What is the Average Interest Rate for Savings Account

To make the most of your savings, it is crucial to compare rates and stay informed as they can change. Here’s everything you need to know about the Average Interest Rate for Savings Account and how you can determine reasonable rates for your needs.
average interest rate for savings accounts
What is the Average Interest Rate for Savings Account
Your savings account isn't just for emergency funds or short-term goals—it can be much more than that. Read on to learn more about the average interest rate for savings accounts and how it can benefit you.
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The national average interest rate for savings accounts is currently at 0.46% APY. To make the most of your savings, it is crucial to compare rates and stay informed as they can change. Your savings account isn’t just for emergency funds or short-term goals—it can be much more than that.

Read on to learn more about the average interest rate for savings accounts and how it can benefit you. In this blog, we will take a look into topics like how banks set their savings account rates and strategies to maximize the interest on your savings. We’ll also explore ways to optimize returns for your financial goals.

National Average Savings Account Interest Rates

The average interest rate for savings accounts in the USA is approximately 0.46% APY. This rate has experienced a steady increase throughout the year, from 0.33% APY in January 2023 to 0.46% APY as of November 2023. Notably, top financial institutions offer significantly higher rates, with some of the best savings accounts boasting impressive yields ranging from 4.50% to 5.00% APY.

On the contrary, some of the largest national banks maintain savings rates as low as 0.01% APY. This contrast emphasizes the importance of exploring alternatives, such as high-yield savings accounts, which can earn around 5% APY, surpassing the national average and providing individuals with the opportunity for better returns on their savings.

Average Interest Rates for Linked Checking-Savings Accounts

Average interest rates for linked checking-savings accounts can boost your savings. Many banks offer higher rates if you link your savings and checking accounts, with some providing a separate savings account that earns even more if linked to a checking account.

This is common among larger banks that may not offer the most competitive rates independently. Your linked checking account usually needs at least five customer-initiated transactions per statement period to qualify. It’s a strategy to consider for maximizing your savings within the same banking institution.

How Do Banks Set Their Savings Account Rates?

Banks determine savings account rates based on various factors, including the federal funds rate, economic conditions, and competition within the banking industry. When the Federal Reserve adjusts interest rates, it often influences banks to modify their savings account rates accordingly, but it’s only sometimes in proportion.

Banks try to find a balance between attracting deposits by offering reasonable rates and making money from loans. When they need more deposits, they might increase rates, and if they have enough, they might lower them. This strategy ensures that they stay competitive but also profitable.

Find out the difference between APY and Interest Rate.

How to Maximize Interest on Your Savings Account

To optimize the interest on your savings, consider opting for a high-yield savings account, exploring money market accounts that often offer competitive rates, keeping an eye out for bank bonuses, and ensuring your money is protected through FDIC or NCUA insurance.

Opt for a High-Yield Savings Account

Choosing a high-yield savings account can help boost your savings. Unlike standard accounts, these specialized options offer much higher interest rates, allowing your money to grow faster. Despite the relatively low national average, high-yield savings accounts allow you to earn above-average returns on your savings.

Consider a Money Market Account

For a practical savings approach, consider a money market account. These accounts, functioning as a mix between checking and savings, often provide higher interest rates, especially for more significant balances. They also offer flexibility with added features like debit cards and check-writing capabilities. However, some accounts may require a minimum balance to avoid fees.

Look Out for Bank Bonuses

In addition to competitive interest rates, some banks offer bonuses to new customers. If you are on the lookout for a new savings account, take the time to explore various banks and their bonus offerings. It is important to note that certain conditions, such as keeping the account open for a specific period, may apply before enjoying the bonus.

Be Sure Your Money is Protected

While seeking higher interest rates is beneficial, it is also essential to ensure the safety of your money. Always choose banks protected by the Federal Deposit Insurance Corporation (FDIC) or credit unions backed by the National Credit Union Administration (NCUA). Limit your deposits to a maximum of $250,000 with any one financial institution to guarantee complete protection in the event of a bank failure. 


In conclusion, your savings account holds more potential than just being an account for emergency funds or short-term goals. Understanding the average interest rates for savings accounts, currently standing at 0.46% APY nationally, opens opportunities to optimize returns. Maximizing interest in your savings involves strategic choices.

The key is in earning interest and safeguarding your money through FDIC or NCUA insurance. You can grow your savings account by staying informed, comparing rates, and considering these strategies. Check out Beem to supercharge your savings with a high-yield savings account.


What is a Good Interest Rate for a Savings Account?

A reasonable interest rate for a savings account generally exceeds the national average. While rates vary, aiming for a higher than 1% is favorable for maximizing your savings.

What is a “Really Good” Savings Rate?

A good savings rate often surpasses the average and may range around 1.5% or higher. The “really good” rate depends on market conditions and the specific financial institution.

How Much Interest Would $1000 Make in a Savings Account in One Year?

The interest earned on $1000 in a savings account depends on the interest rate. For instance, a 1% interest rate would yield $10 in one Year. To calculate, multiply the principal amount ($1000) by the interest rate expressed as a decimal (0.01).

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Nimmy Philip

A content specialist with over 10 years of experience, Nimmy has a knack for creating engaging and compelling content across various mediums. With expertise across journalistic features, emailers, marketing copy and creative writing, Nimmy specializes in lifestyle and entertainment content.


This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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