Your deposits aren’t the only thing that affects this balance.
When a bank or credit union pays interest, it helps your money grow.
Financial institutions set their own savings rates.
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What is the average interest rate for savings accounts?
The average annual percentage yield, or APY, on savings accounts is 0.46%, according to theFDIC.
However, theres no need to settle for a savings account that pays only the national average rate.
“They’re not going to raise their rates.
When they do, it’ll be in the tiniest of increments.”
However, be mindful of the long-term implications.
Below are the entry-level savings account APYs at the biggest banks in the US.
Keep in mind that some banks offer higher savings rates for customers with higher deposit and investment balances.
Additionally, some may have a minimum balance requirement to avoid a monthly service fee.
APYs shown as of Sept. 4, 2024.
Some products may not be available in certain markets.
APYs may vary by region for some products.
Online banks generally offer verycompetitive rates on savings accounts.
Heres a sample of what popular online banks are paying on their savings accounts.
APYs are as of Sept. 4, 2024.
Instead, you simply need a place where the money will be able to grow.
