Savings Account Statistics

The average savings account interest rate is 0.75%, as of Q3 2025. The average rate dating back to Q3 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 Q3 2025:

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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

A savings account is a useful tool for managing your money, helping you save for goals and earn a little bit of extra money through interest. Here's a breakdown of how it works:

• Deposits: You deposit funds into your savings account, this is your principal, the starting amount that will grow over time.
• Interest: Savings accounts earn interest on the money you deposit. The interest rate is typically a small percentage, but it...

To open a savings account, you can go online, by phone, or in-person at a branch.

Once you decide on a method, follow these steps:

1. Choose the account: Do your research and pick the best option for you.
2. Provide Personal Information: Furnish personal details including your name, address, date of birth, Social Security number, valid ID, email address, and phone number.
3. Review and Agree to Terms and Conditions: Carefully review and...

The amount of money you need to open a high-yield savings account can vary greatly depending on the bank or credit union offering it. The range typically falls between $0 and $1,000, but some accounts may require a higher minimum deposit.

High-Yield Savings Accounts With $0 Opening Deposit

• Milli Bank Savings - 4.75% APY.
• Varo High-Yield Savings Account - 2.50% - 5.00% APY.
• SoFi® Checking and Savings - 3.60% APY.

Before making any decisions, compare your options and review the terms and...

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

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

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% -...

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

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...

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.
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