Final answer:
Current interest rates for savings accounts are typically lower than those for CDs, with exact rates varying based on economic conditions and the policies of financial institutions, such as credit unions. Rates have generally declined since the 2008 recession.
Step-by-step explanation:
The current savings account interest rates are generally lower than the rates paid on CDs—certificates of deposit. This is because CDs require investors to lock in their deposits for a set period, like six months, one year, or five years, offering higher interest as compensation for reduced liquidity. The exact rate for a savings account varies and may be influenced by several factors, including the state of the economy, inflation rates, and monetary policies set by central banks. Typically, credit unions might offer more competitive interest rates than traditional banks, sometimes ranging from 6%-10%. However, these rates are not standard and can fluctuate over time. The historical context provided by Bankrate.com data shows that interest rates for financial products like CDs have experienced a decline, particularly since 2008 during the Great Recession.