Key Takeaways
- The national average savings account rate is a paltry 0.46% APY.
- Big banks typically offer savings rates well below the average (think around 0.01% APY).
- Online-only banks with lower overhead costs currently offer APYs up to 5% (or higher).
The best savings accounts aren’t merely a place to store your money -- they’re a place where your balance will get even bigger. Your deposits aren't the only thing that affects this balance. When a bank or credit union pays interest, it helps your money grow.
Financial institutions set their own savings rates. Some pay nominal amounts that won’t really impact your bottom line, while others offer sky-high rates to attract new customers. Read on to learn about the average interest rate for savings accounts -- and, more importantly, how to beat it and get the highest rate available.
What is the average interest rate for savings accounts?
The average annual percentage yield, or APY, on savings accounts is 0.46%, according to the FDIC. However, there’s no need to settle for a savings account that pays only the national average rate. You can find accounts with APYs above 5% if you shop around, particularly at online banks.
Interest rates on savings accounts at popular big banks
The biggest banks typically don't offer the best rates on savings accounts, primarily because they don't need to attract new deposit accounts to fund their lending operation.
"Big banks are swimming in deposits," said Greg McBride, CFA, chief financial analyst at Bankrate. "They're not going to raise their rates. When they do, it'll be in the tiniest of increments."
Some of the major banks, such as Chase and Bank of America, may offer rates below the national average, but offer new account bonuses that make them more attractive. However, be mindful of the long-term implications. If you’re depositing tens of thousands of dollars, a higher rate over the next year can be much more valuable than the few hundred bucks you get from a welcome bonus.
Below are the entry-level savings account APYs at the biggest banks in the US. Keep in mind that some banks offer higher savings rates for customers with higher deposit and investment balances. Additionally, some may have a minimum balance requirement to avoid a monthly service fee.
| Bank | Savings APY | Minimum balance |
| Citibank | 0.03% | $0 |
| PNC Bank | 0.02% | $25 |
| Chase | 0.01% | $0 |
| Bank of America | 0.01% | $100 |
| Wells Fargo | 0.01% | $25 |
| U.S. Bank | 0.01% | $25 |
APYs shown as of Sept. 4, 2024. Some products may not be available in certain markets. APYs may vary by region for some products.
Interest rates for savings accounts at online banks
Online banks offer the same services and banking products as traditional brick-and-mortar banks, except all transactions are conducted either via telephone or over the internet using laptops, smartphones or tablets.Â
Online banks generally offer very competitive rates on savings accounts. Those that are federally-insured with the Federal Deposit Insurance Corporation are a safe place to store your money and have less overhead than traditional banks that operate physical branches. As such, online banks can pass savings on to customers in the form of fewer fees and higher APYs.
Here’s a sample of what popular online banks are paying on their savings accounts.
| Bank | Savings APY | Minimum balance |
| Bread Savings | 5.15% | $100 |
| Bask Bank | 5.10% | $0 |
| CIBC USA | 5.01% | $1,000 |
| LendingClub | 4.80% | $100 |
| Synchrony | 4.65% | $0 |
| SoFi | 4.50% | $0 |
| Discover Bank | 4.25% | $0 |
| Ally | 4.20% | $0 |
APYs are as of Sept. 4, 2024.
The bottom line
Interest rates are beginning to fall, but they’re still sky-high compared with savings rates just a few years ago. While the biggest banks have name recognition and provide conveniences such as in-person and online banking, they don’t necessarily offer the best savings rates. Since your savings account is designed to be left alone, you don’t necessarily need access to hundreds of branches and thousands of ATMs. Instead, you simply need a place where the money will be able to grow.Â
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Even when the Federal Reserve does begin cutting rates, the best high-yield savings accounts will still be a better deal than other options. Shop around for a bank that offers a great rate today, and you can bet that the bank will continue to pay competitive rates in the future.
