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- According to the FDIC, the average savings account earns 0.42% APY, and CDs earn 0.23% to 1.83% APY.
- Online banks tend to offer higher interest rates than the average savings account.
- Keep in mind rates vary by bank and may fluctuate over time.
The Federal Deposit Insurance Corporation keeps track of interest rates offered by banks for different types of accounts.
Here are the average bank interest rates of savings accounts, CDs, money market accounts, and interest-earning checking accounts.
Current state of interest rates
The inflation rate has fallen significantly since 2022 but still hasn't reached the Fed's target of 2%. That means interest rate cuts are likely on the horizon, though it's difficult to forecast when and how much they will drop.
For now, interest rates on deposit accounts remain high. That's good news for savers, who can find several savings accounts paying a generous 5% APY (Annual Percentage Yield) or more.
Average interest rates
Savings accounts
According to data from the FDIC, the average savings account interest rate is 0.42% APY but most online savings accounts pay far more than traditional bank savings accounts.
High-yield savings accounts, which work the same as a typical savings account but earn more interest, are a great way to make your money work harder.
Here are a few popular online banks that offer high-yield savings accounts and their interest rates:
| Account Name | APYs (Annual Percentage Yields) are accurate as of 12/31/2024 | Minimum Account Opening Balance |
| LendingClub LevelUp Savings Account | up to 4.75%* | $0 |
| BrioDirect High-Yield Savings Account | 4.75% | $5,000 |
| Barclays Tiered Savings | up to 4.65%** | $0 |
| Western Alliance Bank High-Yield Savings Premier | 4.46%**** | $500 |
| CIT Bank Platinum Savings | 4.35% (with $5,000 minimum balance)*** | $100 |
| Bread Savings High-Yield Savings Account | 4.50% | $100 |
Checking accounts
Not all checking accounts earn interest, but there are a few accounts out there that offer this perk. On average, interest-bearing checking accounts earn 0.07% APY.
Many banks offer higher rates for larger balances or qualifying activities, such as a certain number of monthly debit card transactions or recurring deposits.
Here are rates offered by a few popular interest checking accounts:
| Bank | Interest rate (Annual percentage yield) |
| Ally Spending Account | 0.10% to 0.25% |
| CIT Bank eChecking Account | 0.10% to 0.25% |
| Quontic High Interest Checking Account | 0.01% to 1.10% |
| USAA Classic Checking | 0.01% on balances of $1,000 or more |
| Axos Bank Rewards Checking | up to 3.30% |
Money market accounts
Money market accounts may earn more than savings accounts, depending on the financial institution. However, money market accounts function more like checking accounts; many come with ATM access, debit cards, and checks.
The average money market account rate is 0.66% APY, according to the FDIC.
Here are a few popular MMA rates today:
| Account Name | APYs (Annual Percentage Yields) are accurate as of 12/31/2024 | Minimum Account Opening Balance |
| UFB Portfolio Money Market | 4.01% | $0 |
| Quontic Money Market Account | 4.75% | $100 |
| Quontic Money Market Account | 4.75% | $100 |
CDs
Certificates of deposit, or CDs, are a good way to keep money growing without risk. Your money is locked away for a certain amount of time, generally ranging from one month to five years.
While taking money out before the term ends comes with an early withdrawal penalty, these accounts have the benefit of higher interest rates than typical savings accounts or money market accounts, on average.
CD rates depend on economic conditions, but tend to be higher for longer terms. A big benefit of CDs is that once your money is deposited, the interest rate cannot change, unlike a savings or money market account.
Here's the average bank interest rate for a $10,000 CD for different term lengths, according to data from the FDIC:
| Product | Average interest rate |
| CD - 1 month | 0.22% |
| CD - 3 months | 1.65% |
| CD - 6 months | 1.57% |
| CD - 1 year | 1.81% |
| CD - 2 years | 1.54% |
| CD - 3 years | 1.41% |
| CD - 4 years | 1.32% |
| CD - 5 years | 1.39% |
Like savings and money market accounts, it's possible to find much higher interest rates than average for CDs at online banks.
