A good interest rate on a savings account in 2026 is roughly 3.25% APY or higher. The FDIC national average savings rate is 0.38% APY (August 2026 release) — meaning the best accounts pay roughly 9-10 times more than the typical bank. If your savings account is earning less than 1% APY, you are leaving meaningful money on the table.
What Is the National Average Savings Rate in 2026?
The FDIC tracks national deposit rates monthly. As of its August 2026 release, the national average savings account rate is 0.38% APY. This average is heavily skewed by the major traditional banks (Chase, Bank of America, Wells Fargo) that pay as little as 0.01% APY.
| Bank type | Typical APY range (Sept 2026, confirm current) |
|---|---|
| Big traditional banks (Chase, BoA, Wells) | 0.01% – 0.05% |
| Regional and community banks | 0.05% – 1.00% |
| Online banks (Ally, Marcus, Synchrony) | 3.00% – 3.40% |
| Top online banks and fintechs (CIT, Bread) | 3.75% – 4.10% |
| FDIC national average (all savings accounts) | 0.38% |
Discover Bank is no longer accepting new savings account applications — it merged into Capital One, N.A. on May 18, 2025. See our Discover Bank status guide.
What Counts as a Good, Great, or Poor Rate?
| APY (Sept 2026, confirm current thresholds) | Rating | Explanation |
|---|---|---|
| Below 0.50% | Poor | At or below national average; likely a traditional bank |
| 0.50% – 1.50% | Below average | Some effort made, but still far behind top options |
| 1.50% – 2.75% | Decent | Better than average, but leaving yield on the table |
| 2.75% – 3.50% | Good | Competitive; worth keeping if other features are strong |
| 3.50% – 4.10% | Very good | Among the best available as of September 2026 |
| Above 4.10% | Excellent | Likely a short-term promotional rate — verify it’s not temporary |
How Much Does a Good Rate Actually Matter?
The difference between 0.38% APY (national average) and a representative 3.75% APY (competitive HYSA) is significant over time:
| Balance | 0.38% APY (1 year) | 3.75% APY (1 year) | Annual gain |
|---|---|---|---|
| $5,000 | $19.00 | $187.50 | +$168.50 |
| $15,000 | $57.00 | $562.50 | +$505.50 |
| $30,000 | $114.00 | $1,125.00 | +$1,011.00 |
| $50,000 | $190.00 | $1,875.00 | +$1,685.00 |
Worked example: You keep a $20,000 emergency fund at a big bank earning 0.02% APY (about $4/year). Moving it to a 3.75% APY HYSA earns roughly $750 in the first year. Over 5 years with monthly compounding, the HYSA balance grows to approximately $24,118 — versus about $20,020 at the big bank. That’s a roughly $4,098 difference.
How Savings Rates Have Changed Over Time
| Year | Top HYSA APY (approx.) | Fed Funds Rate (approx.) |
|---|---|---|
| 2019 | 2.00% – 2.40% | 2.25% – 2.50% |
| 2020–2021 | 0.40% – 0.60% | 0.00% – 0.25% |
| 2022 | 0.50% – 3.00% | Rising to 4.25% |
| 2023 | 4.50% – 5.30% | 5.25% – 5.50% (peak) |
| 2024 | 4.25% – 5.00% | Declining (multiple cuts) |
| 2025 | 3.50% – 4.50% | Further cuts to 4.25–4.50%, then 3.50–3.75% by year-end |
| Sept 2026 | 3.00% – 4.10% | 3.50% – 3.75% (held through five consecutive 2026 FOMC meetings, Jan–July) |
Savings rates peaked in late 2023/early 2024 as the Fed held rates near 5.25-5.50% to combat inflation. Rate cuts through 2024-2025 brought top HYSA rates down to today’s roughly 3.00-4.10% range — still well above the FDIC national average, but meaningfully lower than the cycle peak.
Where to Find a Good Savings Rate in 2026
The best savings rates are almost exclusively at:
- Online banks (Ally, Marcus, CIT Bank, Bread Savings, Synchrony, Capital One 360)
- Credit unions — some offer very competitive rates to members
- Fintech savings products (SoFi, Wealthfront Cash, Betterment Cash Reserve)
- Cash management accounts from brokerages
Traditional banks with branches rarely compete on savings rates. If you bank at a big bank for convenience, open a separate HYSA at an online bank and transfer your idle cash there — transfers take 1–3 business days.
For current average savings rates at traditional banks, see average interest rates. High-yield savings accounts pay significantly more — see high-yield savings hub for the top-paying options. For a locked-in rate with no volatility risk, see best CD rates by term.
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