The current average savings APY is 0.46%. Since the Federal Reserve began increasing the federal funds rate in March 2022, average savings accounts interest rates have increased by 667%, from 0.06% to 0.46%.The interest rate on 1-year certificate of deposits (CDs), typically one of the highest-yield savings vehicles, currently averages 1.81%.
Here are the average rates paid by all federally insured depository institutions and credit unions for the most common interest-bearing bank accounts, based on the most recent FDIC data available as of April 15, 2024.
Average national savings interest rates
| Deposit Products | National Deposit Rates (April 15, 2024) |
|---|---|
| Savings | 0.46% |
| Interest Checking | 0.08% |
| Money Market Account | 0.66% |
| 1-month CD | 0.22% |
| 3-month CD | 1.65% |
| 6-month CD | 1.57% |
| 12-month CD | 1.81% |
| 24-month CD | 1.54% |
| 36-month CD | 1.41% |
| 48-month CD | 1.32% |
| 60-month CD | 1.39% |
Data source: FDIC.gov
What's a good APY on a high-yield savings account?
While the average savings rate is 0.46%, the best high-yield savings accounts offer an APY ranging from 4.25% to 5.26%.
The best rates for savings accounts typically come from online-only banks. An online bank can offer higher rates since it doesn't have the same costs as brick-and-mortar banks.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | up to 4.50%² Rate infoYou can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.Min. to earn: $0 | New customers can earn up to a $300 bonus with qualifying direct deposits!¹ | Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. |
Open Account for CIT Platinum Savings OnCIT'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 4.85% APY for balances of $5,000 or more Rate info4.85% APY for balances of $5,000 or more; otherwise, 0.25% APYMin. to earn: $100 to open account, $5,000 for max APY | N/A | Open Account for CIT Platinum Savings OnCIT'sSecure Website. |
Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.Min. to earn: $0 | N/A | Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. |
Is a high interest rate good for a savings account?
A savings account's annual percentage yield, or APY, is the amount of interest you earn in a year. Earning a higher APY can make a significant difference.
For example, $5,000 in an account offering the 0.4642% national average APY would earn $2321 per year. The same amount in an account earning a higher rate of 5% APY will earn $250 per year.
The beauty of compounding interest means this gap will only widen as time goes on. You should look for banks that offer high annual percentage yields. The higher the account's APY, the faster your savings will grow.
How to find a better savings account interest rate
How much interest you earn will vary a lot depending on the bank and account type. Online-only banks tend to have better rates since they do not have to pay the same overhead costs that brick-and-mortar banks do. Some online banks, and fintech companies that work with partner banks, also offer higher APYs on savings accounts because they're competing for customers' deposits.
Keep in mind that since the APY on a savings account is variable, the rate will fluctuate -- banks typically raise or lower their savings account APYs when the Fed raises or lowers interest rates. Banks can also change the APY on your savings account anytime if they choose.
An online high-yield savings account or credit union savings account may offer higher rates than the average bank can. CDs and money market accounts typically offer higher rates than savings accounts do. These could also be alternatives to try for a better rate.
If you find a better rate, ask your bank if it can match or beat it. If not, consider switching to another bank.
The Ascent's best savings accounts
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. The Ascent's top savings account picks can earn you more than 10x the national average savings account rate.
Best Savings Accounts
FAQs
Yes, interest rates on savings accounts change based on various factors. The APY for savings accounts are variable rates and can change without notice. Banks will adjust their savings rates based on economic conditions and changes to the Federal Reserve’s federal funds rate.
The national average interest rate for savings accounts is currently 0.46%. This is the average of rates paid by all insured depository institutions and credit unions for which data is available. Any account that pays more than this would be considered above average or high.
The interest rate for your savings account is the APY. You can look at your savings account statements or log into your account online to find the APY the bank is paying you. Typically, it's under the account details section. You can also contact your bank, check your bank's website or mobile app, or if your bank has brick-and-mortar branches, visit in person to find out the interest rate.
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