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.
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 June 6. 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:
Standard savings account yield: 0.01% APY
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 current national average is 0.59% as of 6-17-2024. Bankrate
Bankrate
Bankrate is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website.
scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate's score.
Why Trust Us? As of June 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.
Also, mortgage rates are still much higher than we've been used to in recent years. On 30 May 2024, the average 2 year fixed mortgage rate is 5.80%. While this is a significant drop from its July 2023 peak of 6.86%, it's still much higher than December 2021 when was 2.34%.
The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.
A stocks and shares Isa is likely to be most suitable. That is unless you will turn 55 within 30 years, in which case a pension might be a better tax wrapper for you. If you're unsure about the time horizon, you could invest in both a pension and a stocks and shares Isa.
At a 4.25% annual interest rate, your $100,000 deposit would earn a total of $4,250 in interest over the course of a year if interest compounds annually. Annual total: $104,250.
More Than Half of Americans Have Less Than $10,000 Saved
Going up a little more, just 6% have between $100,001 and $200,000 saved. Few Americans have saved more than $300,000: 4% have between $350,001 and $500,000. 4% have saved between $500,001 and $750,000 and another 4%, have more than $750,000 saved.
American households, on average, had $41,600 in savings, based on figures from the Federal Reserve in 2019. In 2022, that amount rose to about $62,500–which not only includes savings, but also assets from checking, money market accounts prepaid debit cards and more.
Mortgage rates may continue to rise in 2024. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher in 2022 and 2023.
Most older adults don't have enough money put aside for retirement—and many face a real risk of outliving their savings. The shortfall each month requires many people to depend on savings accounts or investments to fill the gaps. A large portion of seniors also go into debt just to keep up with day-to-day living costs.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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