The standard savings account interest rate in general.
Switch to High-Yield Savings Accounts for a Better Return
Forget the meager savings account rates that merely set the bar for interest rates. Aim higher, strive for an annual percentage yield (APY) well beyond the national average, like those offered by high-yield savings accounts. It's a breeze to discover a high-yield savings account boasting a competitive return and a low minimum balance requirement.
National Average Savings Account Interest Rates
Many of the best online banks boast savings interest rates surpassing the national average savings account interest rates. The higher the rate, the more interest you'll generate on your savings. As of May 2025, the national average savings account yield is just 0.59 percent APY according to our survey of institutions[3]. However, the best high-yield savings accounts are rendering returns of up to 4 percent APY!
How our Website Calculates the National Average
We survey nearly 500 banks and credit unions weekly to derive the national averages. Our survey includes institutions that are broadly accessible and offer high yields, as well as some of the nation's largest banks.
Interest Rates for Linked Checking and Savings
Linking your savings account with a checking account is a strategy to earn a higher yield at some banks. They're more common among brick-and-mortar banks, known as relationship rates. For instance, at U.S. Bank, you can achieve a higher APY by pairing a qualifying checking account with a Bank Smartly savings account. The relationship rate could be significantly higher than the standard rate based on the amount of money you keep with the bank:
- The standard APY on Bank Smartly savings is 0.05 percent APY on any balance.
- Yet, if you have another qualifying U.S. Bank account and maintain $5,000 or less across accounts, you'll rake in 1 percent APY.
- With at least $25,000 in combined balances across accounts, you'll reap 3 percent APY or more.
But you'll mostly discover higher APYs at online banks with lower minimum requirements to open the account and earn the high rate. Many online banks demand minimal opening requirements of $100 or less and pay high APYs on all balances.
- Annual percentage yields (APYs) shown are as of May 2, 2025. Our editorial team updates this information weekly, and APYs may have changed since they were last updated and may differ by region for some products.
Bottom Line
Compare online banks with traditional banks when you search for a high-yield account. You'll likely find that online banks require smaller minimum balances, won't impose monthly fees, and may pay the same APY on all balances. In many situations, these savings account interest rates will surpass what you'll earn from a savings account at a brick-and-mortar bank, even with a relationship rate.
Benchmark the national average savings rate. It should be easy to find a bank offering an APY multiple times more than the national average. Calculate the difference between the APY at a big bank compared with the yield at an online bank to perceive what higher-interest earnings look like. The magic of compounding enables your interest to generate interest over time.
Enrichment Data:
Current National Average APY for Savings Accounts
As of May 2025, the national average annual percentage yield (APY) for savings accounts varies slightly depending on the source. According to Bankrate, the average is about 0.6% APY as of May 11, 2025[4]. However, the FDIC reports a more modest average of 0.41% APY[5].
High-Yield Savings Accounts Offered by Online Banks
High-yield savings accounts offered by online banks significantly outrun the national average APY. These accounts often provide rates between 4% and 5% APY. For example, as of May 2025, Openbank offers a 4.40% APY[2], and some accounts may reach up to 5% APY[1]. These rates are alluring as they typically don't impose monthly fees and, in some instances, have minimal or no minimum balance requirements[4].
Comparison
High-yield savings accounts offered by online banks offer an impressive advantage over conventional savings accounts. They often offer APYs 10 times higher than the national average, making them more attractive for those seeking to maximize their savings growth[5]. The rates are generally more consistent and less volatile compared to traditional brick-and-mortar banks, which may offer lower rates even with a relationship rate[4]. In brief, high-yield savings accounts from online banks are a superior choice for those seeking higher interest earnings without the necessity for a large initial deposit or the risk of monthly fees.
Explore online banks for higher savings returns, as they often provide interest rates that exceed the national average savings account yield. For instance, as of May 2025, the national average savings account APY is approximately 0.6% APY, but high-yield savings accounts from online banks can offer rates between 4% to 5% APY. The finance industry, specifically personal-finance, suggests that it's essential to compare online banks with traditional ones to find high-yield accounts with lower minimum balances, fewer fees, and the same APY on all balances. These APYs from online banks are usually 10 times higher than the national average, making them an attractive option for those seeking to maximize their savings growth in the banking-and-insurance sector.