Here are current rates on several popular CDs:
| Account Name | APYs (Annual Percentage Yields) are accurate as of 12/31/2024 | Minimum Account Opening Balance |
| Ponce Bank 3 Month CD, powered by Raisin | 4.52% | $1 |
| Barclays 6 Month Online CD | 4.00% | $0 |
| Discover 1 Year CD | 4.00% | $0 |
| Sallie Mae 14 Month No-Penalty CD | 3.95% | $1 |
| Discover 18 Month CD | 3.80% | $0 |
| Bread Savings 2 Year High-Yield CD | 4.00% | $1,500 |
| mph.bank 3 Year CD | 4.38% | $1 |
How interest rates affect your money
High interest rates are great for savers, but they can be a challenge for borrowers. Taking out a mortgage to buy a house, for example, while interest rates are elevated means you're stuck with a higher monthly payment. Alternatively, you could wait for rates to come down and keep your cash growing risk-free in a savings account or money market account.
Factors influencing bank account interest rates
Federal reserve policies
The Fed determines the interest rate banks charge each other to lend money, which in turn determines the rate banks charge their customers. When the Fed cuts its target rate, banks will typically do the same, lowering rates on both deposit accounts and loan products.
Rate changes occur at Fed meetings involving the Federal Open Market Committee, which occur at least eight times per year.
Inflation rates
The Fed makes its decisions based, in part, on inflation. When the inflation rate exceeds the Fed's 2% annual target, it may decide to raise interest rates to discourage spending, and thus, borrowing. Conversely, when inflation is too low, the Fed may lower rates to stimulate the economy.
Bank-specific factors
The average bank interest rate varies by the type of account you're considering. Depending on what account you're looking to open, there might be other factors that play into the interest rate you'll see, like the account's daily balance or opening deposit.
It's also worth noting that interest rates vary by bank. You might find that the best online banks have higher interest rates on savings accounts than the bank with a branch down the street.
How to find the best bank interest rates
Comparing accounts is important to get the best interest rate, but making sure that the account you're considering doesn't have any common bank fees that could eat into your earnings is equally important.
Interest rates for both deposit accounts, like checking and savings, and loans are constantly in flux. They can change at any moment, and the account with the highest interest rate today may not be the one with the highest interest rate next month. Do a quick search every few months to make sure your interest rate is still competitive.
Bank account interest rate FAQs
Rates vary based on the economic climate, but generally anything that matches or exceeds the inflation rate is good.
Banks need to have a substantial amount of cash in order to fund loan products, and part of that comes from customer savings accounts. To encourage customers to save, financial institutions offer higher interest rates.
Banks typically don't budge on deposit account interest rates, but customers with very high balances or substantial assets at the institution may have luck negotiating.
Online banks reduce their costs by not operating physical branch locations. In turn, they are able to offer higher rates on checking and savings accounts to draw in customers.
Consider the cause of the interest rate change. There are several factors that determine a bank's interest rate on savings products, such as high-yield accounts and CDs, including decisions by the Federal Reserve, the U.S.' banking authority. If the Fed cuts its target federal funds rate, then most banks will follow suit, which could make it hard to find an account paying a rate comparable to your previous rate.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
*Earn 4.75% APY when you deposit at least $250 per month, earn 3.75% standard APY if minimum isn't met.
**Accounts with $250,000 or less will earn 4.35% APY, accounts with over $250,000 will earn 4.65% APY . Rate are determined by balance tiers and amount deposited.
***0.25% APY on balances under $5,000. Rates as of 12/20/2024. CIT Bank is a division of First-Citizens Bank & Trust Company, a member of the Federal Deposit Insurance Corporation (FDIC), which means your deposit accounts are insured up to $250,000 per depositor, for each account ownership category. Deposits held under the names First Citizens Bank & Trust Company and CIT Bank are not separately insured but must be combined for purposes of determining whether a depositor has exceeded the federal insurance deposit limit.
****The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank's discretion. Refer to product's website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
*****SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
