Whether it’s savings, checking, or money market accounts, U.S. interest rates remain stuck in a downtrend.
For example, the Federal Deposit Insurance Corporation’s (FDIC) findings show that the U.S. national average savings account interest rate is at 0.06% in 2021 — a decline of 33% year-over-year (YoY). Similarly, the average checking account interest rate is 0.03% (a drop of 40% YoY), while the average money market interest rate is 0.06% (a decline of 69% YoY).
Deposit Product: | Average Rates 2019: | Average Rates 2020: | Average Rates 2021: |
Savings Accounts | 0.10% | 0.09% | 0.06% |
Checking Accounts | 0.06% | 0.05% | 0.03% |
Money Market Accounts | 0.18% | 0.20% | 0.06% |
National Average Rates:
The U.S. national average savings account interest rate is at 0.06% in 2021. The current rate is 33% lower than in 2020 and 40% lower than in 2019.
The average checking account interest rate is 0.03% — a decline of 40% YoY.
The average money market interest rate is 0.06% — a decline of 69% YoY.
Traditional Banks:
Nine out of the 11 traditional banks in our study offer an average savings account interest rate below the national average of 0.06%.
Capital One (0.35%) offers the highest average savings account interest rate. In contrast, Wells Fargo, Chase Bank, HSBC, US Bank, SunTrust, and Huntington National (0.01%) offer the lowest average savings account interest rate.
Capital One (0.633%) offers the highest average CD interest rate, while Wells Fargo (0.015%) provides the lowest average CD interest rate.
Eight out of the 11 traditional banks in our study offer an average checking account interest rate below the national average of 0.03%.
Capital One (0.10%) has the highest average checking account interest rate, while US Bank (0.005%) has the lowest average checking account interest rate.
Only Capital One (0.07%), Huntington National (0.005%), and PNC Bank (0.003%) have checking account interest rate spreads that are in positive territory.
Online Banks:
The highest-yielding online bank (0.50%) has an average savings rate that’s 15 basis points (0.15%) higher than the highest-yielding traditional bank (0.35%).
Marcus By Goldman Sachs, Barclays Online Savings, Ally Online Savings, and Synchrony High Yield Savings (0.50%) offer the highest average savings rate. In comparison, HSBC Direct Savings (0.15%) provides the lowest average savings rate.
Discover Bank (0.625%) offers the highest average CD rate, while Citizens Access (0.175%) provides the lowest average CD rate.
Online banks offer higher checking account interest rates than traditional banks.
Alliant Credit Union (0.250%) has the highest average checking account interest rate, while HSBC Direct Checking (0.010%) has the lowest average checking account interest rate.
The COVID-19 Effect:
Before the crisis, the national average savings account interest rate was 0.09% in Q4 2019. Since then, the rate has declined to 0.06%. As a result, this means that the national average savings account interest rate has decreased by 33% relative to its pre-COVID 19 value.
Before the crisis, the national average checking account interest rate was 0.05% in Q4 2019. Since then, the rate has declined to 0.03%. As a result, this means that the national average checking account interest rate has decreased by 40% relative to its pre-COVID 19 value.
Before the crisis, the national average money market interest rate was 0.15% in Q4 2019. Since then, the rate has declined to 0.06%. As a result, this means that the national average money market interest rate has decreased by 60% relative to its pre-COVID 19 value.
Suffering from the same affliction, the U.S. national average savings, checking, and money market interest rates have declined materially over the last ~ten years.
