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- The average savings account interest rate is 0.45% APY, but we found many national banks paying nine times more.
- Many of the best high-yield savings accounts have no fees or minimum balance requirements.
- Because rates change often, typically in lockstep with the federal funds rate, it's best to avoid rate chasing.
The average savings account in the U.S. pays 0.45% APY. But the type of savings account you have has a big impact on the amount of interest you'll earn.
Switching your savings from a traditional savings account to a high-yield savings account could help your money grow much quicker.
Understanding how the average national savings interest rate is calculated
We use data from the Federal Deposit Insurance Corporation, or FDIC. The FDIC is a government agency that insures money deposited at banks. This way, if your bank unexpectedly shuts down, you won't lose your money.
The FDIC tracks average interest rates paid on savings accounts, certificates of deposit, and money market accounts nationwide and updates its data monthly. The FDIC considers rates paid by credit unions in its data, not just banks.
Average national savings interest rate vs. other bank account interest rates
The current U.S. savings rate average is 0.45% APY, which is higher than interest-checking account interest rates but lower than money market accounts or CD interest rates.
The average interest-checking account pays 0.07% APY. It makes sense that an interest-checking account offers a lower interest rate than a savings account because the latter is primarily used for spending.
Average money market account rates offer 0.61% APY. These accounts are similar to savings accounts, but they often have higher minimum opening requirements, check-writing, and ATM access through cards, so they not be for everyone. Money market accounts also aren't as common as standard savings accounts, and may not be offered at everyone financial institution.
Average CD rates range from 0.23% to 1.81% APY, and also have the added benefit of a fixed interest rate that will remain the same for the full term length. You can't make multiple deposits, though, unless you open an add-on CD, which is a rare type of CD. Early withdrawal penalties also apply if you take out money before your term ends, which tends to be why CD rates are typically higher than savings account rates.
Factors affecting interest rates
Acknowledging the differences between APY and interest rate
When looking at individual financial institutions, two different percentages may be shared: the interest rate and annual percentage yield (APY). The interest rate of an account is often a bit lower than the APY because it only factors in simple interest. APY includes a savings account's compounding frequency and will tell you how much you can earn in a year.
Ultimately, the APY will be a more accurate depiction of the total amount of interest you'll earn, and you should look for this percentage when comparing different savings accounts.
How interest rates change
It's worth noting that interest rates change often on savings accounts. Banks move their interest rates in step with the federal funds rate — the amount the Federal Reserve charges banks to borrow money. When the federal funds rate goes down, interest rates do as well, and vice versa.
Savings interest rates slowly crept up in 2022 and 2023 and have remained high in 2024. This is because the Federal Reserve wanted to combat inflation. During the pandemic, the Fed had also cut rates to stimulate the economy, which has also significantly contributed to our current economic conditions.
The Federal Reserve cut interest rates for the first time in four years in September. Some financial institutions had already begun lowering rates on savings accounts in anticipation of federal rate changes, and it's likely this trend will continue if the Fed continues to cut rates in future meetings.
Interest rates for linked checking and savings accounts
Some banks will pay you a higher rate on your savings account if you link it to a certain checking account. Here is an interest rate comparison from a few of the biggest banks:
| Bank | Checking/savings account combination | APY (Annual Percentage Yield) without linking accounts | APY with linking accounts |
| Chase | Chase Premier Savings℠ Account with Chase Sapphire℠ Banking or Chase Premier Plus Checking℠ | 0.01% | 0.02% |
| Huntington Bank | Huntington Relationship Savings with Huntington Bank Perks Checking, Huntington Bank Platinum Perks Checking, or a private client account | 0.01% | 0.02% to 0.06% |
| TD Bank | TD Bank Signature Savings with an active personal or small business checking account | 0.01% to 0.05% | 0.01% to 4.00% |
| PNC Bank | PNC Bank Standard Savings with an eligible PNC checking account | 0.01% | 0.02% to 0.03% |
| U.S. Bank | U.S. Bank Smartly® Savings Account with U.S. Bank Smartly® Checking or U.S. Bank Safe Debit account | 0.02% to 0.26% | 2.90% to 4.10% |
Keep in mind, sometimes there are additional criteria to earn the relationship savings rate. For example, with Chase, you also have to make five transactions per month from the linked checking account. Most relationship rates still aren't competitive with what you'll earn through an online high-yield savings account. But they could be useful if you know you prefer in-person banking.
Types of savings accounts and their interest rates
Traditional savings accounts
Many banks offer savings accounts, but these traditional savings accounts earn fairly low interest rates.
