The average savings account interest rate
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The average savings account in the US has an interest rate of
But, the type of account you have has a big impact on your interest rate, and switching your savings from a traditional savings account to a high-yield savings account could help your money grow much quicker.
Traditional savings account interest rates
Many banks offer savings accounts, but these traditional savings accounts earn fairly low interest rates.
Here are some of the savings account interest rates offered on all balance tiers for the most basic accounts at major banks:
| Bank | Interest rate (APY) |
With these low interest rates, it's hard to make money grow, whether your interest rate is 0.01% or 0.15%. But, you don't have to settle for such low interest rates.
High-yield savings account interest rates
A high-yield savings account could help you grow your money quicker and make your money work harder, without any cost or inconvenience to you. The following are all high-yield savings accounts:
| Bank | Interest rate (APY) |
Earning more interest is as easy as opening a different savings account. Move your savings from a traditional account to a high-yield savings account and you'll start earning more. High-yield savings accounts earn multiple times more than a traditional savings account.
We're not talking investment returns, here — more like 0.4% to 0.6%. That's along the lines of the rates you'd see with CDs, but with the flexibility to access your money when you need it. And, it's still significantly higher than the
Most high-yield savings accounts are available through online-only banks. Though they're newer, you may already be familiar with several of the online banking services that offer these accounts, including Ally, Betterment, and Marcus by Goldman Sachs.
Online banks don't have the overhead that brick-and-mortar banks do, allowing them to pass on more money in interest. Based on the account interest rates above, it's easy to tell just how wide the gap is between the interest offered by a traditional savings account and an online, high-yield savings account.
Find out who has the best high-yield savings account rate right now »
Savings account interest rates by balance
Overall, there's no difference between average interest rates for a balance under $100,000 and a balance over $100,000 — both have an average of
There are a few banks that reward customers with a larger balance. But, there are quite a few that offer the same interest rates no matter the balance.
| Bank | APY | Balance required for max APY |
| $25,000 or greater, or $100 monthly deposit | ||
| No balance tiers | ||
| No balance tiers | ||
| No balance tiers |
The balance you keep in your savings account could sway your interest rate. But at many banks, it won't make much difference. The bank you choose makes more of an impact than the amount you keep.
Savings account interest rates change often
It's worth noting that interest rates change often for both traditional and high-yield savings accounts. Banks move interest rates in step with the federal funds rate — the amount the Federal Reserve charges banks to borrow money. When the federal funds rate goes down, interest rates do as well, and vice versa.
When the Federal Reserve lowered the federal funds rate over the past year, the interest rates on high-yield savings immediately took a hit. However, it's not a bad idea to open a high-yield savings account when interest rates are low and get into the habit of saving — when rates go back up again, you'll earn the higher rates on the balance you've amassed over time.