average savings account interest ratesTo 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 average savings account interest rate you can earn, 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 savings interest rate because they have lower overhead costs — they don’t have to pay rent on their local branches.

Throughout the entire industry, however, the national average savings interest rate is only 0.17%. The best savings rates range from highs of 4.00% APY at The Bank of Greene County, to 2.52% APY at Pioneer Muslim Federal Credit Union, to 2.02% APY at Houston Police Federal Credit Union.

For the security of knowing your money is kept 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 might feel a bit too intimidating at this time.

How to Find the Best Savings Interest Rates

The best way to ensure your money is in a savings account with the best possible interest rate is to comparison shop online for all the best online savings account rates available. However, do not be lured in by a high interest rate only. You must fully read all the terms and requirements needed to qualify for the proposed annual percentage yield. Many times, in order to earn the highest interest rates available from a savings account, there are minimum deposits and time requirements for the investment.

Savings accounts are a safe and effective way to invest your money for future use. The FDIC insures balances 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, so expect the average savings account interest rate to be conservative.

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