Average savings account interest rate across financial institutions
Crush the National Average with High-Yield Savings Accounts
Stashing your cash in a savings account may seem like a snooze, but it's essential to choose one with a high-yield that'll let your money truly grow. The standard savings account rate is a mere benchmark, not a goal worth settling for.
Instead, aim for an annual percentage yield (APY) that leaves the national average in the dust, like the kind you'll find in high-yield savings accounts. It's not rocket science - locating a high-yield savings account that offers a competitive return with minimal hassle is as easy as pie.
National Average Savings Account Interest Rates
You'll find the best online banks offering interest rates that outshine the national average savings account rates. The higher the APY, the more you'll rake in on your hard-earned savings. Our survey shows that the national average savings account yield stands at approximately 0.61% APY[3]. However, the cream of the crop high-yield savings accounts are offering rates up to 5% APY[2].
How We Deliver the National Average
We sift through nearly 500 banks and credit unions weekly to generate the national averages[4]. The pool includes broadly available banks, high-yield providers, and even the nation's biggest banks.
Interest Rates for Linked Checking and Savings
Coordinating your savings account with a checking account could earn you a higher yield at certain establishments. Sometimes known as relationship rates, they are frequently found at brick-and-mortar banks. For example, at U.S. Bank, by combining a qualifying checking account with a Bank Smartly savings account, you could score a higher APY[1]. The specifics depend on how much money you keep with the bank:
- Standard APY on Bank Smartly savings: 0.05% APY on any balance.*
- With another qualifying U.S. Bank account and $5,000 or less across accounts: 1% APY.*
- Over $25,000 in combined balances across accounts: 3% APY or more.*
However, online-only banks boast higher APYs with lower minimum requirements to open the account and reap the high rewards. Many online banks require a minimum opening balance of $100 or less and pay high APYs on all balances[3].
*APYs shown are as of June 5, 2025. Our editorial team updates this information weekly. Rates may have changed since they were last updated and may vary by region for some products.
Bottom Line
Before diving into the savings deep end with a traditional brick-and-mortar bank, cast a wider net and compare online banks. You'll likely discover that online banks boast lower minimum balances, don't charge monthly fees, and can pay the same APY on all balances. Many times, these savings account interest rates will outperform what a savings account at a brick-and-mortar bank offers, even with a relationship rate.
Use the national average savings rate as your starting point. Your objective should be to easily find a bank offering an APY multiple times higher than the national average.
Execute the Compound Effect
Calculate the disparity between the APY at a big bank versus an online bank to visualize the impact of higher-interest earnings. The power of compounding allows your interest to generate more interest over time.
Key Takeaways:- Online banks usually offer higher APYs (up to 5%) with fewer hoops to jump through.- Traditional banks typically provide lower APYs with more limitations.- National Average: 0.61% APY for savings accounts overall[3].
Online banks offer significantly higher APYs compared to both the national average and what traditional brick-and-mortar banks typically provide.
The personal-finance industry suggests focusing on high-yield savings accounts instead of settling for the national average savings account rate. By choosing a high-yield savings account, you can earn more on your savings, as compared to the national average of approximately 0.61% APY[3]. In contrast, online banks offer interest rates that outshine the national average savings account rates, with some high-yield savings accounts offering rates up to 5% APY[2]. These accounts are essential in the banking-and-insurance industry for personal-finance management, as they help you grow your savings more efficiently.
