Average Checking Account Interest Rates of June 2024

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Last Update: September 25, 2023 Banking Make Money Save Money Studies
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With the coronavirus pandemic putting downward pressure on U.S. interest rates, America’s average checking account interest rate has fallen to an all-time low of 0.03% in 2021. Moreover, the rate has declined by 40% from where it was in 2020 and by 50% from where it was in 2019.

The Federal Deposit Insurance Corporation’s (FDIC) findings show that day-to-day banking accounts accrue little interest. And with inflation rising materially in 2021, it’s become even more challenging for U.S. households to keep pace with the pricing pressures.

Deposit Product:Average Interest Rate 2019:Average Interest Rate 2020:Average Interest Rate 2021:
Checking Accounts0.06%0.05%0.03%

 

Average Checking Account Interest Rates of June 2024: Statistics and Key Findings

National Average Checking Account Interest Rate:

America’s average checking account interest rate has fallen to an all-time low of 0.03% in 2021.

America’s average checking account interest rate has declined by 40% from where it was in 2020 and by 50% from where it was in 2019.

Historical National Average Checking Account Interest Rate:

America’s average checking account interest rate has declined by 77% since the beginning of 2010.

Traditional Banks:

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.

Eight out of the 11 institutions that we analyzed have average checking account interest rates below the national average of 0.03%.

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:

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.

Alliant Credit Union offers Americans the best bang for their buck.

Checkable Deposits Held by U.S. Households:

The total dollar amount held in U.S. households’ checking accounts hit an all-time high of $3,538.9 billion in the third quarter of 2021.

Americans in the bottom 50% have seen their checkable deposits increase by 141% since Q4 2019.

Americans in the 50% to 90% wealth percentile have seen their checkable deposits increase by 178% since Q4 2019.

Americans in the 90% to 99% wealth percentile have increased their checkable deposits by 237% since Q4 2019.

The top 1% of wealthy Americans have seen their checkable deposits increase by 445% since Q4 2019.

The number of checkable deposits held by the top 1% of wealthy Americans was below the amount held by Americans in the 50% to 90% wealth percentile for 44-straight quarters from Q1 2010 until Q4 2020. However, as of Q2 2021, the top 1% has $42.5 billion more in their checking accounts than Americans in the 50% to 90% wealth percentile.

Average Checking Account Interest Rates of June 2024: Charts, Graph, Analysis

Historical U.S. National Average Checking Account Interest Rate

Unable to regain its past glory, the U.S. national average checking account interest rate has declined by 77% since the beginning of 2010. Moreover, after rising from Q3 2018 until Q1 2020 (from 0.04% to 0.06%), COVID-19 stopped the momentum in its tracks. As a result, the lower-for-longer trend continued, and the U.S. national average checking account interest rate now stands at a record low of 0.03%.

Date:U.S. National Average Checking Account Interest Rate:
2010:Q10.13%
2010:Q20.12%
2010:Q30.11%
2010:Q40.10%
2011:Q10.10%
2011:Q20.09%
2011:Q30.08%
2011:Q40.08%
2012:Q10.07%
2012:Q20.06%
2012:Q30.06%
2012:Q40.05%
2013:Q10.05%
2013:Q20.05%
2013:Q30.04%
2013:Q40.04%
2014:Q10.04%
2014:Q20.04%
2014:Q30.04%
2014:Q40.04%
2015:Q10.04%
2015:Q20.04%
2015:Q30.04%
2015:Q40.04%
2016:Q10.04%
2016:Q20.04%
2016:Q30.04%
2016:Q40.04%
2017:Q10.04%
2017:Q20.04%
2017:Q30.04%
2017:Q40.04%
2018:Q10.04%
2018:Q20.05%
2018:Q30.05%
2018:Q40.06%
2019:Q10.06%
2019:Q20.06%
2019:Q30.06%
2019:Q40.05%
2020:Q10.06%
2020:Q20.04%
2020:Q30.04%
2020:Q40.04%
2021:Q10.04%
2021:Q20.03%
2021:Q30.03%

Average Checking Account Interest Rates at Traditional Banks of June 2024

With traditional banks offering Americans little reprieve in their search for yield, you should avoid their checking accounts. For example, 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.

In addition, many of the largest U.S. institutions set their checking account interest rates below the national average. For example, eight out of the 11 institutions that we analyzed have average checking account interest rates below 0.03%. And 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.

Furthermore, even the institutions that exceed the 0.03% national average often have deposit minimums, transaction requirements, or require you to enroll in other services offered by the bank. As a result, it’s prudent to look elsewhere for a return on your hard-earned capital.

Institution:Average Checking Account Interest Rate:% Above/Below the National Average:
Capital One0.100%0.070%
Huntington National0.035%0.005%
PNC Bank0.033%0.003%
Citibank0.020%-0.010%
Bank of America0.010%-0.020%
Wells Fargo0.010%-0.020%
Chase Bank0.010%-0.020%
HSBC0.010%-0.020%
SunTrust0.010%-0.020%
TD Bank0.010%-0.020%
US Bank0.005%-0.025%

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

Average Checking Account Interest Rates at Online Banks of June 2024

Offering a slight improvement over traditional banks, seven out of the eight online banks that we analyzed have average checking account interest rates that exceed 0.03%.

To that point, 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. Moreover, they also have the highest and lowest checking account interest rate spreads at 0.22% and -0.02%, respectively.

