Savings Account Interest Rate

8/4/2022by admin

excrysinba1971.netlify.com › Savings Account Interest Rate 〓

Share

A high-yield savings account, also known as a high-interest savings account, is a savings account that earns interest at a higher rate than a traditional savings account. The average savings account interest rate tends to hover around 0.20% APY, but big brick-and-mortar banks often offer interest rates. This Special Interest Rate offer is available only in branches. To earn the Special Interest Rate ('Special Rate'), you must (i) enroll a Platinum Savings Account in this offer by speaking to a banker and requesting the Special Rate; (ii) deposit $25,000 or more in new money to the enrolled account; and (iii) maintain a minimum daily balance of $25,000 in the enrolled account. Fixed-rate accounts can pay higher interest in return for keeping your money in an account for a set period of time. If you take your money out sooner, there can be high penalties and you could miss out if interest rates rise during the savings term. You can save regularly into other kinds of accounts too, so weigh up your options. And when you open a savings account online, you’ve got options to choose from. Whether you want to earn 5X the national average savings rate with 360 Performance Savings™, or help your kids learn the power of saving with a Kids Savings account, it’s easy to find an account that works for you. A high-yield savings account is a type of savings account that earns higher than average interest on the balance amount. With 360 Performance Savings, a high-yield savings account, you’ll earn 5X the national average savings rate on all balances, so you earn more with every dollar you save.

When shopping around for the right savings account, it’s important to know what you want from the account. It’s also important to know how your options stack up against the competition. Are you currently earning below the average savings account interest rate? Are there other accounts out there that would allow you to earn more on interest? Here are the average interest rates on savings accounts, as well as some accounts that outpace the average.

Average Interest Rate for Savings Accounts

According to the FDIC, the national average interest rate on savings accounts currently stands at 0.04% APY. This applies to both average and jumbo deposits (balances over $100,000).

While it was once easy to find a savings account at your local bank offering rates upwards of 3%, rates dropped precipitously following the Great Recession, with the national rate falling to approximately 0.22% for average deposits in 2009. The decline in rates is thanks in large part to the Federal Reserve lowering rates in December of 2008 and holding them steady until 2015. The Fed made four rate hikes in 2018, which helped boost savings account APYs. However, they dropped three times in 2019.

You’ll typically find the lowest interest rates at brick-and-mortar banks. Big banks often offer a 0.01% APY on their most basic savings accounts. There is sometimes an opportunity to earn at a better rate on higher balances, but even this higher tier rarely goes beyond 0.10% APY.

If you’re looking for the best rates in the industry, you’ll have much better luck with savings accounts at online banks. Interest rates in this category get bumped up into the 1.50% to 2.00% APY range, and these high rates are often accessible to customers regardless of balance tier. Some of the best online savings accounts are at Ally Bank, Marcus by Goldman Sachs and Synchrony.

Overview of Online Savings Accounts
Bank Account	Minimum Balance for Rate	APY
TAB Bank High-Yield Savings	$1	0.50%
HSBC Direct Savings	$1	0.15%
Citizens Access Online Savings Account	$5,000	0.40%
Ally Bank Online Savings Account	$0	0.50%
Marcus by Goldman Sachs High-Yield Savings	$0	0.50%
Synchrony High-Yield Savings	$0	0.50%

Average Interest Rate for Linked Checking-Savings Accounts

Often, savings accounts can earn higher rates if you link it with a checking account from the same bank. Some banks may even offer a separate savings account, with a higher rate, that requires a linked checking account. This is typically the case with big banks that can’t offer the most competitive rates overall.

For example, the Chase Premier Savings account normally earns 0.01% APY. However, if you link either a Chase Premier Plus Checking or Chase Premier Platinum Checking account, you can earn at slightly higher rates. Your linked checking account must also have at least five customer initiated transactions per statement period.

Checking-Savings Account APYs
Bank Account	Standard APY	Minimum Balance for Relationship Rate	Relationship APY
Chase Premier Savings	0.01%	$0 $50,000 $100,000 $250,000	0.02% 0.03% 0.04% 0.05%
Fifth Third Relationship Savings	0.01%	$0.01	0.02%
PNC Standard Savings	0.01%	$1 $2,500	0.02% 0.03%

Bottom Line

The average interest rate on a savings account is very low – low enough that your savings won’t keep pace with inflation. However, you can beat the average and find the best savings account rates by opening an online savings account. If having in-person access to your accounts is important to you, then you can still check out accounts at traditional banks. Just understand that these banks will likely offer the lowest rates on their savings accounts. These rates will be below the national average, and well below what you could earn at an online bank.