What was the average interest rate for the savings account

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• Banks and credit unions offer different interest rates on savings accounts.
• Online banks and credit unions tend to offer the most competitive interest rates.
• Interest rates change often for both traditional and high-yield savings accounts.

The average savings account in the US has an interest rate of 0.17% APY, according to data from the FDIC.

But, the type of account you have has a big impact on your interest rate, and switching your savings from a traditional savings account to a high-yield savings account could help your money grow much quicker.

Traditional savings account interest rates

Many banks offer savings accounts, but these traditional savings accounts earn fairly low interest rates.

Today's savings account rates

Here are some of the savings account interest rates offered on all balance tiers for the most basic accounts at major banks:

With these low interest rates, it's hard to make money grow, whether your interest rate is 0.01% or 0.05%. But, you don't have to settle for such low interest rates. 

High-yield savings account interest rates

A high-yield savings account could help you grow your money quicker and make your money work harder, without any cost or inconvenience to you. The following are all high-yield savings accounts:

Earning more interest is as easy as opening a different savings account. Move your savings from a traditional account to a high-yield savings account and you'll start earning more. High-yield savings accounts earn multiple times more than a traditional savings account.

We're not talking investment returns, here — more like 1.80% to 2.75%. That's along the lines of the rates you'd see with some CDs, but with the flexibility to access your money when you need it. And, it's still significantly higher than the 0.17% APY average.

Most high-yield savings accounts are available through online-only banks. Though they're newer, you may already be familiar with several of the online banking services that offer these accounts, including Ally, Bask Bank, and Marcus by Goldman Sachs.

Online banks don't have the overhead that brick-and-mortar banks do, allowing them to pass on more money in interest. Based on the account interest rates above, it's easy to tell just how wide the gap is between the interest offered by a traditional savings account and an online, high-yield savings account.

Savings account interest rates by balance

Overall, there's no difference between average interest rates for a balance under $100,000 and a balance over $100,000 — both have an average of 0.17% APY, according to FDIC data. 

There are a few banks that reward customers with a larger balance. But, there are quite a few that offer the same interest rates no matter the balance. 

The balance you keep in your savings account could sway your interest rate. But at many banks, it won't make much difference. The bank you choose makes more of an impact than the amount you keep.

Savings account interest rates change often

It's worth noting that interest rates change often for both traditional and high-yield savings accounts. Banks move interest rates in step with the federal funds rate — the amount the Federal Reserve charges banks to borrow money. When the federal funds rate goes down, interest rates do as well, and vice versa.

As the Fed has raised interest rates in the first half of 2022, savings interest rates have slowly been going up, too. Even if they were to drop, however, it's best practice to keep saving. That way, when rates inevitably do go back up, you'll be earning interest on a larger amount of principal.

Liz Knueven

Personal Finance Reporter

Liz was a reporter at Insider, primarily covering personal-finance topics.  Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma.  She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.

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Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

• Data company S&P Global reports the average savings account earns 0.08% and CDs earn 0.09% to 0.78%.
• Online banks tend to offer higher interest rates than the average savings account. 
• Keep in mind interest rates vary by bank and may fluctuate over time.

Data company S&P Global keeps track of interest rates offered by banks for products ranging from savings accounts and CDs to personal loans.

Here are the average interest rates of several different products offered by banks:

Average bank interest rates for savings accounts

According to data from S&P Global, the average savings account interest rate is 0.08%. But, that doesn't mean it's not possible to earn more on your money. 

The average online savings account earns a much higher interest rate than the typical account from a brick-and-mortar bank. High-yield savings accounts, which work the same as a typical savings account but earn more interest, are a great way to make your money work harder. 

Compare current savings rates

Here are a few popular online banks that offer high-yield savings accounts and their interest rates: 

Average bank interest rates for CDs

CDs are a popular way to keep money growing without the risk of the stock market. These accounts lock money away for a certain amount of time, generally ranging from one month to five years depending on your bank. While taking money out before the term ends comes with a penalty, these accounts have the benefit of higher interest rates than typical savings accounts or money market accounts, on average. 

It's worth noting that CD interest rates can change based on how much money you're depositing. Here's the average interest rate for a $10,000 CD, according to data from S&P Global:

Average bank interest rates for interest checking accounts

Not all checking accounts earn interest, but there are a few accounts out there that offer this perk. 

On average, checking accounts that earn interest earn 0.05%. Keep in mind that this is an average, however, so specific accounts could earn more or less.

Here are the interest rates offered by several checking accounts: 

Average bank interest rates for money market accounts

Money market accounts tend to earn a little bit more interest than savings accounts. Money market accounts are not much different from savings accounts, and either is a good place to keep money when it needs to stay liquid and growing. 

Here are the average money market account interest rates, according to S&P Global data: 

Average bank interest rates for loans

Interest rates vary widely depending on what you need to finance. Currently, mortgages tend to have the lowest interest rates of any loan type. Personal loans have the highest interest rate of any loan product, mainly because they're unsecured loans. 

Here are the average interest rates for several types of loan products, including auto loans, home equity lines of credit and loans, personal loans, and mortgages, according to S&P Global data. 

How do you find the best bank interest rate?

The average bank interest rate varies by the type of account you're considering. Depending on what account you're looking to open, there might be other factors that play into the interest rate you'll see, like the account's balance or opening deposit. 

It's also worth noting that interest rates vary by bank. You might find that online banks have higher interest rates on savings accounts than the bank with a branch down the street. Comparing accounts is important to get the best interest rate, but making sure that the account you're considering doesn't have any fees that could eat into your earnings is equally important. 

Interest rates for both deposit accounts, like checking and savings, and loans are constantly in flux. They can change at any moment, and the account with the highest interest rate today may not be the one with the highest interest rate next month.