Here are some of the savings account interest rates offered on all balance tiers for the most basic accounts at major banks:
| Bank | Interest rate (Annual percentage yield) |
| Chase Savings | 0.01% |
| U.S. Bank Smartly Savings | up to 4.10% |
| Wells Fargo Saving Account | 0.01% |
| TD Simple Savings | 0.02% |
| Bank of America Savings Account | 0.01% to 0.04% |
| Citi Savings Account | up to 1.37% (vary by location) |
With these low interest rates, it's hard to make money grow. But, you don't have to settle for such low interest rates.
High-yield savings accounts
A high-yield savings account could help you grow your money quicker and make your money work harder than a standard savings account, without any cost or inconvenience to you. The following are all high-yield savings accounts:
| Bank | Interest rate (Annual percentage yield) |
| Capital One 360 | 4.00% (rate as of 10/23/24) |
| Ally | 4.00% |
| Marcus by Goldman Sachs | 4.10% |
| PNC Bank | 4.45% |
| Synchrony | 4.30% |
| CIT Bank | 4.35% |
| Bask Bank | 4.85% |
| UFB Direct | 4.31% |
Based on the account interest rates above, it's easy to tell just how wide the gap is between the interest offered by a traditional savings account and an online, high-yield savings account. These accounts offer rates you'd see with some CDs, but with the flexibility to access your money when you need it.
Online banks don't have the overhead that brick-and-mortar banks do, allowing them to pass on more money in interest and charge fewer common bank fees.
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Credit union savings accounts
Many credit unions pay high interest rates on bank accounts. In some cases, they pay competitive rates on checking accounts, money market accounts, or CDs, but not on savings accounts. You usually have to open a basic savings account to become a member of a credit union, and those don't always pay impressive rates.
| Credit union | Interest rate (Annual percentage yield) |
| Alliant Credit Union | 3.10% |
| Bethpage Federal Credit Union | 0.10% |
| Connexus Credit Union | 0.10% |
| Consumers Credit Union | 0.03% |
| Navy Federal Credit Union | 0.25% |
| Pentagon Federal Credit Union | 3.00% |
| Quorum Federal Credit Union | 4.00% |
| Wings Credit Union | 0.10% to 3.04% |
Some credit unions like Alliant and Bethpage pay high rates on savings accounts. If you want to use a credit union rather than a bank, you could either choose one with a high-yield savings account or look at other high-yield accounts available, such as checking accounts or share certificates.
Savings account interest rates by balance
The balance you keep in your savings account could boost your interest rate. But at many banks, it won't make much difference. The bank you choose makes more of an impact than the amount you keep.
| Bank | APY (Annual percentage yield) | Balance required for max APY |
| Ally Savings Account | 4.00% | No balance tiers |
| Capital One 360 Performance Savings | 4.00% (rate as of 10/23/24) | No balance tiers |
| Synchrony High Yield Savings Account | 4.30% | No balance tiers |
| Marcus High Yield Online Savings Account | 4.10% | No balance tiers |
How to find the best interest rate when shopping for a savings account
When shopping for a savings account, be sure to compare offers from online banks, traditional banks, and credit unions. As a reminder, online bank and credit unions tend to offer higher interest rates for savings accounts than traditional banks. However, if you primarily want to be part of one financial institution, it still may be worthwhile to have traditional banking so you can get relationship banking benefits like higher rates.
You'll also want to consider the account's fees and accessibility. Interest rates fluctuate, so you should ensure that other parts of the banking experience meet your needs.
You may decide to open more than one type of savings account if you have multiple savings goals and find it easier to manage your money that way. Spreading out your savings across more than one financial institution can also help you qualify for additional FDIC coverage.
Average interest rates on savings accounts: FAQs
The national average interest rate on savings accounts is 0.45% APY, according to the FDIC. Many large brick-and-mortar banks pay even lower rates, while plenty of online banks pay much more. Right now, 4.20% APY or higher is a good rate on a savings account. The best savings account interest rate is up to 6.17% APY right now, and a few banks have 5% savings accounts.
High-yield savings accounts offered by online banks and credit unions tend to have the highest interest rates. Be sure to compare rates across different types of institutions before opening one.
Keeping your savings at an online financial institution that is insured by the Federal Deposit Insurance Corporation means your money is safe in the event of a bank collapse. However, it is more important than ever to understand when you're depositing funds with an FDIC-insured bank versus a fintech startup that uses intermediaries to transfer and store your funds. Recent events have cast doubt on the reliability of such "nonbanks."
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Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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