What is the average savings account interest rate?
The national average savings account interest rate is 0.39% APY as of early 2026, according to the FDIC.
But some online high-yield savings accounts earn far higher rates, which means most savers have an easy win to earn more without much effort.
High-yield savings accounts currently offer average rates between 3.80% and 4.25% APY, with some top accounts reaching up to 5.00% APY. That is a big difference compared to the national average.
If you keep your money in a traditional savings account, you may be earning far less than you could be.
To put this into perspective, here is what a $10,000 balance earns over one year at different rates:
0.01% APY (some traditional banks): About $1 per year
0.39% APY (national average): About $39 per year
4.10% APY (high-yield average): About $410 per year
In this scenario, the high-yield savings account is earning roughly 10 times more than the average, and an astonishing 410 times more than accounts still sitting at 0.01% APY.
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Traditional savings vs. high-yield savings accounts
Traditional savings accounts are typically offered by large brick-and-mortar banks. These accounts are convenient, but they tend to pay very little interest, often as low as 0.01% to 0.10% APY.
The low rates exist because big banks carry high overhead costs and do not need to compete aggressively for your deposits.
High-yield savings accounts, on the other hand, are most offered by online banks. Because online banks operate without costly physical branches, they pass those savings to customers in the form of higher interest rates.
These accounts are just as safe as traditional savings accounts since they are FDIC-insured, but they reward savers significantly more for the same deposit.
The national average savings rate is low because large traditional banks drag it down. Many of the biggest banks in the country pay just 0.01% APY, which pulls the overall average toward the bottom even when online banks offer much higher rates.
Since most Americans keep their savings at traditional banks, the average reflects those low rates more heavily.
This gap between what traditional banks pay and what online banks offer has grown wider over the past few years.
Savers who have not moved their money to a higher-rate account may not realize how many earnings they are missing.
How does the Federal Reserve impact your savings rate?
The Federal Reserve sets a benchmark interest rate that influences how much banks pay on deposits.
When the Federal Reserve raises its rate, banks generally offer higher savings rates to attract deposits. When they cut their rate, savings account yields tend to drop.
The average savings account rate of 0.39% APY is a reminder that not all savings accounts are equal.
High-yield savings accounts offered by banks like Axos pay significantly more, often up to 10 times higher than the national average.
By moving your savings to a high-yield account, you can make your money work harder with very little effort.
Axos ONE® is designed for savers who want more for their money. If your current account is paying less than the national average, it may be time to make a switch.
Open an Axos ONE® account today and start earning more on every dollar.