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What is the average interest rate for savings accounts?

The average rate on a savings account is a benchmark for the overall interest rate environment, but it’s not a rate you have to settle for.

Rather, you should aim for an Annual Percentage Return (APY) that is several times the national average, like those offered by high yield savings accounts. It’s easy to find a high yield savings account that offers competitive returns with zero or low minimum balance requirements.

National average interest rate of the savings account

The national average interest rate on savings accounts is 0.06%, according to Bankrate’s weekly survey of November 24, 2021 of institutions. Many online banks have savings rates above the national average. The higher the rate, the more interest you will earn on your savings.

How we calculate the national average interest rate

Bankrate obtains rate information from the 10 largest banks and savings funds in 10 major US markets. In the National Bankrate Survey, our market analysis team collects rates and / or returns on bank deposits. The survey has been carried out in the same way for over 30 years. This consistency means that it gives an accurate national comparison of rates from apples to apples.

APY Comparison

Financial institution APY Minimum opening balance Learn more
Comenity Direct 0.55% $ 100
Allied bank 0.50% $ 0
Marcus by Goldman Sachs 0.50% $ 0
American Express National Bank 0.40% $ 0
A capital letter 0.40% $ 0
Discover the Bank 0.40% $ 0
TD Bank 0.02% $ 0
chase away 0.01% $ 0
American Bank 0.01% 25 $
Wells fargo 0.01% 25 $
Bank of America 0.01% $ 100

Note: The annual percentage returns (APYs) shown are as of November 29, 2021. The Bankrate editorial team updates this information on a monthly basis. APYs may have changed since their last update. APYs for some products may vary by region.

Interest rate for linked checks and savings

Linking your savings account to a checking account is a way to get a higher return at some banks. Sometimes referred to as relationship rates, it is more common for physical banks to offer them.

For example, at Huntington Bank, the unrelated APY for its standard savings account is 0.01% APY. But if you link a savings account with a Huntington 25 account, you will earn double: 0.02% APY. However, to avoid a monthly maintenance fee of $ 25, the Huntington 25 Checking account requires $ 25,000 in total relationship balances.

The combination of large sums of money to avoid monthly fees and the lower APYs of traditional banks is why online banks are often a better choice for those looking to find the highest APY. Online banks tend to offer a higher APY on 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 / savings account combo Return on standard savings Yield with relation Minimum check balance to avoid monthly fees
Huntington Bank Huntington Check 25 / Huntington Relational Savings 0.01% APY 0.02% APY Total relationship balance of $ 25,000 required.
chase away Chase Premier Plus Checks / Chase Premier Savings 0.01% 0.02% to 0.05% APY Average daily balance of $ 15,000 in this account or eligible investments and deposits. *

* A Linked Qualifying Mortgage can also waive the monthly Chase Premier Plus checking account charge and perform at least five customer initiated transactions during a monthly statement period using your linked checking account.

At the end of the line

Compare online banks with the big banks when looking for a high yield account. You will likely find that online banks have lower minimum balances, will not have monthly fees, and can pay the same APY on all balances. In many cases, this APY will be higher than a savings account at a traditional bank.

Use the national average savings rate as an indicator. You should be able to easily find a bank that offers an APY several times the national average.

Calculate the difference between a large bank’s APY and an online bank’s performance to see what higher interest income looks like. The power of compounding helps your interests earn interest over time.

Learn more:

  • What is a savings account?
  • Bankrate Bank Reviews
  • Saving mistakes to avoid at any age

Learn more about other savings options:

  • Money market accounts
  • Best 1 year CD rates
  • Best CD rates without penalty

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