Average Savings Account Interest Rates

Adam McCann, WalletHub Financial WriterJan 27, 2026

Adam McCann, WalletHub Financial Writer
Jan 27, 2026

The average savings account interest rate is 0.72%, as of Q4 2025. The average rate dating back to Q4 2015 is 0.14%.

Below, you can learn more about how the average savings account rates has fluctuated over time as well as how average rates vary among different types of savings accounts.

Average Savings Account Interest Rates in Q4 2025:

Overall: 0.72%
Branch: 0.72%
Online: 3.12%
Business: 0.98%
Student: 1.19%
National Banks: 0.46%
Regional Banks: 0.34%
Credit Unions: 1.19%

Table of Contents

Average Savings Account Interest Rates by Category

Online banks provide notably higher interest rates than traditional branches. The overall percentage difference in interest rates between online and branch accounts for personal accounts, as measured by the WalletHub Index, is approximately 333%.

	Personal-Online	Personal-Branch	Business-Branch	Student-Branch
$1,000 balance	3.04%	0.68%	0.89%	2.00%
$3,000 balance	3.09%	0.70%	0.91%	1.01%
$10,000 balance	3.19%	0.78%	1.13%	0.89%
$25,000 balance	3.42%	0.87%	1.31%	0.74%
$50,000 balance	3.42%	0.95%	1.40%	0.64%
WalletHub Savings Interest Index	3.12%	0.72%	0.98%	1.19%

Average Savings Accounts Interest Rates by Institution Type

Credit unions offer the highest interest rates on savings accounts across all balance levels, as shown below.

	Community	Small	Regional	National	Credit Union
$1,000 balance	0.17%	0.49%	0.30%	0.41%	1.16%
$3,000 balance	0.17%	0.54%	0.30%	0.41%	1.18%
$10,000 balance	0.20%	0.66%	0.40%	0.52%	1.21%
$25,000 balance	0.22%	0.74%	0.61%	0.87%	1.23%
$50,000 balance	0.21%	0.89%	0.67%	0.86%	1.28%
WalletHub Savings Interest Index	0.18%	0.57%	0.34%	0.46%	1.19%

Average Savings Accounts Interest Rates by Region

The Southeast has the highest savings account interest rates, averaging 0.97% – about 67% more than the Northeast's average of 0.53%.

	Midwest	West	Southwest	Southeast	Northeast
$1,000 balance	0.72%	0.60%	0.52%	0.94%	0.48%
$3,000 balance	0.67%	0.76%	0.58%	0.94%	0.50%
$10,000 balance	0.69%	0.94%	0.59%	1.02%	0.61%
$25,000 balance	0.92%	0.95%	0.69%	1.12%	0.61%
$50,000 balance	0.95%	0.99%	0.78%	1.19%	0.76%
WalletHub Savings Interest Index	0.70%	0.78%	0.58%	0.97%	0.53%

Average Savings Account Interest Rates Over Time

Average Rates by Quarter

The average interest rate for savings accounts hit a peak of 0.80% in Q2 2024 amid Federal Reserve rate hikes but has since declined due to subsequent rate cuts, dropping by approximately 10% to 0.72% in Q4 2025.

Average Rates by Balance

	Q1 2025 (vs. last year)	Q2 2025 (vs. last year)	Q3 2025 (vs. last year)	Q4 2025 (vs. last year)	Q4 2025 vs. Q3 2025
$1,000 balance	0.70% (-0.35%)	0.69% (-4.90%)	0.71% (-1.87%)	0.68% (-0.95%)	-4.60%
$3,000 balance	0.71% (-6.92%)	0.72% (-9.07%)	0.73% (-2.92%)	0.70% (-0.15%)	-4.69%
$10,000 balance	0.79% (-4.72%)	0.78% (-8.03%)	0.80% (-2.53%)	0.78% (+2.14%)	-2.57%
$25,000 balance	0.89% (-5.11%)	0.89% (-7.41%)	0.89% (-4.50%)	0.87% (+2.00%)	-2.04%
$50,000 balance	0.97% (-0.86%)	0.97% (-1.55%)	0.97% (-1.43%)	0.95% (+3.53%)	-2.13%
WalletHub Savings Interest Index	0.74% (-4.75%)	0.74% (-7.69%)	0.75% (-1.85%)	0.72% (+0.47%)	-3.93%

Average Rates by Institution

Over the past decade, credit unions have seen a five times increase in their average savings interest rates, rising from 0.23% in Q4 2015 to 1.19% in Q4 2025.

