Interest rates on savings accounts determine how quickly your money grows while it sits in the bank. If you research the average rate for savings accounts, however, you might be surprised to find that the interest rates across banks can vary significantly.
At the time of publication, the national average savings account rate is 0.39% annual percentage yield (APY). By contrast, the APY for high-yield savings accounts may be close to 3.00% to 4.00% or sometimes higher.
The gap is significant, and can mean earning just a few dollars versus hundreds over the course of a year. Rather than settling for the national average, it can be worth seeking out a savings account that pays a meaningfully higher rate.
Table of Contents
- What Is the National Average Savings Rate in 2026?
- How Do Average Rates at Traditional Banks Compare?
- Why Are Online Savings Account Rates Typically Higher?
- How Can You Find the Best Interest Rate for Your Savings?
- What to Look for When Comparing Savings Accounts
- How Will the Federal Reserve Affect Savings Rates in 2026?
- The Takeaway
- FAQ
Key Points
ā¢ The national average savings account rate is 0.39% APY as of late 2025, per the FDIC.
ā¢ The FDIC’s national average tends to be much lower than the best available rates.
ā¢ Interest rates at large, traditional banks tend to be lower than the national average.
ā¢ High-yield savings accounts, typically offered by online banks, often pay many times the national average.
ā¢ The difference between a top-tier APY and the national average can amount to hundreds of dollars per year.
What Is the National Average Savings Rate in 2026?
As of December 15, 2025, the APY for a U.S. savings account stood at 0.39%, according to the Federal Deposit Insurance Corporation (FDIC). For comparison, money market accounts averaged 0.58%, while the average six-month certificate of deposit (CD) paid 1.58% APY.
Those headline averages hide a dramatic divide. Large, legacy banks frequently pay very little ā some branches still advertise 0.01% APY for basic savings accounts. Meanwhile, many online banks and smaller institutions may offer an APY of 3.00% or higher.
For savers, this means the āaverageā tells you approximately what many banks may pay, not whatās available if youāre willing to shop around.
How the National Average Savings Rate Is Calculated
The FDIC calculates the national average savings account rate by collecting interest rate data from FDIC-insured banks for savings deposit products.
To avoid skewing the data towards smaller institutions offering niche rates, the FDIC uses a weighted average based on each bankās share of total deposits. Because many of the biggest banks offer low savings rates, the national average ends up being pulled down ā even below what some large banks themselves pay.
Recommended: How to Calculate Interest in a Savings Account
How Do Average Rates at Traditional Banks Compare?
If you keep your savings at a large national bank, you may see very low interest rates on standard savings accounts. As of late 2025, many of the largest banks were still offering near-zero yields.
Hereās a look at the APYs for basic savings accounts as of December 16, 2025 at the five largest banks in the U.S.
| Bank | APY |
|---|---|
| Chase | 0.01% |
| Bank of America | 0.01% |
| Citibank | 0.03% |
| Wells Fargo | 0.01% |
| U.S. Bank | 0.05% |
This doesnāt mean that big banks never offer competitive products. Some provide promotional or tiered-rate accounts that offer higher yields. But for everyday savings held in standard brick-and-mortar accounts, the numbers tend to remain low.
Why Are Online Savings Account Rates Typically Higher?
Online savings account rates are typically higher because these institutions typically have lower overhead costs compared to traditional banks. Without a vast network of physical branches to maintain, online banks can avoid major expenses such as rent/mortgage, utilities, maintenance, and a large on-site staff. These savings can then be passed on to customers in the form of higher APYs and lower (or no) fees.
For customers, this difference can be substantial. While a traditional savings account might offer an APY of around 0.01%, online high-yield savings accounts often provide rates of 3.00% or more. All FDIC-insured online banks help ensure your money is safe (up to insured limits), just like traditional banks.
How Can You Find the Best Interest Rate for Your Savings?
You donāt have to accept the national average savings interest rate. Here are some of the most effective ways to earn a higher APY:
Focus on High-Yield Savings Accounts (HYSAs)
High-yield savings accounts (HYSAs) typically pay rates many times higher than the national average, allowing your money to grow faster while remaining safe and accessible. HYSAs are often provided by online banks, which can offer better rates due to lower operating expenses. Some credit unions, which operate as not-for-profit institutions, also offer competitive rates, though they may require specific membership criteria.
Compare APY, Not Just the Interest Rate
When looking for a competitive rate for a savings account, itās important to focus on annual percentage yield (APY), not just the interest rate. The interest rate is the basic rate at which your money earns interest, but the APY offers a more accurate picture of how much your account will grow because it includes the effect of compounding, which is the process of earning interest on both your initial principal and the accumulated interest.
The frequency of compounding can vary between financial institutions (e.g., daily, monthly, quarterly, or annually), so an account with a slightly lower stated interest rate might actually yield more if it compounds more frequently.
By standardizing returns to one year with compounding included, APY allows you to compare savings accounts apples to apples and choose the best return.
