For example, the average savings account rate is just 0.42%, while the best savings interest rates are generally around 4.0% to 4.5% APY. As of January 8, 2025, the highest savings account rate available from our partners today is 4.75% APY.
You should strongly consider buying down points after you have calculated the break even point. 4.75% is much easier to handle over the life of the loan rather than 7.5%. Historically speaking, these rates are on the low and moderately low side.
Vanessa Potter, assistant vice president and branch manager at Addition Financial Credit Union, pegs the best interest rate for a savings account at 4.00% or more. "To find the best interest rates on savings accounts, you need to research and take your time during the process," she advises.
A good interest rate on a personal loan is anything lower than the market's average rate. But a good rate for you depends on your credit score. For example, if you have excellent credit, a rate below 11 percent would be considered good, while 12.5 percent would be less competitive.
Although there is no strict definition for high-interest debt, many experts classify it as anything above the average interest rates for mortgages and student loans. These typically range between 2% and 7%, meaning that interest rates of 8% and above are considered high.
The target range is now between 4.25% and 4.50%. Previously, the target was 4.50% to 4.75%. With the recent announcement, savers are likely to continue seeing dips in savings rates. The Fed lowered its benchmark rate multiple times in the second half of 2024.
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.
A 3.75% mortgage rate is also considered excellent in most market conditions. It's lower than most historical averages over time.
The average two-year fixed mortgage rate for someone with a 40% deposit is around 4.8%, with some experts speculating rates could drop to around 4% by the end of 2023.
Your payment should not be more than 28%. of your total gross monthly income. That means you'll need to make 11,500 dollars a month, or 138 k per year. in order to comfortably afford this 400,000 dollar home.
At its February 2024 meeting, the Reserve Bank Board decided to leave the cash rate target unchanged at 4.35 per cent. This decision supports progress of inflation to the midpoint of the 2–3 per cent target range within a reasonable timeframe and continued moderate growth in employment.
National 30-year fixed mortgage rates remain stable at 6.86%
Additionally, the current national average 15-year fixed mortgage rate remained stable at 6.12%. The current national average 5-year ARM mortgage rate is down 3 basis points from 7.18% to 7.15%.
A 4.75% mortgage rate is currently seen as a good interest rate. This rate is below the average for both 15-year fixed loans and 30-year mortgages. At the end of 2022, good mortgage rates for 15-year fixed loans were around 5%, while rates for 30-year mortgages were in the 6% range.
Best easy-access accounts
Atom Bank's easy access account now offers the best paying rate in the UK at 4.85%. But you'll only receive this rate if you don't make any withdrawals in a month. If you do, your rate drops to 3.25%.
The average interest rate on a traditional savings account is only 0.42%, according to the FDIC. However, the best savings rates can be found on high-yield accounts, which often pay around 4.5% to 5% APY or even more.
Generally, what's considered a bad interest rate is anything higher than 10%. Ideally, you want to get an interest rate that's below 5% — but with little or bad credit, that can be harder to achieve.
3.75% is considered a good mortgage rate. This number can vary depending on the type of home loan that you have and other factors such as your credit score, the length of the loan, and other factors.
A high-interest loan is one with an annual percentage rate above 36% that can be tough to repay.
Suppose you invest $5,000 in a five-year CD paying 5% per year, with no compounding, and you make no additional contributions along the way. You would earn $250 per year, and your $5,000 would become $6,250.
There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.
For the foreseeable future, you won't find any banks that offer 7% APY on savings accounts. However, you can find some credit unions that pay 7% or more on checking accounts. Before opening an account, take a close look at the terms and conditions to determine whether you can earn the advertised rate.
Increase Your Retirement Savings
Although having $100,000 in your retirement savings is nothing to sneeze at, it's also not enough to fund a potentially long lifetime. Once you've saved that much money, you've already proven to yourself that you have the financial discipline to save even more.
It is certainly possible to retire by age 50 with $800,000 in the bank. As the above table shows, $800,000 in savings can last between 20 and 30+ years, depending on how much you spend each year.