Current Average Savings Interest Rates

National Average Bank Account Interest Rate Trends

Savings interest rates, often expressed as annual percentage yields (APYs), have remained relatively stable over the past year, though accounts with higher yields have dipped slightly. This is largely due to the Federal Reserve's decision to cut the federal funds rate three times toward the end of 2024.

However, those rates are still higher than they were before the Fed started hiking interest rates in March 2022 to combat runaway inflation.

The federal funds rate, which is the rate banks use to lend to each other to meet overnight reserve requirements, directly influences the rates many financial institutions offer on savings products.

Here's a look at how average savings yields have changed in recent months.

Savings Rate Trends

Average Traditional Savings Account Rate: 0.38%

A traditional savings account is a basic interest-earning deposit account designed to help you set money aside while keeping it relatively accessible. These accounts are commonly offered by brick-and-mortar banks and credit unions, and tend to come with low APYs and minimal requirements.

While traditional savings accounts are a safe place to park your money—thanks to Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) insurance and no market risk—they aren't great for maximizing returns. They're best suited for storing emergency funds or short-term savings if you're not chasing high interest rates.

Average Interest Checking Account Rate: 0.07%

An interest-bearing checking account functions just like a standard checking account but pays you a small amount of interest on your balance. These accounts often come with perks like debit cards, everyday banking and bill pay, combining everyday flexibility with modest earnings.

While interest checking accounts offer convenience, they may also require higher minimum balances or come with monthly maintenance fees that offset any interest earned. They're best suited for people who keep larger balances in checking or want to earn a little extra without sacrificing access to their money.

Average High-Yield Savings Account Rate: 1.73%

A high-yield savings account is a type of deposit account that earns significantly more interest than a traditional savings account. These accounts are typically offered by online banks and credit unions, which helps keep overhead costs low and interest rates higher. However, some traditional banks also offer them.

HYSAs are ideal for short-term savings goals or emergency funds because they offer both liquidity and safety. What's more, some of the best HYSA rates are upwards of 4%. However, APYs can fluctuate with market conditions.

Average 1-Year CD Rate: 2.48%

A certificate of deposit is a time deposit account that pays a fixed interest rate in exchange for locking in your money for a set period—in this case, one year. CDs are best for people who don't need immediate access to their funds and want a guaranteed return.

Some of the best CD rates are often better than what you'd earn with a savings or checking account. However, withdrawing funds early usually means paying a penalty. If you're confident you won't need the money for a while, a one-year CD can be a smart place to park your cash.

Learn more: Best 1-Year CD Rates

Which Type of Account Should You Get?

The best account for your money depends on how soon you'll need access to it and whether earning interest is a top priority. As you evaluate your financial situation, needs and goals, here are some factors to keep in mind when comparing your options:

^*Source: FDIC
^**Source: Curinos LLC

The Bottom Line

Choosing the right type of savings account comes down to how you plan to use your money and what you want from your savings. If you need flexibility and easy access, an interest checking or traditional savings account might be enough, though your returns will be minimal.

For better earnings without giving up liquidity, a high-yield savings account offers a strong middle ground. And if you can afford to set your money aside for a while, a one-year CD can help you lock in a higher rate. As with any financial decision, it's important to weigh the pros and cons of each option carefully to find the best fit for your financial goals.