The average savings account rate is a measure of the general interest rate environment, but it’s not the rate you should accept.
Instead, aim for an annual rate of return (APY) that is many times the national average, such as those offered by high-yield savings accounts. It’s easy to find a high-yield savings account that offers competitive returns with no or low minimum balance requirements.
National Average Savings Account Interest Rate
The average interest rate on savings accounts nationwide is 0.06%, according to Bankrate’s April 27 weekly survey of institutions. Many online banks have savings rates higher than the national average. The higher the interest rate, the more interest you will earn on your savings.
This is how we calculate the national average interest rate
Bankrate receives interest rate information from the 10 largest banks and savings institutions in 10 major U.S. markets. In the National Bank Interest Rate Survey, our market research team tracks interest rates and/or yields on bank deposits. The survey has been conducted in the same way for more than 30 years. This consistency means accurate apple-to-apple price comparisons across the country.
APY comparison
| Financial institution | APY | Minimum opening balance | |
|---|---|---|---|
| Bread Savings (formerly Comenity Direct) | 1.00% | ||
| American Express National Bank | 0.60% | $0 | |
| CapitalOne | 0.60% | $0 | |
| Marcus by Goldman Sachs | 0.60% | $0 | |
| Ally Bank | 0.50% | $0 | |
| Discover Bank | 0.50% | $0 | |
| TD Bank | 0.02% | $0 | |
| Chase | 0.01% | $0 | |
| U.S. Bank | 0.01% | $25 | |
| Wells Fargo | 0.01% | $25 | |
| Bank of America | 0.01% | $100 |
Linked Checking and Savings Rates
Linking your savings account to a checking account is one way to earn higher rates of return at some banks. Sometimes called relationship rates, it’s more common for brick-and-mortar banks to offer them.
For example, at Huntington Bank, their standard savings account has an APY of 0.01% APY. However, if you pair your savings account with an HD 25 checking account, you’ll earn twice as much: 0.02% APY. However, to avoid the $25 monthly maintenance fee, the Huntington 25 checking account requires a $25,000 relationship credit.
The combination of a lot of money to avoid monthly fees and the lower APY of brick-and-mortar banks is why online banks are often a better option for those looking to find the highest APY. Online banks generally offer higher APY for all balances, but some require a minimum balance to earn. Most online banks have a minimum account opening requirement of $100 or less.
| Bank | Checking account/Savings account combo | Standard savings yield | Yield with relationship | Minimum balance to avoid monthly checking account fee |
|---|---|---|---|---|
| Huntington Bank | Huntington 25 Checking/Huntington Relationship Savings | 0.01% APY | 0.02% APY | Total relationship balance of $25,000 required. |
| Chase | Chase Premier Plus Checking/Chase Premier Savings | 0.01% APY | 0.02% APY | Average beginning day balance of $15,000 in this account or qualifying investments and deposits.* |
Нижня лінія
When looking for a high-yield account, compare your online bank to the big banks. You may find that online banking has a lower minimum balance, no monthly fee, and may pay the same APY for all balances. In many cases, this APY will be higher than a savings account at a brick and mortar bank.
Based on the national average savings rate. You should be able to easily find banks that offer APYs several times higher than the national average.
Calculate the difference between the APY of a large bank and the yield of an online bank to see what higher interest income looks like. The power of compound interest can help your interest earn interest over time.
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