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What Is the Average Savings Account Interest Rate?
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Average interest rate for savings accounts
The national average interest rate for savings accounts is 0.17% 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.
2.50%SoFi members with direct deposit can earn up to 2.50% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). 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. Rates of 2.50% APY (with direct deposit) and 1.20% APY (without direct deposit) are current as of 09/30/2022. 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.
5.00%The Aspiration Save Account’s up to 5.00% Annual Percentage Yield (“APY”) with up to 71x the national interest rate is variable, subject to change, and only available to customers enrolled in Aspiration Plus after conditions are met. Customers not enrolled in Aspiration Plus receive 3.00% APY after conditions are met.
2.25%The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 2.25% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of September 26, 2022. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
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.
2.50%SoFi members with direct deposit can earn up to 2.50% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). 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. Rates of 2.50% APY (with direct deposit) and 1.20% APY (without direct deposit) are current as of 09/30/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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: 2.00%
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:2.00% APY (annual percentage yield) as of 9/29/2022
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: 0.01%
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 0.17%, 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.
