After a couple of years of spiking interest rates in the wake of the pandemic, yields on savings accounts have been falling since late 2024, when the Federal Reserve began trimming its benchmark rate. So, what is a good interest rate on a savings account? And how can you get one?
[See: Best High-Yield Savings Accounts: Up to 4.57% APY]
What Is a Good Interest Rate on a Savings Account?
You’ll typically find the best savings interest rate offered by what’s known as a high-yield savings account. A high-yield savings account offers much higher than average annual percentage yields than a traditional savings account does.
In December 2025, the average rate for a savings account stood at 0.39%, according to the FDIC. By comparison, interest rates for some high-yield savings accounts sit at or near 4.00%.
Vanessa Potter, assistant vice president and branch manager at Addition Financial Credit Union, pegs the best interest rate for a savings account at 4.00% or more. “To find the best interest rates on savings accounts, you need to research and take your time during the process,” she says.
The table below shows a sampling of recent rates for high-yield savings accounts.
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[Read: Best Online Banks.]
How to Get the Best Interest Rate for a Savings Account
Traditional brick-and-mortar banks typically provide lower interest rates, so if you’re hunting for the best interest rate for a savings account, your best bet is likely a high-yield savings account at an online-only bank.
Because online banks don’t operate branches staffed by workers, they can pass along these cost savings to depositors in the form of more generous interest rates. Online banks also attract younger, higher-income customers who are inclined to shop around for higher interest rates, and so they boost their rates to attract and keep customers.
According to Gary Zimmerman, founder and CEO of MaxMyInterest, a digital marketplace that helps people earn the highest interest rates on their cash, “Brick-and-mortar banks typically pay rates that are well below the rate of inflation, which means you’re losing purchasing power every day.”
“While you might want to keep your main checking account at a brick-and-mortar bank, online banks have lower operating costs, and so they’re able to pay higher rates on savings,” he adds. “So savvy savers might want to open multiple accounts — a core brick-and-mortar checking account plus higher-yielding online savings accounts.”
Other types of savings accounts that might deliver attractive interest rates are money market accounts and certificates of deposit.
When you’re seeking a place to put your savings, look for financial institutions whose deposits are federally insured and that don’t charge monthly fees or require minimum balances, says Zimmerman. In addition, be sure the interest rates being advertised apply to all savings balances.
[Read: Best Savings Accounts.]
The Future of Savings Account Interest Rates
Interest rates on savings accounts have continued to drop slightly after the Federal Reserve made three quarter-point cuts to its rate in late 2025. Most observers and futures markets expect the Fed to make one or two additional cuts in 2026. Those cuts would likely lower interest rates on loans, but would also potentially chip away at savings account returns.
Whereas yields of 4% to even 5% were available when interest rates were at their recent peak, savers may need to be satisfied with rates around 3% to 3.5% in 2026, says Dean Tsantes, certified financial planner with VLP, a wealth services firm.
“Some well-known names are paying 3.50% right now. I would not be surprised if that dropped a little bit by the end of the year,” says Tsantes. “I could see your average big bank savings account pay closer to 3%, and I would not be surprised if we saw that approach under 3% in 2026 if the Fed rates continue to drop.”
Tsantes still suggests using a savings account as a financial tool. He recommends stashing about six months of expenses, plus any large upcoming expenses, into a high-yield savings account.
“A 3% return is still great. And if someone loses their job, it’s a great tool and allows for really nice flexibility,” says Tsantes.
However, if you’re looking to maximize your returns and are able to explore other types of accounts, Tsantes suggests using a savings account as one piece of your financial puzzle.
“We don’t want to have too much in a savings account that’s only paying 3%,” says Tsantes. “In the long term, a diversified portfolio is probably going to pay much higher than that.”
But if you’re just getting started on your personal savings journey, or want to focus more on short-term stability with the added bonus of growth, a high-yield savings account will help.
“I think it’s always worthwhile to open a high-yield savings account and stash away a good amount of savings,” says Tsantes. “At the end of the day, they’ll pay you higher rates than what a checking account is going to pay.”
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What Is a Good Interest Rate on a Savings Account? originally appeared on usnews.com
Update 01/15/26: This story was previously published at an earlier date and has been updated with new information.
