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What Is the Average Savings Account Interest Rate?
Margarette Burnette is a NerdWallet authority on savings, who has been writing about bank accounts since before the Great Recession. Her work has been featured in The Associated Press, USA Today and other major newspapers. Before joining NerdWallet, Margarette was a freelance journalist with bylines in magazines such as Good Housekeeping, Black Enterprise and Parenting. She is based near Atlanta, Georgia.
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Alice Holbrook edits homebuying content at NerdWallet. She has covered personal finance topics for almost a decade and previously worked on NerdWallet's banking and insurance teams, as well as doing a stint on the copy desk. She is based in Ann Arbor, Michigan.
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The national average interest rate for savings accounts is 0.45% APY, according to the Federal Deposit Insurance Corp. Online banks typically offer savings rates that are higher than the national average, while traditional brick-and-mortar banks generally offer lower rates.
Money grows faster in an account with a higher interest rate. For example, deposit $10,000 into an account with a 5.00% APY, and it will earn a little more than $500 after a year. Put that same amount in an account with a 0.01% APY, and it only earns a dollar.
4.60%SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
5.50%*Current promotional rate; annual percentage yield (variable) is 5.50% as of 4/2/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.
Min. balance for APY
$0
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
5.30%The annual percentage yield is effective as of Thursday, June 25, 2024. APY is a fixed rate and a $1,000 minimum balance is required. Bask Bank will pay this rate and APY through your CD maturity date. Fees could reduce the earnings on your account, and an early withdrawal penalty may be imposed for early withdrawal. If your CD is not funded with at least $1,000 within 10 business days after the date the account is opened, it will automatically be closed. Read the full terms here: https://www.baskbank.com/terms-and-disclosures.pdf
Most banks will pay you for depositing and maintaining your savings there. The payment is known as interest. When you keep your money in a savings account over time, the earnings help your balance grow. Use NerdWallet’s savings calculator to figure out how much money you could save over different time periods, figuring in interest.
Interest rates for savings accounts are variable, and a bank can change them at any time. Institutions may leave their rates unchanged for weeks and even months. But if the Federal Reserve lowers or raises fund rates, many banks lower or raise savings rates accordingly.
If you are looking for a fixed savings rate and don’t plan to withdraw your money for a certain period of time, consider opening a certificate of deposit. NerdWallet’s list of best CD rates features accounts with rates above the national average for CDs.
How to find higher savings rates
If your savings account is earning less than the national average, consider making a switch. And try looking beyond the biggest banks. Some of the best savings accounts are at online institutions. These banks don’t have to pay for brick-and-mortar branches, so they can pass the savings on to their customers in the form of higher interest rates. Many also have 24/7 customer service and robust mobile apps for online banking.
In addition to higher rates, look for an account that has low or no monthly fees. Many large banks charge monthly fees on savings accounts — usually around $5 — if you don’t keep a certain minimum balance. Fees offset any interest you earn and could cause you to lose money, which isn't what you want in a savings account.
Frequently asked questions
How do savings accounts work?
Savings accounts are bank accounts that let you deposit your money and earn interest, often at a higher rate than checking accounts. You can generally access your savings funds at any time.
What is a good interest rate on a savings account?
The national average savings account interest rate is currently 0.45%, as noted in this article. But many high-yield savings accounts, especially those at online banks, earn a much higher rate.
How much money should I have in my savings account?
Aim to have at least three to six months’ worth of expenses in your savings account. If you don’t have the recommended amount today, you can take simple steps to get there, such as setting up an automatic deposit plan.
How do savings accounts work?
Savings accounts are bank accounts that let you deposit your money and earn interest, often at a higher rate than checking accounts. You can generally access your savings funds at any time.
What is a good interest rate on a savings account?
The national average savings account interest rate is currently
. But many high-yield savings accounts, especially those at online banks, earn a much higher rate.
How much money should I have in my savings account?
Aim to have at least three to six months’ worth of expenses in your savings account. If you don’t have the recommended amount today, you can take simple steps to get there, such as setting up an automatic deposit plan.