Savings account interest rates: an average overview
In the current financial landscape, the national average APY (Annual Percentage Yield) for savings accounts is approximately 0.38% to 0.57%, according to various sources[2][3][5]. However, high-yield savings accounts, particularly from online banks, offer much higher APYs, often ranging from about 3.6% to 4.44%.
For instance, Peak Bank, an online-only division, currently offers the highest APY at 4.44%, although this is available only for new accounts[1]. Other competitive online banks like TAB Bank, Chime+, Citizens Access, Ally Bank, Marcus by Goldman Sachs, and Synchrony provide APYs from roughly 3.6% to 4.3%, typically with no or very low minimum balance requirements[2].
Comparing APY at a big bank with the yield at an online bank can help you understand the potential for higher-interest earnings. Online banks tend to offer higher APYs with lower minimum balance requirements and no monthly fees, making them more attractive for savers looking to maximize interest earnings. Traditional brick-and-mortar banks usually have lower rates and sometimes require linking checking accounts or maintaining higher minimum balances to earn better rates, which often remain below what online banks pay[2][5].
The table below summarises the main differences between online banks and traditional banks regarding APY, minimum balances, fees, and account access:
| Feature | Online Banks | Traditional Banks | |-------------------------|------------------------------------------------|---------------------------------------------| | APY | Typically between 3.6% and 4.44% (high-yield) | Much lower, around the national average (~0.38% to 0.57%) | | Minimum Balance | Usually $0 to very low (e.g., $0.01) | Often higher, may require linked checking accounts for better rates | | Fees | Generally no monthly fees | May have fees or restrictions attached | | Account Access | Fully online, no physical branches | Physical branches, online access available |
It's important to note that U.S. Bank offers higher APYs by pairing a qualifying checking account with a Bank Smartly savings account[4]. Online banks typically do not have monthly fees, and the average savings account rate is not recommended as a settlement rate.
In conclusion, if your priority is to maximize the interest earned with minimal balance requirements, high-yield savings accounts at online banks outperform traditional banks significantly in both APY and flexibility as of mid-2025[1][2][5]. Users' feedback helps improve the website's content and services, and APYs may vary by region for some products.
To maximize your interest earnings and minimize balance requirements, consider a high-yield savings account from an online bank, as they often offer higher APYs compared to traditional banks. For instance, online banks like Peak Bank, TAB Bank, Chime+, Citizens Access, Ally Bank, Marcus by Goldman Sachs, and Synchrony offer APYs ranging from 3.6% to 4.44%. These accounts typically come with no or very low minimum balance requirements and incur no monthly fees, making them ideal for personal-finance management.
