To aid in the stabilization of the economy, the Federal Reserve has severely reduced the Federal Funds interest rate through 2015 to a paltry 0.00-0.25 percent — unchanged since 2008. This number directly affects the interest rate you can earn on your savings account, as bank rates tend to follow this benchmark closely.
U.S. Average Savings Account Interest Rate
The interest rate that banks offer is their choice. Historically, online banks have offered their customers a higher interest rate because they have lower overhead costs due to the fact they do not have to pay rent on their local branches. Throughout the entire industry, however, the national average bank interest rate for savings accounts is only .21 percent. The best savings rates range from highs of 3.03% APY at Pioneer Muslim Federal Credit Union and 2.52% APY from Rutherford Postal District Employees Federal Credit Union, to 2.02% at Houston Police Credit Union.
For the security of knowing your money is safe from bank closures in a savings account, you will earn less interest on your deposit. However, it is worth keeping your cash liquid, especially with the current state of the economy. For most investing novices, any higher risk investment may feel a bit too intimidating at this time.
How to Find the Best Savings Interest Rates
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Savings accounts are a safe and effective way to invest your money for future use. The FDIC insures the balance up to $250,000, per depositor, per institution, and you are guaranteed a rate of return on your deposit. Savings accounts are an extremely low risk investment, therefore, expect the average savings account interest rate is conservative at best.



























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