Average Interest Rates for Deposit Accounts – NerdWallet (2023)

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The nationwide median interest rate on US deposit accounts is on an upward trend. However, there is a wide range of interest rates among financial institutions. Some offer returns many times above average, while others are well below average. If you as a consumer deposit your money into an account with an income above the basic income, your balance can grow faster than in a regular account.

Here are the current average interest rates on deposit accounts at banks and credit unions across the country, according to the FDIC.

Savings accounts, national average savings rate:0,40 %

National average savings rate for savings accounts0,40 %, according to the FDIC, but there are savings accounts that offer ten times the state average. On the other hand, there are also savings accounts, notably those of the major national banks, which yield only 0.01%.

Why savings interest is important.if you want to save moneyemergency fundorFund for rainy days, it helps to deposit moneyfederal insuranceEarn as many accounts as possible. Let's say you have $5,000 and deposit it into an account that yields 0.01% per year. After a year, you only earn $1 in interest, leaving you with a total of $5,001 in savings at the end of the year.

However, if you deposit the same $5,000 into an account with a 4% APR, you'll earn $204 in interest a year later, for a total of $5,204. You can use NerdWalletsCompound Interest CalculatorCalculate further savings opportunities. (skipLearn the difference between interest rates and APY. )

Savings APY examples for specific institutions

  • Citizens, Citizens Access®-Ersparnisse:4,50 %.

  • Bank, Bankzins Savings account:4,75 %.

  • Chase Bank, Chase Savings℠:0.01% effective February 10, 2023. Prices are variable and subject to change.

» Wondering how much money you can save? Read NerdWallet's guide on how much you should save

Historical country rates

The table below shows historical national interest rates on savings accounts, interest checks, certificates of deposit, and money market accounts for the last 13 years.

Current account interest, national average rate:0,07 %

The national average interest rate for a US checking account is0,07 %, according to the FDIC. SomeChecking account with the highest interest rateThe income is well above the national average. There are also accounts that offer high cashback rewards for debit card purchases, however these accounts do not take into account the average price.

Why Check Rates Matter.If you want to earn interest on all the money in the bank and not just the money in your savings account, consider opening a checking account with an interest rate above the national average. They don't reach the same APY levels as a high-yield savings account, but they still earn interest. Because it's important to have enough money in your checking account so this doesn't happen to youoverdraftYou want to make sure the money keeps working for you.

Note, however, that some interest-bearing checking accounts require you to overcome some hurdles to get the most interest on the account, such as: For example, signing up for e-statements, spending a minimum monthly amount on your debit card, or directly depositing a certain amount each month. Please ensure you are ready to meet these requirements before registering for an account.

» Would you like to save even more? Here are some of NerdWallet's best money-saving tips

Examples of institutional interest rate reviews (APY).

  • Hope Credit Union, HOPE Reward Check:3,01 %.

  • sophie, SoFi check and save:1,20 %.

Show SoFi

SoFi members who make direct deposits earn up to 4.20% Annualized Return (APY) on savings balances (including vaults) and 1.20% APY on checking balances. There is no minimum deposit required to qualify for a 4.20% APY savings. Non-direct deposit members receive 1.20% APY on all checking and savings balances (including vaults). Interest rates are variable and may change at any time. These rates are valid until April 24, 2023. For more information, see http://www.sofi.com/legal/banking-rate-sheet

" Continue reading About checking and savings accounts

Certificate of Deposit, National Average Interest Rate:1,59 %one year CD

  • One year CD:1,59 %.

  • Three-year CD:1,36 %.

  • Five Year CD:1,37 %.

The national average price for a CD is1,59 %For one-year CDs:1,36 %three-year CD and1,37 %Five Year CD. Included in these numbers are interest rates on stocks, which is what credit unions call these types of deposits. The FDIC lists rates for eight CD terms ranging from one month to five years, but not all banks and credit unions offer every term.

Why CD prices matter. DiscountTraditionally, deposit accounts have had the highest interest rates, but also the greatest restrictions on accessing funds. CDs require you to deposit a fixed amount up front for a set period of time. Usually you cannot add or withdraw any more money after the first deposit. Withdrawing funds before the term expires often results in penalties of several months or even years of interest. For more funding think about itHigh Interest Savings Accountor interest check.

