The typical interest rate on savings accounts in various financial institutions.
Hello there! Let's chat about savings accounts. That dangling average savings account rate ain't worth squat, peeps. You don't want to get stuck with a crappy rate. Instead, set your sights on a damn annual percentage yield (APY) that's way higher than the national average, like the ones offered by high-yield savings accounts.
It's simple as hell to find a high-yield savings account with a competitive return and a low minimum balance requirement. Heck, even the best online banks out there provide savings interest rates higher than the national average. The higher the rate, the more cash you'll stack. The national average savings account yield is just 0.59 percent APY, according to our pals at this website as of April 29, 2025. But the cream of the crop high-yield savings accounts are cranking out APYs of 4 percent or more!
Now how our peeps at this website calculate the national average? They survey almost 500 banks and credit unions weekly, including broadly available institutions with high yields and some of the nation's biggest banks.
Linking your savings account with a checking account is another method of earning a higher yield at certain joints. They call it relationship rates. It's more common for old-school, brick-and-mortar banks to offer 'em.
For example, U.S. Bank offers higher APYs when you pair a qualifying checking account with a Bank Smartly savings account. Here's a lowdown:
- The standard APY on Bank Smartly savings is a measly 0.05 percent APY on any balance.
- But if you have another qualifying U.S. Bank account and have $5,000 or less across accounts, you'll earn a cool 1 percent APY.
- If you've got at least $25,000 in combined balances across accounts, you'll earn 3 percent APY or more.
But watch out! You'll usually find higher APYs at online banks, with lower minimum requirements to open the account and earn the high rate. Many online banks don't require a damn cent to open an account and pay high APYs on all balances.
In the end, compare online banks with traditional banks when you're on the hunt for a high-yield account. Online banks have lower minimum balances, won't hit you with monthly fees, and often pay the same APY on all balances. Online banks typically provide better interest earnings than savings accounts at brick-and-mortar banks, even with a relationship rate.
Use the national average savings rate as your guide. You should be able to 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 mean in cold, hard cash. The power of compounding will help your interest earn more interest over time.
- To bolster your savings, consider high-yield savings accounts with rates higher than the national average, which is currently at 0.59% APY according to recent data.
- Compare online banks and traditional banks when hunting for a high-yield account, as online banks often provide lower minimum balances, no monthly fees, and better interest earnings.
- You may find higher APYs at online banks, with some offering rates as high as 4% or more, compared to the traditional banks' relationship rates that require the linking of a checking account.
- To make the most of your savings, aim for a bank offering an APY multiple times higher than the national average, leveraging the power of compounding to maximize your interest earnings over time.