Average Rates by Region

The Southeast region's average savings interest rate increased by approximately three times from Q4 2023 to Q4 2025, showing the most significant rise compared to other regions.

Methodology

Information for this report was collected from the websites and online fee schedules of each institution. In some cases, we were unable to locate individual fees or features associated with specific accounts. In those instances, we reported the averages of those institutions with valid data. However, we did not report any finding with fewer than 30 valid data points for the account type analysis or 10 valid data points for the institution size and regional analysis.

For the portions of the analysis that present findings by account type and compare a change in fees, features and rates over time, we reviewed over 1600 savings accounts.

In order for the comparison to be consistent, the portion of our analysis that presents findings by institution type and by region reports averages for savings accounts from over 400 financial institutions including roughly 24 community banks (<$1 billion in total deposit volume), 23 small banks (≤$1B- >$10B in total deposit volume), 20 regional banks (≤$10B – $100B in total deposit volume), 9 National Banks (those with National footprint), and 25 credit unions. Each institution-type category, excluding National Banks, is weighted by region and thus includes five institutions from each region of the US (Midwest, West, Southwest, Southeast, Northeast). The regional designation for each institution type, excluding National Banks, was chosen based on the state where each institution is headquartered. Because National banks have, by definition, a footprint that reaches across multiple portions of the US, they were excluded from our regional analysis.

Although we chose the institutions for our sample of each institution type and regional category at random, some results may be skewed by selection bias due to the small number of institutions in each category.

WalletHub Index Weights:
The WalletHub Savings Interest Index include the following weights, adjusted to account for the average savings account balance of $5,923, as reported by Pitney Bowes in 2012. We included interest rates for savings accounts, as it is highly competitive in today’s market.

Savings Account Interest	Interest Index Weight
$1,000 balance	3.5
$3,000 balance	7
$10,000 balance	4
$25,000 balance	0.5
$50,000 balance	0.25

Prepaid complaints information was collected from “Consumer Complaint Database” found on Consumer Financial Protection Bureau website.

Historical Raw Data
Full data sets are available to educators and members of the press upon request.

Average Savings Account Interest Rates FAQs(9 questions)

Editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Upvotes

What's the difference between a high-yield savings account and investing?

Lauren Smith, WalletHub Staff Writer

The difference between a high-yield savings account and investing is a high-yield account preserves capital and earns modest interest income, while investments are more of a risk but have the potential for greater returns. So, savings accounts are used to store cash, and investments are employed to grow money.

High-Yield Savings Accounts vs. Investing

High-Yield Savings Accounts	Investing
Low-risk and stable	Varying degrees of risk and volatility
Relatively low returns	Potentially higher returns depending on the asset class
Very liquid	Converting to cash may take time
Monthly withdrawals or transfers may be limited	Early withdrawals could trigger penalty fees
Used to store cash	Used to grow money

Ways High-Yield Savings Accounts Are Different Than Investing

Risk

A high-yield savings account is considered a low risk. The FDIC or NCUA insures savings-account deposits up to $250,000 per institution. Even if the bank or credit union fails, your funds are protected. On the other hand, investing involves varying degrees of risk depending on the chosen vehicle. Stocks, bonds, mutual funds, and other investments can fluctuate in value and are subject to market volatility.

Potential Returns

High-yield savings accounts offer relatively low-interest rates compared to other investment options. While the specific interest rates can vary, they are generally designed to keep pace with or slightly exceed inflation. The main benefit of a high-yield savings account is capital preservation and stability, rather than generating substantial returns.

Investing has the potential for higher returns over the long term. Investments in stocks, bonds, real estate, or other assets can appreciate in value, and dividends or interest payments can provide additional income. For context, the average interest rate among savings accounts has been below 0.25% for the past decade, while the S&P has an average annualized return of 10% since its inception. Note, there are high-yield accounts that offer APYs of just under 5% right now.

