If you’re looking to maximize your savings, settling for the average savings account rate may not be the best option. Instead, consider aiming for an annual percentage yield (APY) that is significantly higher than the national average. High-yield savings accounts offer competitive returns with no or low minimum balance requirements, making it easy to grow your savings.
Online banks often have savings interest rates that surpass the national average. The higher the rate, the more interest you can earn on your savings. As of July 1, the national average savings account yield was 0.59 percent APY, according to Bankrate’s survey of institutions.
How Bankrate calculates the national average
Bankrate’s methodology for determining national average savings account rates involves surveying over 500 banks and credit unions weekly. This survey includes institutions that offer high yields and are widely available, as well as some of the largest banks in the nation.
APY comparison
| Financial institution | APY | Minimum opening balance | Learn more |
|---|---|---|---|
| Note: Annual percentage yields (APYs) shown are as of July 3. Bankrate’s editorial team updates this information weekly. APYs may have changed since they were last updated and may vary by region for some products. | |||
| TAB Bank | 5.27% | $0 | Read review |
| UFB Direct | 5.25% | $0 | Read review |
| Bread Financial | 5.15% | $100 | Read review |
| Bask Bank | 5.10% | $0 | Read review |
| LendingClub Bank | 5.00% | $100 | Read review |
| Synchrony Bank | 4.75% | $0 | Read review |
| Marcus by Goldman Sachs | 4.40% | $0 | Read review |
| Capital One | 4.25% | $0 | Read review |
| Discover Bank | 4.25% | $0 | Read review |
| Ally Bank | 4.20% | $0 | Read review |
| TD Bank | 0.02% | $0 | Read review |
| Chase | 0.01% | $0 | Read review |
| U.S. Bank | 0.01% | $25 | Read review |
| Wells Fargo | 0.01% | $25 | Read review |
| Bank of America | 0.01% | $100 | Read review |
Interest rates for linked checking and savings
Some banks offer higher yields when you link your savings account with a checking account, known as relationship rates. Brick-and-mortar banks typically provide this option, like Huntington Bank:
- Standard savings account yield: 0.01% APY
- Savings account yield when paired with a Huntington Perks Checking or Huntington Platinum Perks Checking account: 0.02% APY
To avoid a $25 monthly maintenance fee, the Huntington Platinum Perks Checking account requires a total relationship balance of $25,000.
Online banks are often a better choice for higher APYs due to lower fees and higher interest rates. Most online banks have minimum opening requirements of $100 or less.
| Bank | Checking account/Savings account combo | Standard savings yield | Yield with relationship | Minimum balance to avoid monthly checking account fee |
|---|---|---|---|---|
| Huntington Bank | Huntington Perks Checking or Huntington Platinum Perks Checking/Huntington Relationship Savings | 0.01% APY | 0.02% APY* | Total relationship balance of $25,000 required. |
| Chase | Chase Premier Plus Checking or Chase Sapphire Checking/Chase Premier Savings | 0.01% APY | 0.02% APY** | Average beginning day balance of $15,000 in this account or qualifying investments and deposits.*** |
* With a Huntington Perks Checking account or a Huntington Platinum Perks Checking account.
** Besides linking a Premier Plus and a Chase Sapphire Checking account with a Chase Premier Savings account, you also need to make at least five transactions — that you initiate — with that linked checking account during the monthly statement cycle.
***A linked qualifying first mortgage enrolled in automatic payments can also waive the monthly fee on the Chase Premier Plus Checking account.
Bottom line
When searching for a high-yield account, compare online banks with traditional banks to find the best option for your savings. Online banks often offer lower minimum balances, no monthly fees, and higher APYs across all balances, making them a more attractive choice for maximizing your savings.
Use the national average savings rate as a benchmark and aim for an APY that is significantly higher. By comparing big banks with online banks, you can see the potential for higher interest earnings and the power of compounding over time.