Inquiry concerning the standard interest rate for savings deposits.
In the current financial landscape, the national average Annual Percentage Yield (APY) for savings accounts stands at approximately 0.38%, as reported by the Federal Deposit Insurance Corporation (FDIC). This average reflects typical rates at many traditional banks and credit unions. However, high-yield savings accounts, particularly those offered by online-only banks, offer significantly higher rates.
As of July 2025, high-yield savings accounts, especially those from online-only banks, offer APYs ranging from about 4.3% to 5.0%. For instance, Varo Money, an online financial institution, currently offers a best-in-class APY of 5.00%, while other online-only banks and digital divisions report rates between 4.10% and 4.66%.
This means that online-only banks typically offer APYs that are roughly 10 to 13 times higher than the national average savings account rate. The lower average is largely influenced by traditional brick-and-mortar banks offering minimal interest, whereas online banks can provide better rates by having lower overhead costs.
When searching for a high-yield account, comparing online banks with larger banks is advisable. In many cases, savings account interest rates at online banks are higher than what you'll earn from a savings account at a brick-and-mortar bank, even with a relationship rate.
Online banks often have lower minimum balances, no monthly fees, and pay the same APY on all balances. Many online-only banks have minimum opening requirements of $100 or less and pay high APYs on all balances.
For example, U.S. Bank offers higher APYs by pairing a qualifying checking account with a Bank Smartly savings account. The standard APY on Bank Smartly savings is 0.05 percent APY, but it can be increased with qualifying U.S. Bank accounts and certain balance amounts.
In summary, online-only banks offer substantially higher APYs on high-yield savings accounts compared to the national average savings rates found at traditional banks. By using the national average savings rate as a gauge, you can find a bank offering an APY multiple times higher than the national average.
For someone focusing on personal-finance, it's beneficial to explore high-yield savings accounts, such as those from online-only banks, as they offer APYs that can be 10 to 13 times higher than the national average savings account rate in the business sector. Online banks like Varo Money and others provide competitive APYs, even for minimal opening balances and without monthly fees, making them an attractive option for enhancing savings.
