Introduction
Although it serves as a baseline for the general interest rate environment, the average savings account rate is not one that you should accept.
Instead, strive for annual percentage yields (APYs) that are significantly higher than the US average, like those provided by high-yield savings accounts. Finding a high-yield savings account with a low or no minimum balance requirement and a competitive return is simple.
National average savings account interest rate
According to the Bankrate’s weekly survey of institutions conducted on August 24th, the average interest rate for savings accounts throughout the country is 0.13 percent. Savings rates at several online banks are greater than the national average. You’ll earn more interest on your savings the higher the rate.
How we calculate the national average interest rate
Bankrate collects rate data from the ten biggest banks and thrifts in ten significant US markets. Our market analysis team collects rates and/or yields on banking deposits for the Bankrate national survey. For more than 30 years, the poll has been conducted in the same manner. Because of its uniformity, the rates may be accurately compared on a nationwide level.
Annual percentage yield comparison
| Financial institution | Annual percentage yield | Minimum opening balance |
|---|---|---|
| Bread Savings (formerly Comenity Direct) | 2.15% | $100 |
| TAB Bank | 1.92% | $0 |
| Synchrony Bank | 1.80% | $0 |
| Ally Bank | 1.75% | $0 |
| Capital One | 1.75% | $0 |
| Marcus by Goldman Sachs | 1.70% | $0 |
| Discover Bank | 1.70% | $0 |
| TD Bank | 0.02% | $0 |
| Chase | 0.01% | $0 |
| U.S. Bank | 0.01% | $25 |
| Wells Fargo | 0.01% | $25 |
| Bank of America | 0.01% | $100 |
Interest rates for linked checking and savings
In some institutions, you can increase your interest by connecting your savings account with a checking account. They are also known as relationship rates, and physical banks are more likely to give them.
For instance, the nonrelationship APY for the regular savings account at Huntington Bank is 0.01 percent APY. However, you can earn twice as much, or 0.02 percent APY, if you combine a savings account with a Huntington Perks Checking or Huntington Platinum Perks Checking account. However, the Huntington Platinum Perks Checking account requires a total relationship amount of $25,000 to avoid a $25 monthly maintenance fee.
Online banks are frequently a preferable option for people trying to get the greatest APY due to the combination of big sums of money to avoid monthly fees and lower APYs from brick-and-mortar banks. Online banks often give greater APYs for all balances, while some of them have minimum balance requirements. The majority of online banks have $100 or lower minimum opening requirements.
| 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/Chase Premier Savings | 0.01% APY | 0.02% APY | Average beginning day balance of $15,000 in this account or qualifying investments and deposits.** |
Conclusion
When looking for a high-yield account, contrast internet banks with bigger banks. Online banks are more likely to have reduced minimum balance requirements, no monthly fees, and possibly the same APY on all amounts. This APY will frequently be greater than a savings account at a physical bank.
As a benchmark, use the country’s average savings rate. Finding a bank that offers an APY that is significantly greater than the average should be simple.
To understand what greater interest earnings look like, compute the difference between the APY at a large bank and the yield at an internet bank. Your interest will eventually accrue interest thanks to the magic of compounding.