Although it serves as a guide for the general interest rate landscape, you should not aim for the average savings account rate.
Instead, strive for an annual percentage yield (APY) significantly higher than the average for the country, like the ones found in high-yield savings accounts. Finding a high-yield savings account with no or low minimum balance requirements and a competitive return is simple.
National average savings account interest rates
As of January 19, 2024, the national average yield for savings accounts is 0.61 percent annual percentage yield, based on the most recent survey of institutions conducted by Bankrate. Interest rates on savings accounts are higher at many online banks than at the average savings account nationwide. You will receive more interest on your savings the higher the rate.
Interest rates for linked checking and savings
In certain banks, you can increase your yield by connecting your savings account to your checking account. Often referred to as relationship rates, brick-and-mortar banks are more likely to provide them.
For example, the nonrelationship annual percentage yield (APY) of Huntington Bank’s standard savings account is 0.01 percent. However, you will receive twice that amount—0.02 percent APY—if you combine a savings account with a Huntington Perks checking account or a Huntington Platinum Perks checking account. However, the Huntington Platinum Perks Checking account needs $25,000 in total relationship balances to avoid a $25 monthly maintenance fee.
When it comes to finding the best APY, online banks are frequently a better option because they offer higher APYs than brick-and-mortar banks, especially when it comes to large sums of money to avoid monthly fees. Higher savings account interest rates, including a higher annual percentage yield (APY) on all balances, are typically offered by online banks; however, some have minimum balance requirements. The majority of online banks have $100 or less as their minimum opening deposit.
|Checking account/Savings account combo
|Standard savings yield
|Yield with relationship
|Minimum balance to avoid monthly checking account fee
|Huntington Perks Checking or Huntington Platinum Perks Checking/Huntington Relationship Savings
|0.01% APY for $0.01 to $2,000,000.99 balances 0.25% APY for $2,000,001.00 to $99,999,999,999.99 balances
|0.02% APY* for $0.01 to $2,000,000.99 balances 0.25% APY for $2,000,001.00 to $99,999,999,999.99 balances
|A total relationship balance of $25,000 is required.
|Chase Premier Plus Checking or Chase Sapphire Checking/Chase Premier Savings
|Average beginning day balance of $15,000 in this account or qualifying investments and deposits.***
*Using a Huntington Platinum Perks Checking Account or a Huntington Perks Checking Account.
** In addition to tying a Chase Premier Savings account to a Premier Plus or Chase Sapphire Checking account, you must also use that linked checking account to initiate at least five transactions with it each month during the statement cycle.
When looking for a high-yield account, compare online banks with traditional banks. Online banks are probably going to pay the same annual percentage rate (APY) on all balances, have lower minimum balance requirements, and not charge monthly fees. These savings account interest rates and the associated annual percentage yields (APYs) are frequently higher than what you would get from a savings account at a physical bank.
As a benchmark, use the average savings rate across the country. Finding a bank that offers an APY that is significantly higher than the national average should not be too difficult.
To get an idea of what higher-interest earnings look like, compare the yield at an online bank to the APY at a large bank. Over time, the compounding effect helps your interest accrue interest.