Here’s How the Average Savings Account Interest Rate Compares to Yours

Compare these savings interest rates to the national average.

The average interest rate on savings accounts is a 0.08% APY, but many of the largest financial institutions in the U.S. pay low rates, around just 0.01% APY. If your current savings account interest rate is as low as 0.01 percent, it might be time to switch banks.

GOBankingRates has identified 10 of the best savings account interest rates available right now, which all have rates higher than 1 percent. To get a competitive rate, start researching banks to consider whether you might want to move your money to one of the best savings accounts of 2018.

These are some of the best interest rates currently available for various types of savings accounts:

Interest Rates on Savings Accounts
BankSavings AccountAPY
Synchrony BankHigh Yield Savings1.85%
Bank of Internet USASmart Savings Account1.30%
CIT BankHigh Yield Savings1.55%
Sallie Mae BankSmartyPig1.55%
Ally BankOnline Savings Account1.80%
Barclays Bank DelawareOnline Savings Account1.85%
Marcus by Goldman SachsOnline Savings Account1.85%
FNBO DirectOnline Savings Account1.85%
Discover BankOnline Savings Account1.75%
American Express BankHigh Yield Savings Account1.75%
Bank of Internet USA and Sallie Mae Bank rates are accurate as of July 17, 2018. All other rates are the current interest rates today.

How to Find the Best Savings Account Rates

In June 2018, the Federal Reserve announced that it expects to keep raising interest rates because of the strong economy. Key rates have been boosted twice in 2018, with the current range at 1.75 percent to 2 percent. When interest rates rise and banks earn more on their money, they often raise interest rates on savings accounts.

Savings account rates probably won’t beat stock market returns, but they are safe investments with very low risk. Savings accounts can be a good place to park your emergency fund or other liquid savings that you’ll need to access quickly. Although the national interest rate on savings accounts is 0.08 percent, online banks typically offer higher rates.

Online banks don’t pay for overhead costs like brick-and-mortar banks do, so they can pass those savings on to their customers. For example, Synchrony Bank and Bank of Internet USA offer online savings accounts with some of the highest interest rates — significantly higher rates than the average interest rate and the rates of some of the biggest banks in America.

To get the best savings rate, you need to do your research; focus on account details including current interest rates. You should also gather information about the accounts’ minimum opening deposit requirements, balance requirements, maintenance fees and other fees. If you’re considering switching to an online account, make sure it’s the best online savings account for your needs. Consider a high-yield savings account if you can meet the minimum balance requirement.

See: Online Bank Rates That Beat the National Average

Interest Rate Trends to Watch

The Fed is expected to make a total of three rate hikes in 2018. These increases might impact the average savings account interest rate you can earn at banks and credit unions, but these changes affect consumers slowly, so don’t expect a big increase anytime soon. If you can find an interest rate higher than the 0.08 percent national average, take advantage of it now.

Federal Interest Rate History

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The Fed raised its key short-term interest rate by a quarter of a percentage point in December 2015, which was just the second time it had hiked rates since the U.S. central bank dropped its lending level to zero during the financial crisis of 2008.

Since the rate increase in December 2015, the Fed has raised interest rates six times: once in 2016, three times in 2017 and twice so far in 2018. Federal Reserve officials believe that rates could be high enough to potentially start slowing growth as soon as 2019.

Up Next: 2018 Interest Rate Forecast — How the Fed Rate Hike Will Impact You

Keep in mind, a federal rate hike doesn’t guarantee a rise in the average savings account rate. For this to happen, the Fed has to boost the rate significantly while the trickle-down process slowly starts to impact consumers, so you might not notice higher savings account rates for some time.

The average savings account interest rate history shows this slow impact: In June 2015, the average interest rate was 0.06 percent; in June 2016, it was 0.06 percent; and in June 2017, it was 0.06 percent, despite the fact that there were rate hikes each of those years. Although you might eventually earn extra interest on your savings, one of the best ways to grow your money is by practicing good financial habits and saving diligently.

Even if interest rates remain low, savings accounts are safe and effective ways 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. With the right savings account, you can have peace of mind knowing your money is earning interest while safely tucked away at a bank or credit union.

More on Savings Accounts

Bank of Internet USA and Sallie Mae Bank rates are accurate as of July 17, 2018. All other rates are the current interest rates today.

GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved, or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met in order to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.

GOBankingRates bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their personal circumstances. 

Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been endorsed by American Express.