What Is the Average Savings Account Interest Rate?

Margarette BurnetteAugust 27, 2020

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Average interest rate for savings accounts

The national average interest rate for savings accounts is 0.05% 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.

Savings rates by bank

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.

Financial Institution

APY

Minimum to open

Monthly fee

Alliant Credit Union Alliant Credit Union High-Rate Savings
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0.65%

$5

None with e-statements. Otherwise, $1 monthly for paper statements.

Ally Bank Ally Bank Online Savings Account
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0.60%

None

None

American Express National Bank American Express® Personal Savings
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at American Express National Bank, Member FDIC

0.60% APY (annual percentage yield) as of 9/17/2020

None

None

Bank of America Bank of America Advantage Savings
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0.01%

$100

$8.

  • $500 minimum daily balance.

  • Linked to eligible Bank of America relationship or Preferred Rewards account.

  • Student under age 24.

Capital One Capital One 360 Performance Savings™
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0.65%

None

None

Chase Chase Savings℠
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at Chase, Member FDIC

0.01%

None

$5.

  • $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.

  • Fee waived for those younger than 18.

Consumers Credit Union Consumers Credit Union Savings Account
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0.05%

$5

None

First Tech Federal Credit Union First Tech Federal Credit Union Membership Savings
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0.05%

$5

None

Marcus by Goldman Sachs Marcus by Goldman Sachs Online Savings Account
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0.60%

None

None

U.S. Bank U.S. Bank Standard Savings Account
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0.01%

$25

$4.

  • $300 minimum daily balance.

  • $1,000 average principal monthly balance.

  • Fee waived for those younger than 18.

Wells Fargo Wells Fargo Way2Save Savings
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0.01%

$25

$5.

  • $300 minimum daily balance.

  • A recurring automatic transfer from a Wells Fargo checking account.

  • Fee waived for those younger than 18 (19 in Alabama).

» Looking for better yields? See NerdWallet’s best high-interest online accounts.

What is savings interest?

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.

Compare rates for top online banks here

Marcus by Goldman Sachs Marcus by Goldman Sachs Online Savings Account

Marcus by Goldman Sachs Online Savings Account

Barclays Barclays Online Savings Account

Barclays Online Savings Account

NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Read reviewRead review
APY

0.60%

With $0 minimum balance

APY

0.60%

With $0 minimum balance

APY

0.60%

With $0 minimum balance

Bonus

N/A

Bonus

N/A

Bonus

N/A

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