4 Percent Interest Savings Accounts (2024)

FAQs

Is 4% interest rate good for savings accounts? ›

What is a good interest rate for a savings account? While the average savings rate is 0.46%, the best high-yield savings accounts offer an APY ranging from 4.25% to 5.26%.

What is a good APY? APY, but you can find rates higher than that. Some of the best savings rates come from online banks and are around 4.00% or higher.

The formula for calculating simple interest is: Interest = P * R * T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).

As of August 2024, there are no banks are offering 7% interest rates on savings accounts. If you can find a savings account with a 7% APY, you'll earn about 15X more than the national savings rate. It's much more common to find a high-yield savings account with rates between 4% and 5% right now.

According to Rachel Sanborn Lawrence, advisory services director and certified financial planner at Ellevest, you should feel OK about taking on purposeful debt that's below 10% APR, and even better if it's below 5% APR.

"There is no right or wrong number of savings accounts," says Kendall Meade, a certified financial planner at personal finance platform SoFi. "Some people prefer to separate their savings into multiple accounts for different purposes, while others find it simpler to have all of their money in one account."

For example, if you have a balance of $1,000 earning 4.00% APY for five years, you would multiply 1,000 by 0.04 by 5 to reach a simple interest total of $200.

According to FDIC data, the average money market account earns 0.70% APY. However, the best money market accounts currently offer APYs of around 5.00% or higher. If you deposit $10,000 into one of these high-yield accounts, you would earn $513 or more in interest over a year, assuming daily compounding.

How much interest will I earn on £50,000? With £50,000 in Hanley Economic Building Society's easy access account paying 5%, you could earn £2,500.00 over a year, or £208.33 per month.

Here's how it works: Divide 72 by your expected annual interest rate (as a percentage, not a decimal). The answer is roughly the number of years it will take for your money to double. For example, if your investment earns 4 percent a year, it would take about 72 / 4 = 18 years to double.

How much interest will $20,000 earn in a year? ›

APYs are subject to change at any time without notice. In one year, the top high-yield savings accounts could earn roughly $1,000 in interest on a $20,000 deposit. A 6-month CD could earn $500 in interest, while a 5-year CD could earn almost $4,700.

= ₹ (10,406.0401 - 10000) = ₹ 406.0401.

UFB Portfolio Savings

We like that customers can earn up to 5.15% APY on all balance tiers on their savings balances with no minimum balance requirement and no monthly fee. You don't need to do anything to qualify for the highest rate, and all balance tiers currently earn the same 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.

Right now, there aren't any financial institutions offering 7% interest on a CD. However, California Coast Credit Union is offering a 5-month Celebration Certificate with a 9.50% APY.

The best 5% interest savings accounts can help you reach your financial goals faster. Whether you're saving for a down payment on a house, paying off student loans or building an emergency fund, the higher your interest rate, the sooner you'll get there.

Interest rates vary greatly depending on the type of account, supply and demand, and what the Federal Reserve sets. For a typical savings account, you could expect anywhere from 0.01-0.08%. For a high yield savings account, on the other hand, it's not uncommon to see interest rates of 0.2%-0.6%.

Bank with Chase and you can open a saver account. It'll give you 4.1% AER (4.02% gross) variable interest, which we'll calculate daily and pay monthly – directly into your saver account.

How Interest Rates Work: An Example. Suppose you borrow $100,000 to buy a home and have a fixed interest rate of 4%. That means you'll annually pay interest that is 4% of your principal loan balance. At the start of your loan term, that would come out to $4,000 annually, or about $333.33 monthly.