A rate worth pursuing is one that consistently ranks near the top of the online savings account market, not just whatever a bank advertises in a splashy introductory promotion. The gap between the best and worst savings accounts is often the single biggest lever you control in low risk saving, bigger than most people realize.
Ranked list: where to find the best savings rates
Here is a practical ranking of account types, from the categories most likely to pay top rates down to the ones that usually lag.
- Online savings accounts. Banks that operate without physical branches consistently top the rate tables because they pass on the savings from lower overhead. These are the first place most savers should look.
- Credit union savings and money market accounts. Member owned institutions frequently match or beat online banks, especially on certificates and money market accounts, though membership eligibility rules can add friction.
- Cash management accounts from brokerages. Offered by investment platforms, these accounts often pay competitive rates and bundle in check writing or debit card access, useful if you want your cash and investments under one roof.
- Certificates of deposit (CDs) and share certificates. Locking money away for a fixed term usually earns a premium over a flexible savings account, particularly on longer terms, but you sacrifice access to the funds without penalty.
- Traditional bank savings accounts. Big national and regional banks with branch networks almost always pay the least, relying on customer inertia and existing checking relationships rather than competitive rates.
Comparing the main options
The table below lays out the criteria that actually matter when you are weighing where to park cash: rate competitiveness, access to your money, fees, and who each option suits best.
| Account type | Typical rate position | Access to funds | Common fees | Best suited for |
|---|---|---|---|---|
| Online savings account | Consistently high | Transfers in one to three business days, no branch access | Usually none | Emergency funds, general savings |
| Credit union savings account | High, varies by institution | Some branch and ATM access depending on network | Rarely, may require minimum balance | Savers who value membership and personal service |
| Cash management account | High to moderate | Debit card, checks, easy transfers to linked brokerage | Usually none | Savers who also invest and want one dashboard |
| Certificate of deposit / share certificate | Highest for longer terms | Locked until maturity, early withdrawal penalty applies | Early withdrawal penalty | Money you will not need for a set period |
| Traditional bank savings account | Low | Branch and ATM access, easy transfers within same bank | Monthly maintenance fee possible | Convenience for existing customers, not rate seekers |
How to choose the right account for you
Start by defining how soon you might need the money. Cash you could need on short notice, such as an emergency fund, belongs in an online savings account or cash management account where withdrawals are penalty free. Money you are confident you will not touch for six months, a year, or longer can go into a CD or share certificate to capture a higher locked in rate. If you already bank with a credit union for other reasons, check its savings and certificate rates before opening something new elsewhere, since the paperwork and relationship may already work in your favor.
Once you have matched the account type to your timeline, compare specific institutions on rate, minimum opening deposit, whether the rate is a limited time promotional offer or the ongoing standard rate, and how the bank compounds and pays interest. A rate advertised as an annual percentage yield already reflects compounding, which makes it the correct number to compare across banks rather than a simple interest rate.
[[image: person reviewing bank statements]]Watch for these trade-offs
The highest rate on a comparison site is not always the best deal once you read the fine print. Some online banks offer a strong introductory rate that steps down after a few months. Others require a minimum balance to earn the advertised rate, and fall to a much lower rate below that threshold. Certificates carry early withdrawal penalties that can erase months of earned interest if you need the cash unexpectedly. Money market accounts sometimes require a higher minimum balance than a plain savings account to avoid a monthly fee. Always check whether the institution is FDIC insured, or NCUA insured in the case of credit unions, so your deposit is protected up to the standard coverage limit.
Steps to get the best savings rate today
- List your online bank, credit union, and brokerage cash options, and pull their current savings and CD rates side by side.
- Note the minimum deposit or balance required to earn the top rate at each one.
- Confirm deposit insurance coverage through the FDIC or NCUA before opening an account.
- Match your timeline to account type: flexible savings for near term needs, certificates for money you can lock away.
- Set a reminder to review your rate every few months, since promotional rates and market conditions change and a bank that led the pack a year ago may no longer be competitive.
Frequently Asked Questions
How to get better savings rates?
Move money out of a traditional branch based bank and into an online savings account, credit union, or cash management account, then compare the annual percentage yield, minimum balance requirements, and whether the rate is promotional before committing.
What are best interest rates today?
The best interest rates change with broader monetary policy and vary by account type, so rather than a fixed number, look at which category, online savings, credit union, or certificate of deposit, currently ranks highest relative to the others on a rate comparison site.
What are the best savings rates right now?
The top savings rates are almost always found at online only banks and credit unions rather than large traditional banks, with certificates of deposit typically paying a premium over standard savings accounts for money you can lock away.
What are the best savings rates in the UK?
In the UK, the most competitive savings rates tend to come from online banks, building societies, and fixed rate cash ISAs and bonds, with easy access accounts paying less than accounts that restrict withdrawals or lock in funds for a set term.
What are best interest rates for mortgage?
Mortgage rates depend on loan type, term length, your credit profile, and the size of your down payment, and the lowest rates typically go to borrowers with strong credit and larger deposits who compare offers from multiple lenders and mortgage brokers rather than accepting the first quote.
Jenny Ellis