Date: | U.S. National Average Savings Account Interest Rate: | U.S. National Average Checking Account Interest Rate: | U.S. National Average Money Market Interest Rate: |
2010:Q1 | 0.21% | 0.13% | 0.32% |
2010:Q2 | 0.20% | 0.12% | 0.30% |
2010:Q3 | 0.19% | 0.11% | 0.27% |
2010:Q4 | 0.17% | 0.10% | 0.24% |
2011:Q1 | 0.16% | 0.10% | 0.22% |
2011:Q2 | 0.15% | 0.09% | 0.21% |
2011:Q3 | 0.13% | 0.08% | 0.19% |
2011:Q4 | 0.12% | 0.08% | 0.16% |
2012:Q1 | 0.10% | 0.07% | 0.14% |
2012:Q2 | 0.10% | 0.06% | 0.13% |
2012:Q3 | 0.09% | 0.06% | 0.12% |
2012:Q4 | 0.08% | 0.05% | 0.12% |
2013:Q1 | 0.07% | 0.05% | 0.11% |
2013:Q2 | 0.06% | 0.05% | 0.10% |
2013:Q3 | 0.06% | 0.04% | 0.09% |
2013:Q4 | 0.06% | 0.04% | 0.09% |
2014:Q1 | 0.06% | 0.04% | 0.08% |
2014:Q2 | 0.06% | 0.04% | 0.08% |
2014:Q3 | 0.06% | 0.04% | 0.08% |
2014:Q4 | 0.06% | 0.04% | 0.08% |
2015:Q1 | 0.06% | 0.04% | 0.08% |
2015:Q2 | 0.06% | 0.04% | 0.08% |
2015:Q3 | 0.06% | 0.04% | 0.08% |
2015:Q4 | 0.06% | 0.04% | 0.08% |
2016:Q1 | 0.06% | 0.04% | 0.08% |
2016:Q2 | 0.06% | 0.04% | 0.08% |
2016:Q3 | 0.06% | 0.04% | 0.08% |
2016:Q4 | 0.06% | 0.04% | 0.08% |
2017:Q1 | 0.06% | 0.04% | 0.08% |
2017:Q2 | 0.06% | 0.04% | 0.08% |
2017:Q3 | 0.06% | 0.04% | 0.08% |
2017:Q4 | 0.06% | 0.04% | 0.09% |
2018:Q1 | 0.07% | 0.04% | 0.10% |
2018:Q2 | 0.07% | 0.05% | 0.11% |
2018:Q3 | 0.08% | 0.05% | 0.13% |
2018:Q4 | 0.09% | 0.06% | 0.16% |
2019:Q1 | 0.09% | 0.06% | 0.17% |
2019:Q2 | 0.10% | 0.06% | 0.19% |
2019:Q3 | 0.09% | 0.06% | 0.18% |
2019:Q4 | 0.09% | 0.05% | 0.15% |
2020:Q1 | 0.09% | 0.06% | 0.15% |
2020:Q2 | 0.06% | 0.04% | 0.09% |
2020:Q3 | 0.06% | 0.04% | 0.08% |
2020:Q4 | 0.05% | 0.04% | 0.07% |
2021:Q1 | 0.05% | 0.04% | 0.06% |
2021:Q2 | 0.06% | 0.03% | 0.06% |
2021:Q3 | 0.06% | 0.03% | 0.06% |
Pre-COVID 19:
During the 2008 global financial crisis (GFC), the U.S. Federal Reserve (Fed) reduced interest rates to stimulate economic growth and help Americans climb out of the worst recession in modern U.S. history. Thus, as you can see, in 2009, the national average savings rate took a steep dive before flattening out from 2013 to 2017.
Likewise, the national average money market interest rate exhibited a similar trend. And although the decline was much more significant in magnitude, money market interest rates finally stabilized in 2014 before beginning their upward ascension in 2017.
As for checking accounts, after displaying a continuous decline from the end of 2009 until the end of 2017, the national average checking account interest rate began to show signs of life in late 2018.
However, it’s worth noting, while the Effective Federal Funds Rate increased by 2.01% from late 2016 until mid-2019, the average interest rates for savings accounts, money market instruments, and checking accounts increased by 0.04%, 0.02%, and 0.11% during that same timeframe.
During COVID-19:
Once the pandemic struck, it was a death knell for the national average savings, checking, and money market interest rates:
Before the crisis, the national average savings account interest rate was 0.09% in Q4 2019. Since then, the rate has declined to 0.06%. As a result, this means that the national average savings account interest rate has decreased by 33% relative to its pre-COVID 19 value.
