What's the common annual percentage yield for savings deposits?
Ready to turbocharge your savings game, buddy? Ditch the paltry national average savings account rate and set your sights on an annual percentage yield (APY) that'll leave those zeroes reeling.
Embrace the high-yield savings accounts, my friend, and aim for rates that leave the national average dust. While the national average APY is hovering around 0.6%, the best high-yield accounts can boast rates of 4% APY and beyond, as per our survey data.
Unveiling the National Average
We survey nearly 500 banks and credit unions every week to produce the national averages, taking into account broadly available institutions with high yields, as well as some of the nation's major banks.
Banking in Pairs: Checking and Savings
Linking your savings to a checking account might just be the key to earning a higher yield at some banks. Known as relationship rates, these are more common in brick-and-mortar banks.
For instance, U.S. Bank offers a higher APY with a qualifying checking account paired with their Bank Smartly savings account. The relationship rate could soar significantly above the standard rate depending on your account balances:
- With a standard APY on Bank Smartly savings of 0.05%, having another qualifying U.S. Bank account and $5,000 or less across accounts earns you a 1% APY.
- With at least $25,000 in combined balances across accounts, you could net 3% APY or more.
However, online banks often lead the charge with higher APYs, requiring low minimums to open the account and earn the high rate. Many online banks have minimum opening requirements of $100 or less and offer high APYs on all balances.
Closing Thoughts
Take a gander at online banks when on the hunt for a high-yield account. You'll likely notice that online banks have lower minimum balances, don't impose monthly fees, and may pay the same APY on all account balances. In many cases, these savings account rates outshine what you'd earn from a savings account at a brick-and-mortar bank, even with a relationship rate.
Use the national average savings rate as your yardstick. You should have no trouble finding a bank that offers an APY several times higher than the national average. Compare and contrast APYs between online banks and traditional banks to witness the power of higher interest earnings in action. The magic of compounding helps your interest earn interest over time.
(The terms and conditions of APYs are subject to change, and you should verify the current rates and requirements directly with the financial institutions before making a decision.)
- To boost your savings, consider high-yield savings accounts, which offer rates far above the national average of 0.6%.
- In the industry of finance and personal-finance, we survey over 500 banks and credit unions weekly to determine the national averages, including high-yield accounts and some major banks.
- In the field of banking-and-insurance, linking your savings to a checking account can sometimes result in a higher yield at certain banks, known as relationship rates, especially in brick-and-mortar establishments.
- Online banks, on the contrary, often lead in offering higher APYs with low minimum balances, no monthly fees, and sometimes the same APY on all account balances.
- To set a benchmark for your savings account, use the national average APY as a reference and look for banks that exceed it by several times, ensuring you maximize your earnings through the power of compounding.
