What Is an Average Interest Rate on Savings Account?

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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The average interest rate on a savings account represents the average returns users receive on funds in their savings accounts. However, it’s not necessarily the amount you should settle for when researching savings accounts at various traditional banks, credit unions and online banks. 

Earn 4.00% APY on your Savings

Mobile banking done better. No overdraft fees/hidden fees. Get paid up to two days faster with direct deposit. Earn up to 15x the points on swipes.

Interest Rates on Savings Accounts: The Basics

You can put a portion of your hard-earned money in a savings account to grow it without having to put forth any effort. But in order to meet your savings goals, it’s vital to narrow down your shortlist of options to financial institutions that provide fee-free savings accounts without stringent minimum balance requirements or other red tape. 

How Interest Rates on Savings Accounts are Determined

A few factors are considered by traditional banks, credit unions and online banks when setting interest rates on savings accounts.

Supply and Demand

Banks use supply and demand to set the interest rate on savings accounts. If they want to raise more funds, the interest rate will follow suit to attract more customers and cash deposits. But the interest rate offered on savings accounts and investment products should be lower than what customers pay for loan products. 

Government Influence

The federal government also heavily influences interest rates offered on savings accounts. For example, many banks and credit unions invest in U.S. Treasuries to grow their assets. If there’s a surplus, the yields or returns are generally lower, prompting a drop in interest rate. But as the rate of return increases, so will the interest rates offered on savings accounts. 

Average Interest Rates on Savings Accounts

Below are the average interest rates on savings accounts as of September 14, 2022, per ValuePenguin.

National Average

  • 0.05 percent 

Traditional Banks

  • 0.01 percent – 2.00 percent 

Online and Fintech Banks

  • 0.50 percent – 2.50 percent 
Earn 4.00% APY on your Savings

Mobile banking done better. No overdraft fees/hidden fees. Get paid up to two days faster with direct deposit. Earn up to 15x the points on swipes.

Other Things You Should Consider When Opening a Savings Account

Primary Purpose

What’s your primary purpose for opening a savings account? Is it to have a safe space to store a sizable amount of cash, build an emergency fund or grow your money quickly? 

Your Savings Goals

Do you intend to leave the money in your savings account for a while, or will you need to use it in the near future? 

Fees and Other Costs

Are the monthly maintenance fees or paper statement fees? Will you be assessed a penalty if your account balance drops below a certain amount? 

Minimum Deposit

Is there a minimum deposit requirement? Can you afford to set this amount aside? 

Withdrawal Limits

What’s the monthly withdrawal limit? (In most instances, you can make up to six withdrawals from your savings account before incurring fees, per federal law). 

Other Bank Features

Does the financial institution you’re considering offer mobile banking? Are there branches or ATMs nearby? What are their hours of operation? 

Open a High-Yield Savings Account

When you’re ready to grow your money, don’t settle for a savings account with minimal returns. Instead, consider Current (*) , a financial technology company that offers banking solutions that allow you to earn up to 4.00 percent APY on your money. (1)

As a member, you can also take advantage of an assortment of perks, like: 

  • Faster direct deposits: Get paid up to two days sooner when you sign up with Current and switch direct deposits to your Current account. (2)
  • Cash back: Earn up to 15 points per dollar spent using your Current card at more than 14,000 retailers, grocers, gas stations and other businesses nationwide. Points can be exchanged for cash inside the Current mobile app.
  • Overdraft protection: Current’s Overdrive feature lets you overdraw your Current account by up to $200 without incurring penalties. However, you must be enrolled in direct deposit and receive at least $500 per month to access this feature. (3)
  • Fee-free ATM withdrawals: Pull funds from your Current account 24/7 at any of the 40,000 in-network AllPoint ATMs located nationwide. You can use the ATM locator tool in the Current mobile app to find ATMs near you, and you won’t incur any fees. (4)
  • No hidden fees: Unlike some traditional banks, Current doesn’t charge an assortment of hidden fees. Even better, there are no minimum balance requirements.
  • Teen account: If you have a teenager, consider setting them up with a teen account that allows them to access their funds while learning how to manage money effectively. The account also comes with a Visa debit card along with instant transfers to your parent account, fee-free ATM access, instant gas hold removals and a host of other benefits.

Download the mobile app to open an account and get started with Current today. It’s free and takes less than two minutes of your time. 


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Current is a financial technology company, not a bank. Banking services provided by and Visa® Debit Card issued by Choice Financial Group, Member FDIC, pursuant to a license from Visa U.S.A. Inc and can be used everywhere Visa debit cards are accepted.


The Annual Percentage Yield ("APY") for Current Interest is variable and may change at any time. The disclosed APY is effective as of January 1, 2022. No minimum balance is required. Must have $0.01 in savings pods to earn Current Interest on up to $2000 in deposits per Savings Pod up to $6000 total.  Please refer to Current Interest Terms and Conditions.


Faster access to funds is based on a comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds are subject to the timing of the payer's submission of deposits. Current Premium accounts only.


Please refer to Overdrive™ Features Terms and Conditions. Current Premium Accounts only.


Out of network cash withdrawal fees apply. Third-party, adding cash and Current membership fees may apply.