Before the crisis, the national average checking account interest rate was 0.05% in Q4 2019. Since then, the rate has declined to 0.03%. As a result, this means that the national average checking account interest rate has decreased by 40% relative to its pre-COVID 19 value.
Before the crisis, the national average money market interest rate was 0.15% in Q4 2019. Since then, the rate has declined to 0.06%. As a result, this means that the national average money market interest rate has decreased by 60% relative to its pre-COVID 19 value.
To provide the most comprehensive study, we compared the savings and checking account interest rates of 11 of the largest traditional banks in the U.S. For context, if an institution has two savings accounts that pay 0.03% and 0.05% interest, then the average will be (0.03% + 0.05%) / 2 = 0.04%.
To that point, while the largest U.S. banks offer familiarity and stability, their average savings account interest rates are also near the lowest in the country. For example, nine out of the 11 traditional banks in our study offer an average savings account interest rate below the national average of 0.06%.
Institution: | Average Savings Account Interest Rate: | % Above/Below the National Average: | Average CD Interest Rate: |
Capital One | 0.350% | 0.290% | 0.633% |
Citibank | 0.060% | 0.000% | 0.090% |
TD Bank | 0.033% | -0.027% | 0.050% |
Bank of America | 0.030% | -0.030% | 0.040% |
PNC Bank | 0.020% | -0.040% | 0.033% |
Wells Fargo | 0.010% | -0.050% | 0.015% |
Chase Bank | 0.010% | -0.050% | 0.020% |
HSBC | 0.010% | -0.050% | 0.270% |
US Bank | 0.010% | -0.050% | 0.425% |
SunTrust | 0.010% | -0.050% | 0.050% |
Huntington National | 0.010% | -0.050% | 0.020% |
With a similar trend present, eight out of the 11 institutions in our study offer an average checking account interest rate below the national average of 0.03%.
Institution: | Average Checking Account Interest Rate: | % Above/Below the National Average: |
Capital One | 0.100% | 0.070% |
Huntington National | 0.035% | 0.005% |
PNC Bank | 0.033% | 0.003% |
Citibank | 0.020% | -0.010% |
Bank of America | 0.010% | -0.020% |
Wells Fargo | 0.010% | -0.020% |
Chase Bank | 0.010% | -0.020% |
HSBC | 0.010% | -0.020% |
SunTrust | 0.010% | -0.020% |
TD Bank | 0.010% | -0.020% |
US Bank | 0.005% | -0.025% |
All Traditional Banks are FDIC Insured.
Outperforming traditional banks, all eight online banks in our study offer an average savings account interest rate above the national average of 0.06%.
In our opinion, Marcus By Goldman Sachs is the best option. As evidence, there are no fees and no minimum deposit requirements to open a Marcus By Goldman Sachs high-yield savings account.
In addition, the company requires a $500 minimum deposit for CDs, while Discover Bank requires a $2,500 minimum deposit. What’s more, both Marcus By Goldman Sachs and Discover Bank pay 0.55% interest on 12-month CDs and 1% interest on 5-year CDs. However, the former pays 0.70% interest on 24-month CDs, while the latter pays 0.65% interest on 24-month CDs. As a result, Marcus By Goldman Sachs is the most attractive option.
Bank: | Average Savings Rate: | % Above/Below the National Average: | Average Certificate of Deposit (CD) Rate: |
Marcus By Goldman Sachs | 0.500% | 0.4400% | 0.590% |
Barclays Online Savings | 0.500% | 0.4400% | 0.480% |
Ally Online Savings | 0.500% | 0.4400% | 0.460% |
Synchrony High Yield Savings | 0.500% | 0.4400% | 0.570% |
American Express Bank | 0.400% | 0.3400% | 0.360% |
Discover Bank | 0.400% | 0.3400% | 0.625% |
Citizens Access | 0.400% | 0.3400% | 0.175% |
HSBC Direct Savings | 0.150% | 0.0900% | 0.270% |
Are online banks and their high-yield savings accounts a safe place to deposit your money?
