What is the average savings account interest rate in 2026?

The FDIC national average savings account interest rate is approximately 0.41% APY as of mid-2026. This average is dragged down by large traditional banks that pay as little as 0.01% APY. The best high-yield savings accounts at online banks pay 4.35–4.75% APY — more than 10 times the national average.

What is the average CD rate in 2026?

The FDIC national average 1-year CD rate is approximately 1.80% APY as of mid-2026. The best 1-year CD rates at online banks reach 4.75% APY. The national average 5-year CD rate is approximately 1.35% APY; top 5-year rates are 3.90–4.10% APY.

What is the average money market account rate in 2026?

The FDIC national average money market deposit account rate is approximately 0.64% APY. The best money market rates at online banks reach 4.50–4.75% APY. Money market accounts at traditional banks typically pay 0.01–0.25% APY.

Why are big-bank savings rates so low?

Large traditional banks pay low savings rates because they have large, stable deposit bases and don't need to attract new deposits aggressively. Online banks have lower overhead (no branches) and compete primarily on rate, so they pass savings on to customers. This is why switching to an online bank or credit union can increase your savings yield by 4% or more annually.

How often does the FDIC update national average rates?

The FDIC updates national average deposit rates weekly. The rates reflect offers from a statistically valid sampling of banks and credit unions across all states. These are published at fdic.gov under 'National Rates and Rate Caps.'

What is the federal funds rate in 2026?

The Federal Reserve's target federal funds rate is 4.25–4.50% as of mid-2026. This rate directly influences deposit account rates — when the Fed raises rates, banks tend to increase savings and CD rates; when it cuts rates, bank deposit rates fall. The Fed began cutting from a peak of 5.25–5.50% in late 2023 and has made several cuts through early 2026.

Average Bank Interest Rates 2026 — Savings, Checking, CD & Money Market

Average Bank Interest Rates 2026

The FDIC national average savings account rate is 0.41% APY as of May 2026. That number is misleading — it is dragged down by the nation’s largest banks, which pay as little as 0.01% APY. The best savings accounts at online banks pay 4.35–4.75% APY on the same FDIC-insured deposits.

Here is the full picture of what banks are paying across every deposit account type in 2026.

National Average Rates by Account Type — May 2026

Account Type	FDIC National Average	Best Available Rate	Where
Savings account	0.41% APY	4.75% APY	Online banks
High-yield savings	N/A	4.75% APY	Online banks
Checking account	0.07% APY	1.00% APY	Online banks
Money market deposit	0.64% APY	4.75% APY	Online banks
3-month CD	1.53% APY	4.60% APY	Online banks
6-month CD	1.79% APY	4.70% APY	Online banks
1-year CD	1.80% APY	4.75% APY	Online banks
2-year CD	1.50% APY	4.50% APY	Online banks
5-year CD	1.35% APY	4.10% APY	Online banks

Source: FDIC National Rates, May 2026.

What Big Banks Actually Pay

The nation’s four largest banks — JPMorgan Chase, Bank of America, Wells Fargo, and Citibank — pay far below the national average:

Bank	Savings APY	Money Market APY
Chase	0.01%	0.01%
Bank of America	0.01%	0.01–0.04%
Wells Fargo	0.01%	0.01%
Citibank	0.01–0.04%	0.01–0.04%

At 0.01% APY, $10,000 earns exactly $1.00 per year. At 4.50% APY, the same $10,000 earns $450 per year — $449 more.

How Much You’re Losing at a Big Bank

Here is what the difference in rates costs you annually at different balance levels:

Balance	At 0.01% APY	At 4.50% APY	Annual Loss
$1,000	$0.10	$45	$44.90
$5,000	$0.50	$225	$224.50
$10,000	$1.00	$450	$449.00
$25,000	$2.50	$1,125	$1,122.50
$50,000	$5.00	$2,250	$2,245.00

Why Rates Differ So Much Between Banks

Why big banks pay near 0%: Large banks have enormous, stable deposit bases — tens of millions of customers who keep their money there regardless of rate. They don’t need to compete on rate. Their profit comes from lending (mortgages, credit cards, business loans), not from attracting deposits.

Why online banks pay 4%+: Online banks have no branches to maintain, which dramatically lowers their cost structure. To attract deposits from existing bank customers, they compete on rate. They pass their cost savings on as higher APYs.

Why the Fed funds rate matters: When the Federal Reserve raises its benchmark rate, banks can earn more on the money they park at the Fed and on loans — and they tend to pass some of that back to savers. When the Fed cuts rates, deposit rates fall, typically with a lag of a few weeks to months. The Fed’s target rate of 4.25–4.50% in mid-2026 supports these elevated deposit rates.

Historical Context: Where Rates Have Been

Period	National Avg Savings	Context
2010–2015	0.05–0.20% APY	Post-financial crisis near-zero rates
2016–2021	0.05–0.09% APY	Extended low-rate environment
2022 (pre-hikes)	0.06% APY	Pre-Fed tightening cycle
2023 (peak)	0.43% APY	Fed funds rate 5.25–5.50%
Mid-2026	0.41% APY	Fed funds rate 4.25–4.50%

Even at the peak, the national average barely moved. The gains went to online banks, which pushed HYSA rates above 5.50% APY in late 2023. Those rates have since moderated to 4.35–4.75% APY as the Fed has cut.

How to Beat the Average

Switch your savings: Moving to an online high-yield savings account (HYSA) is the single highest-impact step. No minimum deposit required at most providers. Takes 5–10 minutes online.

Lock in a CD if you have time: If you won’t need the money for 6–24 months, a CD at 4.25–4.75% APY is guaranteed for the full term regardless of Fed cuts.

Open a money market account: Money market accounts at online banks pay similar rates to HYSAs (4.50–4.75% APY) and sometimes include check writing.

Consider Treasury bills: T-bills pay 4.20–4.50% APY and are exempt from state income tax — better after-tax yield for residents of high-tax states.

Look at credit union share accounts: Credit unions often pay above-average rates on savings (called “share accounts”) and are insured by the NCUA to the same $250,000 limit as FDIC.

What Rate to Expect in Late 2026

Market forecasts as of May 2026 suggest the Fed will hold rates steady or cut once more before year-end. If the Fed cuts by 0.25%, HYSA rates will likely drop to 4.10–4.50% APY and CD rates to 4.00–4.50%. Locking in a 12–18 month CD now captures today’s rates even if rates fall.

Best High-Yield Savings Accounts 2026 — top rates available now
Best CD Rates 2026 — highest APYs by term
4 Ways to Earn More Interest on Savings — strategies compared
How Much Interest Can $10,000 Earn? — worked examples
Banking Basics Hub — everything about how banks work

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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