" Learn more Approximately how much it costs to insert a CD

Online-focused banks and credit unions tend to do thisHighest CD rate, which can be many times higher than the average CD rate. use oneCD calculatorto determine the full return you can achieve. Because the CD rate is locked in once the CD is opened, one way to hedge against losses from higher interest rates in the near future is to use itCD ladder: Open multiple CDs with different lifespans at the same time, and open a new long-term CD each time a CD expires.

» Would you like to compare CDs with savings? Read the introduction on NerdWallet

Example CD-APYs for selected institutions


1 year CD

3 year CD

5 year CD

Popular direct salesdeposit receipt

5,10 %

4,55 %

4,50 %

save breaddeposit receipt

Bread Savings Disclosure

All APYs for bread savings are correct as of 4/27/23. APY is subject to change without notice. Offer applies to personal accounts only. Expenses can reduce income. A minimum deposit of $1,500 is required to open a CD, which must be deposited in a single transaction. A fine will be imposed if CDs are returned prematurely. When the term expires, your CD is automatically renewed and receives the current base price.

5,20 %

4,50 %

4,25 %

Money Market Accounts, National Average Saving Rate:0,59 %

The FDIC national average savings rate for a money market account (sometime called a money market deposit account) is0,59 %.Note: A money market account is a type of savings account, but whenComparing an MMA to a regular savings accountA key difference is that MMAs can sometimes write multiple checks or purchase multiple debit cards each month.

Money market accounts versus other account types.Like regular savings accounts, MMA deposit accounts have a range of APRs. Some have an annual return of just 0.01%, while others have posted significantly higher returns -- around 4%. A money market account with a competitive interest rate can often yield higher returns than a checking account and can be comparable to some of the best high-yield savings accounts. However, since some have checking and debit card functionality, they also give you easier access to your money than CDs and savings accounts.

Model money market account APY for selected institutions

  • Sallie May Banks, money market account:4,15 %.

  • sah Bank, Cornerstone Money Market Savings Account:4,85 %.

" Explore more. Understand money market accounts versus CDs

The difference between interest rate and APY

The interest rate is the amount your account earns, expressed as a percentage. Interest earned on an account also accrues interest over time. This is called compound interest. ManyZineszinWhat an account earns in a year isAnnual return, or APY. It is also expressed as a percentage.

The difference between interest rates and APY is that interest rates only calculate interest on the original balance, while APY represents the interest earned on the original balance plus compound interest for one year.

Rate vs. APY example

  • Let's say you have $10,000 in the bank at an interest rate of 4.17%, payable in one year, with no compounding. The amount of interest you earn is $417 ($10,000 x 4.17% = $417).

  • Instead of waiting a year, we will credit you with the interest earned pro rata after one month. That means the total bank balance is just over $10,000.

  • After the next month, the bank deposits another part of the interest. In this case, the interest earned in the previous month increases and is therefore also subject to interest.

  • If interest continues to increase monthly at the same rate, the account will actually yield $425 at the end of the year. This means that compound interest's APR is 4.25% ($10,000 x 4.25% = $425). You can useSparrechnerCalculate balances and try other scenarios with daily, monthly and yearly compounding.

  • So in this example, interest is calculated monthly using an interest rate of 4.17% and an annual percentage rate of 4.25%.

When comparing accounts between financial institutions, it is usually best to use the quoted APY instead of the interest rates, since the APY accounts for compound interest.

How the FDIC calculates the federal interest rate

The FDIC calculates interest rates for each country using average interest rates on deposit accounts from insured banks and credit unions when data is available. The averages are weighted according to each institution's share of domestic deposits or market shares, so that larger institutions – whether brick-and-mortar or fully online – are more representative of the national average interest rate than smaller institutions.

Current account interest rates for savings and interest accounts are based on a $2,500 balance, while interest rates for CD and money market deposit accounts are based on the average interest rate for $10,000 and $100,000 balances.

Show more details

The current FDIC calculation, effective April 2021, includes credit unions and Internet-based institutions. Previously, national interest rates were based on bank branch-weighted averages, which meant that brick-and-mortar banks were over-represented. Due to the lack of data, the FDIC does not consider accounts with special features, such as B. Bonus check or cash bonus accounts.

Depending on your needs, the right place to deposit your deposit could be a savings account, an interest account, a CD account, an MMA account, or a combination of these accounts. Regardless of where you deposit your money, it's important to keep an eye on the account's interest rate. This is an important factor that will help you increase your bank balance and achieve your financial goals.

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