The short answer is yes. Goldman Sachs Bank USA backs Marcus By Goldman Sachs. Moreover, the former is a member of the FDIC. And the latter’s savings account and CDs are insured for up to $250,000 per account. In addition, setting up more than one account can increase your insurable deposit limit to more than $250,000.
The bottom line? As long as your institution is FDIC insured, your money should be safe.
Review The Best High-Yield Online Savings Accounts of October 2024
As for checking accounts, seven out of the eight online banks that we analyzed have average checking account interest rates that exceed 0.03%.
In our opinion, Alliant Credit Union offers Americans the best bang for their buck. To explain, online banks have eligibility requirements that rival traditional banks. And Alliant Credit Union is no different. However, there are no monthly maintenance or overdraft fees, and you can open an account with as little as $1.
As such, there are only two requirements to earn 0.25% on your checking account balance at Alliant Credit Union:
In contrast, Ally Bank pays 0.10% interest on checking account balances less than $15,000 and 0.25% interest on checking account balances of $15,000 or more. As a result, you need a large account to match the interest rate offered by Alliant Credit Union.
Likewise, LendingClub Banking pays 0% interest on checking account balances that range from $0.01 to $2,499.99, pays 0.10% interest on checking account balances that range from $2,500 to $99,999.99, and yields 0.15% interest on checking account balances of $100,000 or more. As a result, these balance minimums make the account much less attractive.
Institution: | Average Checking Account Interest Rate: | % Above/Below the National Average: |
Alliant Credit Union | 0.250% | 0.220% |
Ally Bank | 0.175% | 0.145% |
LendingClub Banking | 0.125% | 0.095% |
TIAA Bank | 0.100% | 0.070% |
Axos Bank | 0.100% | 0.070% |
Charles Schwab Bank | 0.030% | 0.000% |
HSBC Direct Checking | 0.010% | -0.020% |
* Checking Accounts that don’t pay interest were not included in the table.
ElitePersonalFinance always has up-to-date studies.
Our goal is to consolidate the information and present the findings in a way that’s easy to understand by parsing through the latest data from reliable sources. If you enjoyed the study, please provide your feedback. Moreover, if there is anything that we missed or anything that you believe needs updating, please let us know, and we will respond promptly.
With U.S. savings, checking, and money market interest rates stuck in their lull, day-to-day banking products do little to compound Americans’ wealth. However, online banks are the cleanest shirts in the banking basket of dirty laundry. With savings rates that exceed the national average, their accounts are effective vehicles to park short-term cash. However, if you have little use for the funds over a long time horizon, it’s best to find alternative places to invest.
Average Savings Account Interest Rates of October 2024
Average Checking Account Interest Rates of October 2024
Best High-Yield Online Savings Accounts of October 2024
Traditional Banks:
Bank of America Average Savings, CD, and Checking Account Rates
Wells Fargo Average Savings, CD, and Checking Account Rates
Citibank Average Savings, CD, and Checking Account Rates
Chase Bank Average Savings, CD, and Checking Account Rates
HSBC Average Savings, CD, and Checking Account Rates
US Bank Average Savings, CD, and Checking Account Rates
SunTrust Average Savings, CD, and Checking Account Rates
PNC Bank Average Savings, CD, and Checking Account Rates
Huntington National Average Savings, CD, and Checking Account Rates
TD Bank Average Savings, CD, and Checking Account Rates
Capital One Average Savings, CD, and Checking Account Rates
Online Banks:
Marcus by Goldman Sachs Average Savings and CD Rates
Barclays Online Savings Average Savings and CD Rates
HSBC Direct Savings Average Savings Rates
American Express Bank Average Savings and CD Rates
Discover Bank Average Savings and CD Rates
Citizens Access Average Savings and CD Rates
Synchrony High Yield Savings Average Savings and CD Rates
Ally Bank Average Savings and CD Rates
Ally Bank Average Checking Account Interest Rates
Charles Schwab Bank Average Checking Account Interest Rates
HSBC Direct Checking Average Checking Account Interest Rates
TIAA Bank Average Checking Account Interest Rates
LendingClub Banking Average Checking Account Interest Rates