Image courtesy of Getty Images, Illustration by Isiah Davis/Bankrate
While the average savings account rate is a benchmark for the overall interest rate environment, you shouldn't settle for that rate.
Instead, aim for an annual percentage yield (APY) that's many times the national average, such as those offered by high-yield savings accounts. It's easy to find high-yield savings accounts that offer competitive rates and have no or low minimum balance requirements.
National average savings account interest rate
Many online banks offer savings interest rates that are higher than the national average savings account interest rate. The higher the interest rate, the more interest you'll earn on your savings. According to a Bankrate survey of financial institutions as of June 24, the national average savings account yield was 0.59 percent annualized.
How Bankrate Calculates the National Average
In June 2023, Bankrate updated its methodology for determining the national average savings account interest rate. Bankrate surveys more than 500 banks and credit unions every week to generate the national average. The survey includes institutions that are widely available and offer high yields, as well as some of the largest banks in the country.
APY Comparison
Financial Institution APY Minimum Opening Balance Learn More Note: Annual Percentage Rates (APY) shown are accurate as of June 27. Bankrate's editorial team updates this information weekly. APYs may have changed since the last update and may vary by location for some products. TAB Bank 5.27% $0 Read review UFB Direct 5.25% $0 Read review Bread Financial 5.15% $100 Read review Bask Bank 5.10% $0 Read review LendingClub Bank 5.00% $100 Read review Synchrony Bank 4.75% $0 Read review Marcus by Goldman Sachs 4.40% $0 Read review Capital One 4.25% $0 Read review Discover Bank 4.25% $0 Read review Ally Bank 4.20% $0 Read review TD Bank 0.02% $0 Read review Chase 0.01% $0 Read review US Bank 0.01% $25 Read review Wells Fargo 0.01% $25 Read review Bank of America 0.01% $100 Read review
Linked current and ordinary deposit interest rates
Linking your savings and checking accounts is one way to get a higher interest rate with some banks. This is sometimes called a relationship rate and is typically offered by banks with brick-and-mortar branches.
For example, Huntington Bank offers a higher APY to customers who combine savings and checking accounts.
Standard Savings Account Yield: 0.01% APY Savings Account Yield when combined with a Huntington Perks Checking Account or Huntington Platinum Perks Checking Account: 0.02% APY
However, to avoid the $25 monthly maintenance fee, your Huntington Platinum Perks Checking account must have a combined balance of $25,000.
The combination of having a larger bankroll to avoid monthly fees and a lower APY than brick-and-mortar banks often makes online banks a better option for those looking for the highest APY. Online banks tend to offer higher savings account interest rates, including higher APYs on all balances, but some require a minimum balance to get it. Most online banks have a minimum opening requirement of $100 or less.
Bank Checking/Savings Account Combination Standard Savings Rate Relationship Rate Minimum Balance to Avoid Monthly Checking Account Fees Huntington Bank Huntington Parks Checking Account or Huntington Platinum Parks Checking Account/Huntington Relationship Savings APR 0.01% 0.02%* Total relationship balance required is $25,000. Chase Chase Premier Plus Checking Account or Chase Sapphire Checking Account/Chase Premier Savings APR 0.01% 0.02%** Average opening date balance for this account or eligible investments and deposits is $15,000.***
*If you have a Huntington Perks Checking Account or Huntington Platinum Perks Checking Account.
**In addition to linking your Premier Plus and Chase Sapphire checking accounts to your Chase Premier savings account, you must also make at least five transactions (initiated by you) in your linked checking account during your monthly statement cycle.
***Monthly fees on Chase Premier Plus checking accounts are also waived on linked eligible first mortgages enrolled in autopay.
Conclusion
When searching for a high-yield account, compare online banks to big-box banks. Online banks may have lower minimum balances, no monthly fees, and pay the same APY on all balances. Often, the interest rates and corresponding APYs on these savings accounts are higher than the interest rates you can earn from a savings account at a brick-and-mortar bank.
Use the national average savings rate as a guide, and you should be able to easily find banks offering APYs that are many times higher than the national average.
Calculate the difference between the APY of a big bank and the yield of an online bank to see what high-interest earnings look like: The power of compounding allows interest to earn interest over time.