Average Bank Interest Rates 2021

ElitePersonalFinance
Last Update: April 21, 2021 Banking Make Money Save Money Studies
View All Studies

ElitePersonalFinance analyzed all big banks’ interest rates in the US. Unfortunately, because of the crisis, the results were now what we all wanted. We have found a significant decrease in all banks’ products. The decrease started in March 2020 and continues to drop in April 2020. From then on, the rates remained relatively low, with no significant fluctuation.

Heads up! Things should become better. All of us want that!

Now let’s look at what our latest 2021 analysis shows:

Deposit Product: Average Rates 2019: Average Rates 2020: Average Rates 2021:
Savings Accounts 0.10% 0.09% 0.05%
Checking Accounts 0.06% 0.05% 0.04%
Money Market Accounts 0.18% 0.195% 0.095%

Average Bank Interest Rates 2021: Statistics and Key Findings

National average rates:

The average savings account rate is 0.05%. Before, it was 0.09%, making a decrease of 0.04%.

The average checking account rate is 0.04%. Before, it was 0.05%, making a decrease of 0.01%.

The average money market accounts rate is 0.095%. Before, it was 0.195%, making a decrease of 0.1%.

Traditional banks:

Almost all traditional banks’ savings accounts fall below the national average. Capital One is the leader, having an interest rate of 0.40%. Citibank and HSBC are the only ones that go slightly above the national average.

All traditional banks’ checking accounts remain under the national average and are very low, from 0.01% to 0.03%.

CD rates have significantly been affected by the COVID. The leader is Capital One, with a rate of 0.30%.

Online banks:

All online banks’ savings and CD rates are over the national average.

Synchrony High Yield Savings has the highest savings rate of 0.60%.

Synchrony High Yield Savings and Ally Online Savings has the highest CD rates of 0.70%.

COVID update:

Almost all accounts have significantly been affected by the COVID. The average drop after the crisis on almost all accounts roughly is about 3 times. Online banks and the highest paying CDs were among the most affected. Traditional banks still had a drop, but their average wasn’t high enough before the crisis.

Average Bank Interest Rates 2021: Charts, Graph, Analysis

Historical National Average Bank Interest Rates in America

Year: Savings Accounts: Checking Accounts: Money Market Accounts:
2009 0.20% 0.13% 0.34%
2010 0.17% 0.10% 0.23%
2011 0.11% 0.07% 0.15%
2012 0.07% 0.05% 0.11%
2013 0.06% 0.04% 0.09%
2014 0.06% 0.04% 0.08%
2015 0.06% 0.04% 0.08%
2016 0.06% 0.04% 0.08%
2017 0.06% 0.04% 0.09%
2018 0.09% 0.06% 0.17%
2019 0.10% 0.06% 0.18%
2020 0.09% 0.05% 0.195%
2021 0.05% 0.04% 0.095%

Before COVID:

To climb out of the worst recession in modern US history, Federal Reserve officials used lower interest rates to pump liquidity into the economy and stimulate economic growth. As you can see, in 2009, national average savings rates took a steep dive before flattening out from 2013 – 2017.

Money market instruments exhibited a similar trend.

Although declines were much larger in magnitude, money market interest rates finally stabilized in 2014 before beginning an upward ascension in 2017.

For checking accounts, after displaying a continuous decline from the end of 2009 until the end of 2017, national average interest rates began to show signs of life in late 2018.

However, it’s worth noting, while the Effective Federal Funds Rate has increased by nearly 1% since the start of 2018, average interest rates for savings accounts, money market instruments, and checking accounts have been relegated to a pedestrian 0.01%, 0.01% and 0.02% spread increase over the same time period.

After COVID:

After the crisis, we see a serious decrease in all products. The unsecured times made this trend.

  • Savings Accounts:

Before the crisis, the average national was 0.09%. After the crisis, it drops to 0.05%. This means a total decrease of 0.04%. This also means a relative decrease of 44%.

  • Checking Accounts:

Before the crisis, the average national was 0.05%. After the crisis, it drops to 0.04%. This means a total decrease of 0.01%. This also means a relative decrease of 20%.

  • Savings Accounts:

Before the crisis, the average national was 0.195%. After the crisis, it drops to 0.095%. This means a total decrease of 0.1%. This also means a relative decrease of 51%.

Average Bank Interest Rates of Traditional US Banks 2021

ElitePersonalFinance analyzed all big banks in the US. We analyzed all of their products and got their average values.

For example, if a bank offers a saving product with 0.03% and another one with 0.05%, then the average, in this case, will be (0.03% + 0,05%) / 2 = 0.04%.

Here is what we found:

Bank: Average Savings Rates: Average Checking Rates: Average CD Rates:
Bank of America 0.03% 0.01% 0.04%
Wells Fargo 0.01% 0.01% 0.01%
Citibank 0.08% 0.03% 0.12%
Chase 0.01% 0.01% 0.03%
HSBC 0.06% 0.01% 0.29%
US Bank 0.01% 0.01% 0.01%
SunTrust 0.01% 0.01% 0.05%
PNC Bank 0.01% 0.01% 0.04%
Huntington National 0.02% 0.01% 0.15%
TD Bank 0.03% 0.01% 0.10%
Capital One 0.40% 0.01% 0.30%

All Traditional Banks are FDIC Insured.

