No single bank consistently offers 8% on savings accounts right now
The short answer: no major bank is offering 8% interest on a standard savings account in 2024. The highest rates you will find are between 4.5% and 5.35% annual percentage yield (APY), and those come from online banks and credit unions, not from the large national banks you may recognize.
The 8% figure you may have seen circulating online is usually either outdated, applies to a different product (like a money market account or certificate of deposit with specific terms), or comes from a source that is not trustworthy. Banks publish their current rates publicly, so if a rate sounds too high compared to what you see on bank websites, it probably is.
What matters more than chasing the highest single rate is understanding where rates actually sit right now, how they change, and which account types can legitimately reach the upper end of the range.
Key Takeaways
- The highest savings account rates currently available are between 4.5% and 5.35% APY, offered by online banks and some credit unions, not traditional banks.
- Rates change frequently based on Federal Reserve decisions, so a rate that was accurate three months ago may no longer be current.
- Money market accounts and certificates of deposit sometimes offer higher rates than savings accounts, but they come with different rules about withdrawals and lock-in periods.
- You can compare current rates directly on bank websites or through rate-tracking sites, but always verify the rate on the bank's own site before opening an account.
Why 8% is not realistic for savings accounts right now
Interest rates on savings accounts move with the federal funds rate, which the Federal Reserve sets. When the Fed raises rates, banks raise what they pay you. When the Fed cuts rates, banks cut what they pay. The Fed has held rates in a range between 5.25% and 5.50% since mid-2023, and banks have responded by capping savings account rates in the 4.5% to 5.35% range.
An 8% rate would mean a bank is paying you more than the federal funds rate itself — something that does not happen on savings accounts because banks need to keep a margin for themselves. If you see 8% advertised on a savings account, check the fine print: it may explore only to the first month, only on deposits above a certain amount, or only in a specific state or for a specific type of customer.
Rates were higher during 2022 and early 2023 when the Fed was raising aggressively, but they have stabilized since then. The Fed may cut rates in the coming months, which would push savings rates down further.
Which banks and credit unions offer the highest rates today
Online banks consistently offer the highest rates because they have lower overhead than brick-and-mortar branches. As of early 2024, banks like Marcus (by Goldman Sachs), Ally Bank, American Express Personal Savings, and Wealthfront Cash Account are in the 4.5% to 5.35% range. These rates change frequently, sometimes weekly, so the exact ranking shifts.
Credit unions can also offer competitive rates, especially if you are a member of a larger one. The National Credit Union Administration (NCUA) publishes a rate search tool where you can find credit unions in your area and their current rates. Some credit unions offer 5% or higher on savings accounts, though they may require a minimum deposit or membership in a specific group.
Traditional banks like Chase, Bank of America, and Wells Fargo typically offer 0.01% to 0.05% on savings accounts. The difference between a 5% online account and a 0.01% traditional bank account is substantial: on a $10,000 deposit, you would earn roughly $500 per year at 5% versus $1 per year at 0.01%.
Money market accounts and CDs as alternatives to savings accounts
If you are looking for rates above 5%, you may find them in money market accounts or certificates of deposit (CDs). Money market accounts work like savings accounts but often pay slightly higher rates in exchange for higher minimum balances (sometimes $2,500 or more). CDs lock your money away for a set period — three months, six months, one year, five years — and pay a fixed rate for that entire period.
CDs sometimes offer rates above 5.5% because you are agreeing not to touch the money. If you withdraw early, you pay a penalty that can wipe out months of interest. Money market accounts let you withdraw whenever you want, like a savings account, but they may limit how many withdrawals you can make per month.
Neither of these products will give you 8%, but they are the legitimate places to look if the standard savings account rate feels too low. The trade-off is always between access to your money and the rate you earn.
How to verify rates before you open an account
Never rely on a single website or advertisement. Go directly to the bank's official website and look for the savings account or money market account page. The rate should be listed clearly, along with the APY (which includes compounding) and any conditions — like minimum balance requirements or promotional periods.
If a rate is advertised as promotional, it will say so. A promotional rate might be 5% for the first three months, then drop to 4% after that. Read the terms carefully, because the rate you see in the headline is not always the rate you will earn long-term.
Rate-tracking websites like DepositAccounts.com and BankRate.com aggregate current rates from multiple banks, which is useful for comparison. But always click through to the bank's own site to confirm the rate is still current before you deposit money.
What happens to your rate if the Fed cuts interest rates
If the Federal Reserve lowers the federal funds rate, banks will lower the rates they pay on savings accounts within days or weeks. Your existing balance will not be affected retroactively — you will keep earning whatever rate you locked in — but any new deposits will earn the new, lower rate. Some banks lower rates on existing balances too, depending on the account terms.
This is why it matters to move money into a high-yield savings account now rather than waiting. If rates are currently 5% and the Fed cuts by 0.5%, you want to have your money earning 5% before that cut happens. Once rates drop, they typically stay down until the Fed raises them again, which can take months or years.
Frequently Asked Questions
Is 8% interest on savings accounts real anywhere?
Not on standard savings accounts at legitimate banks. Some online banks and credit unions may offer promotional rates of 6% to 7% for the first month or on limited deposits, but these are temporary. If you see 8% advertised with no conditions, the source is likely not trustworthy or the fine print contains restrictions that make the rate unavailable to you.
Why do online banks pay more than traditional banks?
Online banks have no physical branches, so they spend less on rent, staff, and overhead. They pass some of that savings to customers in the form of higher interest rates. Traditional banks maintain thousands of branches, which costs money, so they can afford to pay less on deposits.
Can I move my money between accounts if rates change?
Yes. There is no penalty for moving money from one savings account to another. You can open a new account at a higher-rate bank and transfer your balance over. The transfer usually takes one to three business days. Some people move money between accounts as rates shift to always be in the highest-paying option available.
What is the difference between APY and interest rate?
The interest rate is the percentage the bank pays. APY (annual percentage yield) includes the effect of compounding — earning interest on your interest. A bank might advertise a 5% interest rate, but the APY could be slightly higher because interest compounds daily or monthly. Always compare APY to APY, not rate to APY.
Do I need a minimum balance to get the advertised rate?
It depends on the bank. Some banks offer their highest rate on any balance, no matter how small. Others require $500, $2,500, or more to earn the advertised rate. Read the account terms before opening. If you do not meet the minimum, you may earn a much lower rate.