Image courtesy of Getty Images, Illustration by Isiah Davis/Bankrate
While the average savings account rate is a benchmark for the overall interest rate environment, it is not something you should compromise on.
Instead, aim for an annual percentage yield (APY) that’s many times the national average, such as those offered by high-yield savings accounts. It’s easy to find high-yield savings accounts that offer competitive rates and have no or low minimum balance requirements.
National average savings account interest rate
Many online banks offer savings interest rates that are higher than the national average interest rate on regular savings accounts. The higher the interest rate, the more interest you can earn on your savings. According to a Bankrate survey of financial institutions as of August 12, the national average interest rate on regular savings accounts was 0.61% per annum.
How Bankrate Calculates the National Average
In June 2023, Bankrate updated its methodology for determining the national average savings account interest rate. Bankrate surveys more than 500 banks and credit unions every week to generate the national average. The survey includes institutions that are widely available and offer high yields, as well as some of the largest banks in the country.
APY Comparison
| Financial Institutions | Annual Interest | Minimum opening balance | learn more |
|---|---|---|---|
| Note: Annual Percentage Yield (APY) rates shown are accurate as of August 15. Bankrate’s editorial team updates this information weekly. APYs may have changed since the last update and may vary by location for some products. | |||
| UFB Direct | 5.15% | $0 | Read Review |
| Bread Financial | 5.15% | $100 | Read Review |
| Bank of the Basque Country | 5.10% | $0 | Read Review |
| TAB Bank | 5.02% | $0 | Read Review |
| Lending Club Bank | 5.00% | $100 | Read Review |
| Synchrony Bank | 4.65% | $0 | Read Review |
| Goldman Sachs’ Marcus | 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 |
| Tracking | 0.01% | $0 | Read Review |
| Bank of America | 0.01% | $25 | Read Review |
| Wells Fargo | 0.01% | $25 | Read Review |
| Bank of America | 0.01% | $100 | Read Review |
Linked current and ordinary deposit interest rates
Linking your savings and checking accounts is one way to get a higher interest rate with some banks. This is sometimes called a relationship rate and is typically offered by banks with brick-and-mortar branches.
For example, Huntington Bank offers a higher APY to customers who combine savings and checking accounts.
- Standard Savings Account Yield: 0.01% APR
- Savings Account Yield when combined with a Huntington Parks Checking Account or Huntington Platinum Parks Checking Account: 0.02% APR
However, to avoid the $25 monthly maintenance fee, your Huntington Platinum Perks Checking account must have a combined balance of $25,000.
The combination of having a larger bankroll to avoid monthly fees and a lower APY than brick-and-mortar banks often makes online banks a better option for those looking for the highest APY. Online banks tend to offer higher savings account interest rates, including higher APYs on all balances, but some require a minimum balance to get it. Most online banks have a minimum opening requirement of $100 or less.
| bank | A combination current and savings account | Standard Savings Rate | Relationship Revenue | Minimum balance to avoid monthly checking account fees |
|---|---|---|---|---|
| Huntington Bank | Huntington Perks Check or Huntington Platinum Perks Check/Huntington Relationship Savings | Annual interest rate 0.01% | Annual Interest Rate of 0.02%* | The total relationship balance must be $25,000. |
| Tracking | Chase Premier Plus Checking or Chase Sapphire Checking/Chase Premier Savings | Annual interest rate 0.01% | Annual Interest Rate 0.02%** | The average opening day balance of eligible deposits/investments linked to this account must be $15,000 or other requirements must be met*** |
*If you have a Huntington Perks Checking Account or Huntington Platinum Perks Checking Account.
**In addition to linking your Premier Plus and Chase Sapphire checking accounts to your Chase Premier savings account, you must also make at least five transactions (initiated by you) in your linked checking account during your monthly statement cycle.
***Monthly fees on Chase Premier Plus Checking accounts are also waived for eligible linked Chase First Mortgage accounts enrolled in autopay from your Chase account. Fees are also waived for active duty and veterans of the U.S. military with eligible military ID.
Conclusion
When searching for a high-yield account, compare online banks to big-box banks. Online banks may have lower minimum balances, no monthly fees, and pay the same APY on all balances. Often, the interest rates and corresponding APYs on these savings accounts are higher than the interest rates you can earn from a savings account at a brick-and-mortar bank.
Use the national average savings rate as a guide, and you should be able to easily find banks offering APYs many times higher than the national average.
Calculate the difference between the APY of a big bank and the yield of an online bank to see what high-interest earnings look like: The power of compounding allows interest to earn interest over time.