As a general rule, the larger the bank is, the less money you should expect. Almost all big banks’ savings accounts fall below the national average. Capital One looks like a decent option, with a significant rate over the national average of 0.40%. We also have to mention Citibank and HSBC, they show numbers over the national average, although with only a few points above.

Conversely, certificates of deposit (CDs) offer some relief. Our analysis shows that traditional bank CD rates range from 0.01% to 0.30%. However,  the decrease after that crisis is obvious. This made these products less lucrative. With a CD rate of 0.30%, Capital One is again, the leader.

Checking rates are very low. Almost all banks stay at 0.01%. Only Citibank average at 0.03%.

Average Bank Interest Rates of Online US Banks 2021

Bank: Average Savings Rates: Average Certificate of Deposit (CD) Rates:
Marcus By Goldman Sachs 0.50% 0.57%
Barclays Online Savings 0.45% 0.25%
HSBC Direct Savings 0.15% 0.36%
American Express Bank 0.50% 0.36%
Discover Bank 0.50% 0.55%
Citizens Access 0.40% 0.16%
Ally Online Savings 0.50% 0.70%
Synchrony High Yield Savings 0.60% 0.70%

Online banks’ rates are significantly higher than traditional banks’. Although their rates were significantly affected by the crisis, some might interest you. We see savings rates of up to 0.60% and CD rates of up to 0.70%. If we compare these values to the previous period, we will see a decrease of about 3 times before the crisis.

All online banks’ savings and CD rates are over the national average.

Synchrony High Yield Savings has the highest savings rate of 0.60%.

Synchrony High Yield Savings and Ally Online Savings has the highest CD rates of 0.70%.

Are online banks and their high-yield accounts a safe place for your money?

Safety should be our top priority!

Many people believe that bigger and well-known institutions are always safer. There are also people who believe that the highest rates make higher risk. Technically this could be true to some extent. But this is not always the case. As long as the institution is FDIC insured, your money should be safe. FDIC accounts are guaranteed up to $250,000 per depositor, per institution, per ownership category.

Review The Best High-Yield Online Savings Accounts of April 2021

A little tip from us! Don’t put all of your money in one place, even if you feel that it is the safest place, even if the account is high paying, and even if it is insured. Speed your money in different places!

Now for checking accounts.

Many of the online banks mentioned above don’t have checking accounts, pay nothing, or close to 0. That’s why we compiled data from institutions where we have found checking accounts available. With average rates ranging from 0.01% to 1.25%, expectedly, the offers are much lower than the average savings and CD rates.

Here is what our analysis show:

Institution: Average Checking Account Interest Rates:
Ally Bank 0.18%
Charles Schwab Bank 0.03%
HSBC Direct Checking 0.01%
TIAA Bank 0.40%
Radius Bank 0.13%
Axos Bank 1.25%
Alliant High-Rate Checking 0.25%

* Checking Accounts that don’t pay interest were not included in the table.

The leader is Axos Bank.

Offering 1.25% within its Rewards Checking Account, they position them well-above their competitors. However, to qualify for the full 1.25%, you need to meet three requirements. Each of them is 0.4166%.

  • Receive monthly direct deposits totaling $1,000 or more.
  • Use your Axos Visa® Debit Card for a total of 10 transactions per month (min $3 per transaction).
  • Use your Axos Visa® Debit Card 5 more times, a total of 15 transactions per month (min $3 per transaction).

Banks with a significantly higher value than the average national are: TIAA and Alliant.

How We Conducted The Study

ElitePersonalFinance provides 100% correct and always up to date studies.

To present the most accurate information, we went directly to the source. First, we analyzed national statistics from the Federal Deposit Insurance Corporation (FDIC). Next, we combed through each bank’s official website, crunched the numbers, and consolidated the findings to present the most accurate study of average savings, money market, and checking account interest rates within the United States.

Conclusion

There is a significant decrease in all products’ rates. We live in unsecured times. Don’t panic. Things should become better. All of us want that. Rates should start rising.

Be very careful where you save your money. Carefully check all changes regularly. Spread your money in many different places. Don’t repay only on one place only because it has the highest rate.

Pay attention to inflation. Most accounts actually will pay less than it.

Read Also

Average Savings Account Interest Rates 2021

Average Checking Account Interest Rates 2021

Best High-Yield Online Savings Accounts of April 2021

Sources

Current US National Average Savings, Money Market, and Checking Account Interest Rates

Historical US National Average Savings, Money Market Checking Account Interest Rates

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

Radius Bank Average Checking Account Interest Rates

Axos Bank Average Checking Account Interest Rates

Aliant High-Rate Checking Account Interest Rates

MEET THE AUTHOR

ElitePersonalFinance

Recommended Articles

Debt

Average Personal Loan Debt Amount in America 2021

EPF February 24, 2021

View All Studies [toc] How much is the average personal loan amount in America in 2021? How the Covid affected American loans at all? Our credit card study found that the American credit card debt rise is finally over. Now, let's...

Debt

Best Mortgage Loan Rates 2021

EPF July 8, 2020

People can save thousands on the mortgage in 2021. Here are the average mortgage rates: [sc name="loans_shop_around"]

AS SEEN ON