The FDIC’s national average savings rate was 0.07% in April 2021, 0.30% in December 2022, 0.46% in December 2023 and 0.45% in July 2024. In its October 19, 2026 release it was 0.38%, while Bread Savings, one of the higher-paying online banks in our tracker, advertised 4.05% (October 14, 2026). On September 16, 2026, the Federal Reserve raised its target rate range by 0.25 points to 3.75%–4.00% — reversing a run of five consecutive 2026 holds and the broader easing cycle this article otherwise describes — so confirm current top rates before comparing accounts.
Understanding this history helps you recognize why rates change, what drives them, and when to lock in versus stay flexible.
Savings Rate History at a Glance
| Period | National Avg Savings Rate (FDIC) | Key Driver |
|---|---|---|
| April 2021 | 0.07% | COVID-19 emergency rate cuts |
| December 2021 | 0.06% | Fed target range still 0%–0.25% |
| December 2022 | 0.30% | Fed hiking aggressively |
| December 2023 | 0.46% | Fed target range 5.25%–5.50% |
| July 2024 | 0.45% | Fed holding at 5.25%–5.50% before its first cut in September 2024 |
| October 2026 | 0.38% (October 19 release) | Fed raised the range to 3.75%–4.00% in September, after holding 3.50%–3.75% from January to July |
Source: FDIC National Rates and Rate Caps monthly releases (fdic.gov/national-rates-and-rate-caps). The FDIC began posting these rates on May 18, 2009 and has no earlier data, so this table starts in 2021, the months checked against the FDIC’s own release pages. Confirm the current month’s figure at the source link before citing it as up to date.
The Major Rate Cycles Since 2008
Cycle 1: Post-Financial Crisis ZIRP (2008–2015)
The 2008 financial crisis prompted the Fed to cut its target rate to 0%–0.25% in December 2008 — a level it held for seven years.
Savers who relied on bank interest earned little while the target range stayed that low. In years when inflation outpaced the interest earned, the real purchasing power of savings accounts declined.
Cycle 2: COVID Crash and the 2022–2026 Rate Cycle
COVID-19 prompted emergency cuts back to a 0%–0.25% target range in March 2020. The FDIC’s national average savings rate was 0.07% in April 2021 and 0.06% in December 2021.
When inflation surged in 2022, the Fed raised rates from 0.25% to 5.25–5.50% in 16 months. Savings APYs followed higher, though how fast and how far varied by bank.
By July 2023, the Fed target range had reached 5.25%–5.50%. The Fed began cutting in September 2024 and cut six times total through December 2025, bringing the target range to 3.50%–3.75%, where it held through five consecutive 2026 meetings (January–July). That hold streak ended on September 16, 2026, when the FOMC voted to raise the target range 0.25 points to 3.75%–4.00% — a reversal from the cutting/holding pattern that had defined the prior two years. Savings rates change often, so confirm current figures at the bank now that the rate environment has shifted.
Why Online Banks Often Advertise Higher Rates
For current rates at specific banks, see the best high-yield savings accounts guide. Big banks can attract deposits through convenience and branch access, so they may feel less pressure to compete on rate. Online-only banks have no branches and many use higher APYs to attract depositors.
Worked example (hypothetical rates, not any bank’s current APY): $10,000 in savings over one year:
- An account at 0.01% APY: $1 earned
- An account at 3.75% APY: $375 earned
- Difference: about $374 a year, roughly $1,870 over 5 years (simple, non-compounded approximation)
What the Rate Environment Means for Savers Today
As of the FOMC’s September 15–16, 2026 meeting, the Fed funds target range is 3.75%–4.00% — a 0.25-point increase from the 3.50%–3.75% range that had held since December 2025. This followed:
- High-yield savings at Bread Savings: 4.05% (see the dated figure in the Sources box; confirm current, since rates change)
- National average savings rate of 0.38% APY (FDIC, October 19, 2026)
- National average 12-month CD rate of 1.76% APY (FDIC, Oct. 19, 2026) — well below the top rates advertised by competitive online banks
Following a rate increase, savings and CD rates would generally be expected to rise as banks compete for deposits, though the size and timing of that pass-through vary by institution. This site does not predict the Fed’s next move. Savers who want to lock in a rate before any future change should consider CDs; for flexibility, a high-yield savings account makes sense.
See also: How the Federal Reserve affects savings rates | Best high-yield savings accounts | CD rates 2026 | Current average interest rates
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