What Is the Average Savings Account Interest Rate?

Our experts answer your banking questions and write unbiased product reviews (here’s how to rate banking products). In some cases, we receive commissions from our partners. However, our opinions are our own. Terms apply to offers listed on this page.

• Interest rates on savings accounts vary from bank to bank.
• Online institutions tend to offer the most competitive interest rates.
• Interest rates fluctuate on both traditional savings accounts and high-yield savings accounts.

The average US savings account interest rate is 0.35% per annum. But the type of savings account you have has a big impact on your interest rates. Switching your savings from a traditional savings account to a high-yield savings account can help you grow your money faster.

Here’s what you need to know about savings rates:

How to calculate the national average savings interest rate

Uses Federal Deposit Insurance Corporation (FDIC) data. The FDIC is the government agency that guarantees money deposited in banks. This way, if your bank closes unexpectedly, you won’t lose your money.

The FDIC tracks average interest rates paid to savings accounts nationwide and updates that data monthly. The FDIC takes into account interest paid by credit unions in their data, not just banks.

National bank savings account interest rate

Many banks offer savings accounts, but these traditional savings accounts earn fairly low interest rates.

Savings account rate today

Here are some of the savings account interest rates offered across all balance tiers for the most basic accounts at major banks.

With these low interest rates, it’s hard to grow your money, whether it’s 0.01% APY (Annual Yield Yield) or 0.05% APY. But you don’t have to settle for such low interest rates.

Interest rates for linked checking and savings accounts

Some banks will pay a higher rate to your savings account if you link it to a specific checking account. Here are some examples.

Please note that there may be additional criteria for earning the Relationship Savings Rate. For example, Chase also needs to make his 5 transactions a month from a linked checking account.

Most relationship rates are still not competitive with what you get through online high yield savings accounts.

online bank savings account interest

A high-yield savings account can help you grow your money faster and put your money to better use without any expense or inconvenience.

Below are all high yield savings accounts.

A high-yield savings account offers many times the returns of a traditional savings account. We’re not talking about ROI here — something like 3.40% APY to 4.25% APY. This is in line with the rates found on some CDs, but with the flexibility to access the money when you need it. It is also still significantly higher than the APY average of 0.35%.

Online banks don’t have the overheads of brick-and-mortar banks, so you can give more money in interest. Based on the interest rates for the accounts above, you can easily get an idea of ​​how big the difference in interest rates is between traditional savings accounts and online high-yield savings accounts.

Credit union savings account interest rate

Many credit unions pay high interest rates on their accounts. In some cases, we pay competitive rates with a checking account, money market account, or CD instead of a savings account. Membership in a credit union usually requires opening a savings account, but they don’t always pay high interest rates.

Some credit unions, such as Alliant and PenFed, pay high interest rates on savings accounts. If you prefer to use a credit union rather than a bank, you can opt for a high yield savings account or explore other high yield accounts at that institution.

Ordinary deposit interest rate by balance

Interest rates may fluctuate depending on the balance in your savings account. But for many banks, it doesn’t make much of a difference. The bank you choose has more impact than the amount you hold.

Savings account interest rates can fluctuate

Be aware that interest rates change frequently on both traditional savings accounts and high-yield savings accounts. Banks move interest rates in line with the Federal Funds Rate (the amount that the Federal Reserve charges banks). If the Federal Funds Rate goes down, interest rates go down and vice versa.

Savings rates are slowly rising in 2023. But even if it drops, it’s best to keep saving. That way, when interest rates inevitably go back up, you’ll earn interest on more of your principal.

Find the savings account that’s right for you

Ultimately, you can open multiple types of savings accounts if you have multiple savings goals and find it easier to manage your money that way.

When deciding which savings account to open, take the time to check current interest rates and see if they are higher than your average savings account. You also need to consider the features of a savings account and banking in general.