Institution:Average Checking Account Interest Rate:% Above/Below the National Average:
Alliant Credit Union0.250%0.220%
Ally Bank0.175%0.145%
LendingClub Banking0.125%0.095%
TIAA Bank0.100%0.070%
Axos Bank0.100%0.070%
Charles Schwab Bank0.030%0.000%
HSBC Direct Checking0.010%-0.020%

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

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:

  • Opt in to e-statements
  • Make one or more online deposits per month

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.

Total Checkable Deposits Held by U.S. Households

The U.S. Federal Reserve’s (Fed) data shows that the total dollar amount held in U.S. households’ checking accounts hit an all-time high of $3,538.9 billion in the third quarter of 2021. For context, the amount is 928% higher than it was in the first quarter of 2010 and 253% higher than pre-COVID (Q4 2019).

Moreover, if we break down the data by wealth percentile, Americans in the bottom 50% have seen their checkable deposits increase by 141% since Q4 2019. Likewise, Americans in the 50% to 90% wealth percentile have seen their checkable deposits increase by 178% during that same timeframe.

However, the data demonstrates how the U.S. government’s massive spending programs have disproportionately benefited the wealthy. For example, Americans in the 90% to 99% wealth percentile have increased their checkable deposits by 237% since Q4 2019. Likewise, the top 1% of wealthy Americans have seen their checkable deposits increase by 445% since Q4 2019.

Even more impressive, the number of checkable deposits held by the top 1% of wealthy Americans was below the amount held by Americans in the 50% to 90% wealth percentile for 44-straight quarters from Q1 2010 until Q4 2020. However, as of Q2 2021, the top 1% has $42.5 billion more in their checking accounts than Americans in the 50% to 90% wealth percentile.

Date:Total Household Checkable Deposits (Billions):Bottom 50%:50% to 90%:90% To 99%:Top 1%:Top 1% Minus 50% to 90%:
2010:Q1$344.3$39.2$137.0$109.9$58.2-$78.9
2010:Q2$357.6$40.7$142.9$114.1$59.9-$83.0
2010:Q3$314.0$36.4$126.4$101.5$49.8-$76.6
2010:Q4$417.7$45.7$161.1$136.0$74.9-$86.2
2011:Q1$498.5$52.4$186.6$162.9$96.6-$90.0
2011:Q2$483.8$50.9$181.0$158.1$93.8-$87.1
2011:Q3$615.8$60.9$222.8$200.0$132.1-$90.7
2011:Q4$694.1$66.4$244.4$226.8$156.5-$87.9
2012:Q1$732.0$68.9$253.6$240.7$168.7-$84.9
2012:Q2$683.0$65.0$238.3$224.3$155.3-$83.0
2012:Q3$674.2$64.2$234.4$222.1$153.6-$80.8
2012:Q4$799.9$72.4$269.4$263.6$194.4-$75.0
2013:Q1$849.7$75.7$281.9$281.4$210.7-$71.2
2013:Q2$852.9$75.6$281.6$282.8$212.8-$68.9
2013:Q3$876.9$77.0$287.0$291.5$221.4-$65.7
2013:Q4$983.0$84.7$319.9$327.8$250.6-$69.3
2014:Q1$1,007.8$86.8$330.8$335.8$254.4-$76.4
2014:Q2$1,018.2$88.2$337.6$339.6$252.8-$84.9
2014:Q3$1,009.5$88.1$339.3$336.4$245.7-$93.5
2014:Q4$964.7$85.9$330.2$321.7$226.8-$103.4
2015:Q1$1,059.9$92.5$361.2$353.1$253.1-$108.1
2015:Q2$1,124.6$96.9$383.5$374.2$270.0-$113.4
2015:Q3$979.5$87.7$346.5$324.4$221.0-$125.5
2015:Q4$1,060.8$93.8$373.3$352.1$241.6-$131.7
2016:Q1$1,142.7$99.4$400.7$379.1$263.4-$137.3
2016:Q2$1,093.9$96.9$390.4$362.9$243.8-$146.6
2016:Q3$945.6$87.6$348.8$313.8$195.5-$153.3
2016:Q4$959.6$89.3$351.7$321.3$197.3-$154.4
2017:Q1$1,137.9$102.4$403.5$384.7$247.4-$156.1
2017:Q2$1,125.6$102.4$398.4$383.6$241.2-$157.2
2017:Q3$1,010.4$95.4$362.4$347.4$205.2-$157.3
2017:Q4$1,126.3$104.4$395.4$390.3$236.1-$159.3
2018:Q1$1,239.0$112.7$427.3$431.5$267.6-$159.7
2018:Q2$1,101.3$104.1$385.7$387.0$224.5-$161.1
2018:Q3$918.3$91.3$328.4$326.1$172.5-$155.9
2018:Q4$1,042.3$100.8$367.1$370.7$203.8-$163.3
2019:Q1$1,105.9$106.6$383.6$396.3$219.4-$164.2
2019:Q2$951.1$95.5$336.1$343.9$175.7-$160.4
2019:Q3$779.1$81.8$281.8$284.1$131.4-$150.4
2019:Q4$1,002.7$100.3$351.0$364.0$187.3-$163.8
2020:Q1$1,145.7$110.3$396.9$412.2$225.1-$171.8
2020:Q2$1,422.9$130.0$474.1$510.3$306.2-$167.9
2020:Q3$1,559.1$140.0$513.4$562.1$350.3-$163.1
2020:Q4$2,710.0$203.6$800.0$963.3$744.7-$55.3
2021:Q1$3,134.3$224.8$900.6$1,112.8$901.9$1.3
2021:Q2$3,511.2$241.9$977.4$1,227.8$1,019.9$42.5
2021:Q3$3,538.9

How We Conducted The Study

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