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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.
Alice Holbrook Assigning Editor | Homebuying, savings and banking products
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 0.40% 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 1.00% APY, and it will earn a little more than $100 after a year. Put that same amount in an account with a 0.01% APY, and it only earns a dollar.
4.20%SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.20% APY for savings. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 04/24/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
4.75%Annual Percentage Yield (APY) is accurate as of 05/09/2023. APY is variable and subject to change at any time without notice. No monthly service charge. No minimum balance requirement. Must fund with 15 days of opening account.
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.
4.50%Annual percentage yield (variable) is as of 5/8/23. 5.00% APY with a $75K deposit or 4.75% APY with a $25K deposit. New customers only with qualifying deposit. Terms apply.
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.
3.30%Your annual percentage yield can be as high as 3.30% based on the following combined rate rewards: direct deposits (not including intra-bank transfers from another account) totaling $1,500 or more each month will earn 0.40%. A qualifying direct deposit is required for the remaining interest rate qualifications to apply. Ten (10) point-of-sale transactions per month using your Rewards Checking Visa® Debit Card for normal everyday purchases with a minimum of $3 per transaction, or enrolling in Account Aggregation/Personal Finance Manager (PFM) will earn 0.30%; maintaining an average daily balance of at least $2,500 per month in an Axos Self Directed Trading Invest account will earn 1.00%; maintaining an average daily balance of at least $2,500 a month in an Axos Managed Portfolio Invest account will earn 1.00%; and making a monthly payment to an open Axos Bank consumer loan (commercial and business loans excluded) via transfer from your Rewards Checking account will earn a maximum of 0.60%.
Monthly fee
$0
Money market accounts pay rates similar to savings accounts and have some checking features.
Money market accounts pay rates similar to savings accounts and have some checking features.
This chart shows the rates and fees for basic savings accounts at various financial institutions, including large traditional banks, credit unions and online banks. While larger banks tend to have lower rates and monthly service charges, many online banks and credit unions offer better rates or, at the very least, no monthly fees.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
APY: 3.10%
Minimum to open: $5
Monthly fee: None with e-statements. Otherwise, $1 monthly for paper statements.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
APY:3.90% APY (annual percentage yield) as of 05/16/2023
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
APY:0.01%
Minimum to open: $100
Monthly fee: $8
3 ways to waive it
$500 minimum daily balance.
Linked to eligible Bank of America relationship or Preferred Rewards account.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
APY: 0.01%
Minimum to open: None
Monthly fee: $5.
5 ways to waive it
$300 minimum daily balance.
A repeating, automatic transfer of at least $25 from a Chase checking account.
Linked to a premium Chase checking account.
Linked to a Chase College Checking℠ account for overdraft protection.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
APY: 0.15%
Minimum to open: $25
Monthly fee: $5.
3 ways to waive it
$300 minimum daily balance.
A recurring automatic transfer from a Wells Fargo checking account.
Fee waived for those younger than 18 (19 in Alabama).
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.
Can savings rates change?
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 0.40%, 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.