Liquidity

Although financial institutions may have limits on monthly withdrawals and transfers, funds deposited in your high-yield savings account are liquid, which means you can access your money quickly and easily. This makes them suitable for short-term savings goals or emergency funds. Investing, especially in certain assets like real estate or long-term bonds, can have less liquidity. Selling an investment and converting it into cash may take time, and in some cases, you may face fees or penalties for early withdrawal.

Purpose

High-yield savings accounts are often used to store cash reserves, emergency funds, or savings for short-term goals, such as vacations or upcoming expenses. They provide a secure place to park money while still earning interest. Investing, on the other hand, is typically associated with long-term financial goals, such as retirement planning or building wealth over time. It's generally advised to have three to six months of expenses saved before investing. Once you've built up your savings, you should invest 10% to 15% of your annual income.

You can compare the best high-yield savings accounts and ask questions to learn more about investing here at WalletHub.

Upvotes

How much money should I keep in my savings account?

Kathleen Cole

You should keep three to six months' living expenses in your savings account, plus a bit extra. Most experts recommend saving enough money to live on for the amount of time it would take you to find a new job if you were to lose yours and adding a little more for emergencies.

How to Determine How Much You Need to Keep in Savings

Split your purchases into two categories: fixed and...

View more answers

Upvotes

What is a savings account?

Kathleen Cole

A savings account is a type of interest-earning bank account that usually provides a higher return than a checking account but is slightly less accessible. Many savings accounts come with a limit of six withdrawals or transfers per month. Withdrawals via bank teller or ATM are excluded from this number.

Key Things To Know About Savings Accounts

Interest.
The average savings account has earned interest at a rate of 0.04% -...

View more answers

Upvotes

What are the pros and cons of savings accounts?

Lauren Smith, WalletHub Staff Writer

The pros of a savings account are guaranteed interest earnings, easy access to your money, and FDIC/NCUA insurance to protect your funds. The cons of a savings account are low rates compared to other investment opportunities, the risk of inflation eroding your purchasing power, and transaction limits.

Pros and Cons of Savings Accounts

Pros of Savings Account	Cons of a Savings Account
...	Low interest rates

Upvotes

Are high interest rates or low interest rates better?

Theresa Chalfant, Writer

Low interest rates are better than high interest rates when you're borrowing money, whether it's with a credit card or a loan. High interest rates are only good when you're able to earn interest, such as when you put money in a savings account, checking account, CD or money market account.

The rate at which you'll earn interest from a bank will be indicated as a percentage, followed by “APY” (annual percentage yield). With...

Upvotes

Are high-yield savings accounts worth it?

Lauren Smith, WalletHub Staff Writer

High-yield savings accounts are worth it when their APYs outpace inflation and you want to grow your money without much risk. Inflation can eat into your returns if it rises faster than your account's yield, and more suitable options are available for the bulk of your savings if you have a long investment horizon.

How to Determine if High-Yield Savings Accounts Are Worth It

Consider the Interest Rate Environment

High-yield savings accounts...

Upvotes

Is savings account interest taxable?

Lauren Smith, WalletHub Staff Writer

Yes, savings account interest is taxable because it is considered part of your total income for the year. The IRS requires that you report all of your income, including any amount of interest you may have received, on your tax return.

Key Things to Know About Taxes on savings account Interest

Your bank or other financial institution will send you Form 1099-INT if you've earned $10+ in interest during the year.
...

Upvotes

What is the interest rate on a $1,000 loan?

Grace Enfield, Content Writer

The interest rate on a $1,000 loan from a major lender could be anywhere from 6.6% to 35.99%. It's difficult to pinpoint the exact interest rate that you'll get for a $1,000 loan since lenders take many factors into account when calculating your interest rate, such as your credit score and income. If you have a high credit score and income, you will likely get a low interest rate on a $1,000 loan.

Upstart...

Upvotes

What is a good interest rate for an unsecured personal loan?

Grace Enfield, Content Writer

A good interest rate for an unsecured personal loan is between 7.44% and 9%. The best unsecured personal loans have interest rates as low as 7.44%, and the average interest rate for a 24-month loan from a bank is around 9%, according to the Federal Reserve.

For your convenience, below you can see some good interest rates for an unsecured personal loan by credit level.

Good Interest Rates for Unsecured Personal Loans by Credit Level

...

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