Images by Getty Images; Illustration by Issiah Davis/Bankrate
The average savings account rate is a benchmark for the overall interest-rate environment, but it’s not a rate you should settle for.
Rather, aim for an annual percentage yield (APY) many times the national average, such as those offered by high-yield savings accounts. It’s easy to find a high-yield savings account that offers a competitive return with a no or low minimum balance requirement.
The national average yield for savings accounts is 0.58 percent APY as of May 28, 2024, according to Bankrate’s most recent survey of institutions. Many online banks have savings interest rates higher than the national average savings account interest rates. The higher the rate, the more interest you’ll earn on your savings.
How Bankrate calculates the national average
In June 2023, Bankrate updated its methodology that determines the national average savings account rates. Bankrate surveys more than 500 banks and credit unions weekly to generate the national averages. Included in the survey are institutions that are broadly available and offer high yields, as well as some of the nation’s largest banks.
APY comparison
Financial institution
APY
Minimum opening balance
Learn more
Note: Annual percentage yields (APYs) shown are as of May 23. Bankrate’s editorial team updates this information weekly. APYs may have changed since they were last updated and may vary by region for some products.
TAB Bank
5.27%
$0
Read review
UFB Direct
5.25%
$0
Read review
Bread Financial
5.15%
$100
Read review
Bask Bank
5.10%
$0
Read review
LendingClub Bank
5.00%
$100
Read review
Synchrony Bank
4.75%
$0
Read review
Marcus by Goldman Sachs
4.40%
$0
Read review
Capital One
4.25%
$0
Read review
Discover Bank
4.25%
$0
Read review
Ally Bank
4.20%
$0
Read review
TD Bank
0.02%
$0
Read review
Chase
0.01%
$0
Read review
U.S. Bank
0.01%
$25
Read review
Wells Fargo
0.01%
$25
Read review
Bank of America
0.01%
$100
Read review
Interest rates for linked checking and savings
Linking your savings account with a checking account is one way to earn a higher yield at some banks. Sometimes called relationship rates, it’s more common for brick-and-mortar banks to offer them.
For instance, at Huntington Bank, a higher APY is offered to customers who pair a savings account with a checking account:
Savings account yield when paired with a Huntington Perks Checking or Huntington Platinum Perks Checking account: 0.02% APY
To avoid a $25 monthly maintenance fee, however, the Huntington Platinum Perks Checking account requires $25,000 in total relationship balances.
The combination of large amounts of money to avoid monthly fees and lower APYs from brick-and-mortar banks are why online banks are often a better choice for those looking to find the highest APY. Online banks tend to offer higher savings account interest rates — including a higher APY across all balances, but some require a minimum balance to earn it. The majority of online banks have minimum opening requirements of $100 or less.
Bank
Checking account/Savings account combo
Standard savings yield
Yield with relationship
Minimum balance to avoid monthly checking account fee
Huntington Bank
Huntington Perks Checking or Huntington Platinum Perks Checking/Huntington Relationship Savings
0.01% APY
0.02% APY*
Total relationship balance of $25,000 required.
Chase
Chase Premier Plus Checking or Chase Sapphire Checking/Chase Premier Savings
0.01% APY
0.02% APY**
Average beginning day balance of $15,000 in this account or qualifying investments and deposits.***
* With a Huntington Perks Checking account or a Huntington Platinum Perks Checking account.
** Besides linking a Premier Plus and a Chase Sapphire Checking account with a Chase Premier Savings account, you also need to make at least five transactions — that you initiate — with that linked checking account during the monthly statement cycle.
***A linked qualifying first mortgage enrolled in automatic payments can also waive the monthly fee on the Chase Premier Plus Checking account.
Bottom line
Compare online banks with larger banks when you search for a high-yield account. You’re likely to find that online banks have lower minimum balances, won’t have monthly fees and may pay the same APY on all balances. In many cases, these savings account interest rates, and the corresponding APYs, will be higher than what you’ll earn from a savings account at a brick-and-mortar bank.
Use the national average savings rate as your gauge. You should be able to easily find a bank that’s offering an APY multiple times higher than the national average.
Calculate the difference between the APY at a big bank compared with the yield at an online bank to see what higher-interest earnings look like. The power of compounding helps your interest earn interest over time.
The national average yield for savings accounts is 0.65 percent APY
APY
APY is an abbreviation for “annual percentage yield,” which is the percentage that indicates how much interest a bank account, such as a certificate of deposit (CD) or a high-yield savings account, earns in one year.
as of May 30, 2024, according to Bankrate's most recent survey of institutions. Many online banks have savings interest rates higher than the national average savings account interest rates.
However, the Federal Reserve maintains their projection that there will be three interest rate cuts in 2024, reducing the federal funds rate to a range of 4.5% to 4.75%. Our new comparison tool — in partnership with Bankrate — will help you find the best rates available now.
As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
According to the FDIC, the national average interest rate on savings accounts stands at 0.46% APY (as of April 15, 2024). This applies to both average and jumbo deposits, which are accounts with a balance over $100,000.
MBA: Rates Will Decline to 6.4% In its April Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 6.8% in the first quarter of 2024 to 6.4% by the fourth quarter. The industry group expects rates will fall below the 6% threshold in the fourth quarter of 2025.
Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.
Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.
It's generally advised to save three to six months' worth of expenses in an emergency fund. With our example, your emergency fund should ideally be $15,000 to $30,000.
What is a good interest rate on a savings account? As of April 2024, you can find banks and credit unions offering online savings accounts with a 4.5% APY or higher. Some even go above 5% APY. That's much higher compared to the national average of 0.46% APY.
You should consider saving 10 - 15% of your income for retirement. Sound daunting? Don't worry: your employer match, if you have one, counts. If you save 5% of your income and your boss matches another 5%, you've accomplished a 10% savings rate.
If you plan to take advantage of high interest rates this year, you might be wondering if your high-yield savings account interest is taxable. The answer is yes, but these types of accounts can offer the potential for significant savings, so don't let that discourage you from opening one.
Pros. Marcus offers competitive interest rates for all of its products. The balance requirements for CDs are relatively low. Savings accounts don't have a minimum balance requirement or monthly service fee.
Just as the Fed raised interest rates when inflation soared, the central bank is expected to start cutting interest rates now that inflation has cooled.
But after two years of increases, there are strong indications that auto loan rates could start to come back down in 2024 — perhaps by a substantial amount.
The Federal Reserve announced at its May 2024 Federal Open Market Committee (FOMC) meeting that it would maintain the overnight federal funds rate at the current range of 5.25% to 5.5%.
The 4.28% composite rate for I bonds issued from May 2024 through October 2024 applies for the first six months after the issue date. The composite rate combines a 1.30% fixed rate of return with the 2.96% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U).
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