Recommended: High-Yield Savings Account Calculator
What to Look for When Comparing Savings Accounts
In addition to APYs, here are several other factors to consider when choosing a savings account:
• Minimal balance requirements: Some savings accounts require a sizable opening deposit or a minimum ongoing balance to qualify for the highest APY. Youāll want to make sure your balance meets these thresholds so you donāt miss out on the top rate.
• Bank fees: Monthly maintenance fees can quickly eat into your interest earnings. To avoid them, you can either choose a savings account with no account fees (common with online banks and credit unions) or meet requirements set by banks that charge fees, such as maintaining a certain minimum balance or linking a checking account.
• Accessibility: Consider how youāll be able to access and manage your money. Ideally, you want to choose a bank that offers a wide network of free-free ATMs, plus a robust mobile app with features like mobile check deposit, automatic transfers, and account alerts.
How Will the Federal Reserve Affect Savings Rates in 2026?
Savings account interest rates are typically variable, not fixed, and tend to move in response to changes in the Federal Reserveās benchmark federal funds rate, though the timing and magnitude can vary by bank.
When the Fed raises interest rates, savings account yields generally increase. When the Fed cuts rates, APYs usually fall. In 2025, the Fed lowered the federal funds rate three times. While competitive rates are still available, they have begun trending downward.
Banks also adjust rates based on supply and demand. If a bank needs more deposits to support lending, it may raise savings rates to attract funds. If deposits are plentiful and loan demand is weak, rates may decline. Competition among banks and broader economic conditions further impact this constantly shifting landscape.
The Takeaway
The national average savings interest rate, at approximately 0.39% APY as of late 2025, significantly understates the potential for savings growth. Rates at large traditional banks are often near-zero, but high-yield savings accounts (HYSAs) from online institutions often pay 3.00% APY or more, offering a substantial difference in earnings.
By comparing APYs, looking for accounts with low fees, and prioritizing FDIC-insured HYSAs, you can maximize the return on your savings and ensure your money works harder for you.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, youāll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What is a typical interest rate for a savings account at a large national bank?
Traditional savings accounts, particularly those offered by large, brick-and-mortar banks, generally offer a low interest rate. As of late 2025, the national average annual percentage yield (APY) for a savings account is 0.39%, according to the FDIC. However, some large banks offer rates significantly below this average, sometimes as low as 0.01% APY on their standard savings products.
What is considered a high-interest savings account?
A high-interest savings account, often referred to as a high-yield savings account, is one that offers an annual percentage yield (APY) significantly above the national average. Given that the national average APY for savings accounts is around 0.39% as of late 2025, an account offering an APY of significantly higher than that number may be considered “high-interest.” Some online banks and credit unions offer high-yield accounts that may be upwards of 3.00% to 4.00% APY, making them a popular choice for savers looking to maximize their returns.
How much more interest can you earn with a high-yield savings account?
The amount of extra interest you can earn with a high-yield savings account (HYSA) is often substantial, especially when compared to the national average or the rates offered by large traditional banks. For example, if you have a $10,000 balance and earn 0.01% APY, you would earn $1 in interest over one year. If you move that same $10,000 to a top-tier HYSA offering 3.00% APY, you would earn $300 in interest over one year, a difference of $299. The larger your savings balance and the greater the rate difference, the more pronounced this gap in earnings becomes over time.
How is APY calculated?
The annual percentage yield (APY) is calculated by taking the interest rate and factoring in the effect of compounding over the course of one year. This means it shows you the total return on your savings, including both the base interest earned and the interest earned on that interest. The formula for APY is: APY = [1 + (i / n)]n ā 1, where:
• āiā is the interest rate
• ārā is the stated annual interest rate (as a decimal)
• ānā is the number of compounding periods per year.
Are high-yield savings accounts safe?
Yes, high-yield savings accounts (HYSAs) are generally safe, provided they are offered by institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) for banks, or the National Credit Union Administration (NCUA) for credit unions.
FDIC or NCUA insurance protects your deposits up to $250,000 per depositor, per account ownership category (such as single, joint, or trust account), per insured institution, in the event the bank or credit union fails. When choosing an HYSA, always confirm the institution’s insurance status, regardless of whether it is a traditional or an online bank.
Do I have to pay taxes on the interest I earn in a savings account?
You are generally required to pay taxes on the interest you earn from a savings account. The interest is considered ordinary income by the IRS, and it is taxable at your regular federal income tax rate. If you earn $10 or more in interest in a given year, your bank will issue you a Form 1099-INT detailing the amount of interest earned. You must report this amount when filing your annual tax return.
Can a savings account interest rate change?
Yes, a savings account interest rates can change at any time. Banks often adjust rates based on market conditions, such as changes in the federal funds rate or overall economic trends. Unlike fixed-rated products like certificates of deposit (CDs), savings accounts usually have variable interest rates, so your earnings may increase or decrease over time.
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SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFiĀ® Bank Debit MastercardĀ® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holderās SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holderās employer, payroll or benefits provider or government agency (āEligible Direct Depositā) via the Automated Clearing House (āACHā) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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