Average Bank Interest Rates for Savings Accounts, CDs and More

The national average rates for deposit accounts in the United States remain fairly low and are trending downward. However, there is a broad range of rates among financial institutions. Some offer yields many times more than the average, while others have rates way below. As a consumer, putting your money in accounts that earn more than their benchmarks means your balances can grow faster than in an average account.

Here are the current national average rates for deposit accounts from banks and credit unions, according to the Federal Deposit Insurance Corp.

Average savings account rate: 0.43%

The national average savings rate for savings accounts is 0.43%, per the FDIC, but you can find savings accounts that offer 10 times the national average. On the other hand, there are savings accounts, particularly those at large national banks, that earn only 0.01%.

Why savings rates are important. If you’re trying to save for an emergency fund or a rainy day fund, it helps to deposit money in a federally insured account that earns as much as possible. Suppose you have $5,000 and deposit it into an account that has a 0.01% annual percentage yield. It would earn only $1 in interest after one year, for a total of $5,001 in your savings at the end of the year.

But put that same $5,000 into an account with a 4% APY and it would earn $204 in interest after one year, for a total of $5,204. You can use NerdWallet’s compound interest calculator to calculate other savings scenarios. (Skip ahead to read about the difference between interest rate and APY.)

Example savings APYs at select institutions

• Citizens, Citizens Access® Savings: 3.90%.

• Bask Bank, Bask Interest Savings Account: 4.65%.

• Chase Bank, Chase Savings℠: 0.01% effective as of 02/10/2023. Interest rates are variable and subject to change.

» Wondering how much to save? Read NerdWallet's guide on how much you should have in savings

Historical national rates

The chart below shows historical national rates for savings accounts, interest checking, certificates of deposit and money market accounts over the past 14 years.

Average interest checking account rate: 0.08%

The national average rate for checking accounts in the United States is 0.08%, according to the FDIC. Some top interest checking accounts earn much higher rates than the national average. Some accounts offer a high rate of cash-back rewards for debit card spending, but those are not considered in the interest rate average.

Why interest checking rates are important. If you want to earn interest on all your money in the bank, not just what you keep in your savings account, consider opening a checking account that earns a higher interest rate than the national average. You won’t reach the same APY heights you’d find with a high-yield savings account, but you’d still be earning interest. Because it’s important to keep a healthy amount of money in your checking account so that you don’t overdraft, you’re ensuring that money is still working for you.

Note, though, that some interest checking accounts require you to jump through a few hoops to receive the maximum interest on the account, such as signing up for e-statements, spending a minimum amount on your debit card per month or directly depositing a certain amount of money per month. Make sure you’re willing to meet these requirements before signing up for an account.

» Want to save more? Here are some of NerdWallet's best savings tips

Example interest checking APYs at select institutions

• Hope Credit Union, HOPE Rewards Checking: Up to 5.12%.

• SoFi, SoFi Checking and Savings: 0.50%.

» Read more about checking accounts vs. savings accounts

Average certificate of deposit rate: 1.84% for one-year CDs

• One-year CD: 1.84%.

• Three-year CD: 1.35%.

• Five-year CD: 1.35%.

The national average rates for CDs are 1.84% for one-year CDs, 1.35% for three-year CDs and 1.35% for five-year CDs. The figures include rates for share certificates, which is what these types of deposits are called when offered by credit unions. The FDIC shows rates for eight CD terms ranging from one month to five years, though not all banks and credit unions offer each term.

Why CD rates are important. CDs traditionally have the highest rates among deposit accounts but also the most limits on accessing your money. CDs require that you deposit a fixed sum upfront for a set period, and you generally can’t add or withdraw money after the initial deposit. Withdrawing funds before a term ends often results in a penalty worth several months’ or even years’ worth of interest. For more access to funds, consider a high-yield savings account or interest checking.

» Learn more about how much money to put into CDs

Online-focused banks and credit unions tend to have the top CD rates, which can be several times higher than average CD rates. Use a CD calculator to determine the full return you can get. Because CD rates get locked in once you open a CD, one way to hedge against losing out on higher rates in the near future is to use a CD ladder: Open multiple CDs of varying term lengths at once, and each time a CD matures, open a new longer-term CD.

» Looking to compare CDs to savings? Read NerdWallet’s primer

Example CD APYs at select institutions

Average money market account rate: 0.60%

The FDIC national average savings rate for money market accounts, sometimes called money market deposit accounts, is 0.60%. Note: A money market account is a type of savings account, but when comparing MMAs to regular savings accounts, one key difference is MMAs sometimes come with the ability to write a few checks or make a few debit card purchases each month.

Money market accounts vs. other types of accounts. As with regular savings accounts, there is a range of APYs for MMA deposit accounts. Some earn as low as 0.01% APY, while others have yields that are much higher — around 4% and 5%. Money market accounts with competitive rates typically allow you to earn higher yields than checking accounts and may be on par with some of the best high-yield savings accounts, too. But because some come with check-writing and debit card features, they also give you easier access to your funds compared with CDs and savings accounts.

Example money market account APYs at select institutions

• Sallie Mae Bank, Money Market Account: 4.20%.

• Vio Bank, Cornerstone Money Market Savings Account: 4.66%.

» Explore more: Read about money market accounts vs. CDs

The difference between interest rate and APY

The interest rate is the amount of money your account earns, expressed as a percentage. Over time, the interest an account earns also earns interest. This is known as compounding. The amount of compound interest an account earns in one year is the annual percentage yield, or APY. It’s also expressed as a percentage.

The difference between interest rate and APY is that the interest rate accounts for interest only on the original balance, while APY represents the amount of interest earned on the original balance plus compound interest in one year.

When comparing accounts between financial institutions, it is generally better to use the stated APY instead of the interest rate because the APY accounts for compound interest.

» See more: Use the calculator on this page to convert APY to interest rate

How the FDIC calculates national rates

The FDIC calculates each national rate by taking an average of deposit account interest rates at insured banks and credit unions, where data is available. The averages are weighted based on each institution’s share of domestic deposits, or market share, so bigger institutions — whether brick-and-mortar or exclusively online — represent more of a national rate’s average than smaller institutions do.

Savings and interest checking account rates are based on a $2,500 balance, while CD and money market deposit account rates are based on an average of rates at $10,000 and $100,000 balances.