Average Interest Rates on Savings Accounts: A Comprehensive Guide

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• The average savings account interest rate is 0.46% APY, but we found many national banks paying 10 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. has an interest rate of 0.46% APY. But the type of savings account you have has a big impact on your interest rate. 

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 — expressed as an Annual Percentage Yield (APY) — 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.

Factors affecting interest rates

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 2023 and have remained high in 2024. Economists believe that the Federal Reserve will begin to cut interest rates in September from the current level of between 5.25% to 5.50% in response to inflation coming down. Some financial institutions have already begun lowering rates on savings accounts in anticipation of federal rate changes.

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 are some examples:

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:

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, without any cost or inconvenience to you. The following are all high-yield savings accounts:

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.

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.

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.

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. 

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