Average Savings Account Interest Rates 2021

ElitePersonalFinance
Last Update: June 9, 2021 Banking Make Money Save Money Studies
View All Studies

Looking for the best place to invest your money?

With so many products and options available, savers are often left spinning, figuring out which one is right for them.

But don’t worry, at ElitePersonalFinance – we have your back.

Average Savings Account Interest Rates 2021: Statistics and Key Findings

National average rates:

The average savings account rate is 0.05%. Before, it was 0.09%, making a decrease of 0.04%.

The average checking account rate is 0.04%. Before, it was 0.05%, making a decrease of 0.01%.

The average money market accounts rate is 0.095%. Before, it was 0.195%, making a decrease of 0.1%.

Traditional banks:

Traditional banks offer savings rates, typically ranging from 0.01% to 0.10%. Capital One’s rate of 0.40% is the only exception.

Almost all traditional banks’ savings accounts are below the national average.

The leader is Capital One. Their savings accounts interest rate average at 0.40%. Citibank and HSBC are the only ones that go slightly above the national average.

Traditional banks’ certificate of deposit (CD) rates range from 0.01% to 0.30%.

Online banks:

Online banks offer savings accounts rates ranging from 0.15% to 0.60%. All online banks’ savings and CD rates are over the national average.

Online banks’ certificate of deposit (CD) rates range from 0.15% to 0.70%. All of them are above the national average.

Synchrony High Yield Savings has the highest savings rate of 0.60%.

Synchrony High Yield Savings and Ally Online Savings have the highest CD rates of 0.70%.

COVID update:

Almost all accounts have significantly been affected by the COVID. The average drop after the crisis on almost all accounts roughly is about 3 times. Online banks and the highest paying CDs were among the most affected. Traditional banks still had a drop, but their average wasn’t high enough before the crisis.

Average Savings Account Interest Rates 2021: Charts, Graph, Analysis

Average Account Interest Rates 2021

ElitePersonalFinance analyzed all big banks’ savings and CD interest rates in the US. Unfortunately, we see a significant drop in all banks’ products because of the crisis. The decrease started in March 2020 and continues to drop in April 2020. From then on, the rates remained relatively low, with no significant fluctuation.

Heads up! Things should become better. All of us want that!

Now let’s look at what our latest 2021 analysis shows:

Deposit Product: Average Rates 2019: Average Rates 2020: Average Rates 2021:
Savings Accounts 0.10% 0.09% 0.05%
Checking Accounts 0.06% 0.05% 0.04%
Money Market Accounts 0.18% 0.195% 0.095%

Here are a more detailed analysis of all product rates. Let’s start with accounts of less than $100,000.

Accounts of Less Than $100,000

Deposit Product: National Rate: Rate Cap:
Savings Accounts 0.05% 0.80%
Checking Accounts 0.04% 0.79%
Money Market 0.07% 0.82%
1 month CD 0.04% 0.79%
3 month CD 0.07% 0.82%
6 month CD 0.10% 0.85%
12 month CD 0.16% 0.91%
24 month CD 0.21% 0.96%
36 month CD 0.25% 1.00%
48 month CD 0.27% 1.02%
60 month CD 0.33% 1.08%

And here is how accounts of over $100,000 look in 2021.

Accounts Over $100,000

Deposit Product: National Rate: Rate Cap:
Savings Accounts 0.05% 0.80%
Checking Accounts 0.04% 0.79%
Money Market 0.12% 0.87%
1 month CD 0.05% 0.80%
3 month CD 0.07% 0.82%
6 month CD 0.11% 0.86%
12 month CD 0.17% 0.92%
24 month CD 0.22% 0.97%
36 month CD 0.26% 1.01%
48 month CD 0.28% 1.03%
60 month CD 0.34% 1.09%

Average Interest Rates of Traditional Banks 2021

Traditional banks are well known for their high level of security and safety. Many Americans consider big banks the safest place where they prefer to put their money. However, big banks are not well known for high rates.

Here is how the average traditional banks’ rates look like these days.

Bank: Average Savings Rate: Average Certificate of Deposit (CD) Rate:
Bank of America 0.03% 0.04%
Wells Fargo 0.01% 0.01%
Citibank 0.08% 0.12%
Chase 0.01% 0.03%
HSBC 0.06% 0.29%
US Bank 0.01% 0.01%
SunTrust 0.01% 0.05%
PNC Bank 0.01% 0.04%
Huntington National 0.02% 0.15%
TD Bank 0.03% 0.10%
Capital One 0.40% 0.30%

All Traditional Banks are FDIC Insured.

As you can see, most banks’ savings accounts are below the national average. Rates like 0,01% to 0,03% won’t make us rich … In fact, inflation has a higher value.

The leader in traditional banks is Capital One. Their savings accounts interest rate average at 0.40%. Citibank and HSBC are the only ones that go slightly above the national average.

When assessing certificates of deposit (CDs), you get some relief.

CD rates are slightly higher, but overall, we shouldn’t expect to become rich by this type of investment. Note also that COVID significantly affected all rates. Now, they are about 3 times below. Before, we saw rates of up to 3%. These days are gone.

CDs also have a few disadvantages:

  • Higher balance minimums.
  • Fixed maturities.
  • Withdrawal penalties. (Would you risk a significant amount of your money in the crisis for a long time???)

Only Capital One’s CD rates are a little bit higher. If you deposit $1,000, you can expect $4 for a year.

When we think about our investments, we shouldn’t avoid inflation.

As the price of goods and services rises in a country, your money becomes less and less valuable. One year from now, assuming 2% inflation, $102 will allow you to purchase the same amount of goods that $100 buys you today.

The point is: If you’re not earning at least 2% on your savings, your wealth is actually decreasing by the day.

And what if we also put the insecure times because of the crisis. Who knows what will happen with our money?

Average Interest Rates of Online Banks 2021

Here things have significantly changed. Let’s start with what we wrote about online banks before COVID:

Now we’re getting somewhere.

Unlike traditional banks, you earn a higher interest rate with online banks because they aren’t burdened with operating costs.

They don’t have branches. And only use essential staff.

These cost savings allow them to offer higher interest rates and provide you with a much better savings alternative. And considering all of the institutions below are insured to a combined $250,000 by the Federal Deposit Insurance Corporation (FDIC) – online banks are a far better place to park your money.

Average Interest Rates: Online Banks Graph

But things change … Here is how online bank interest rates look nowadays.

Bank: Average Savings Rate: Average Certificate of Deposit (CD) Rate:
Marcus By Goldman Sachs 0.50% 0.57%
Barclays Online Savings 0.45% 0.25%
HSBC Direct Savings 0.15% 0.36%
American Express Bank 0.50% 0.36%
Discover Bank 0.50% 0.55%
Citizens Access 0.40% 0.16%
Ally Online Savings 0.50% 0.70%
Synchrony High Yield Savings 0.60% 0.70%

Before the crisis, we saw rates of up to $3%. These days are gone. Online banks still offer higher rates than traditional banks, but we can’t expect rates over 0.70%.

Online banks offer savings accounts rates ranging from 0.15% to 0.60%. All online banks’ savings and CD rates are over the national average. OK, this is not so bad, but it could be better.

Online banks’ certificate of deposit (CD) rates range from 0.15% to 0.70%. All of them are above the national average.

Synchrony High Yield Savings has the highest savings rate of 0.60%.

Synchrony High Yield Savings and Ally Online Savings have the highest CD rates of 0.70%.

Are online banks and their high-yield accounts a safe place for your money?

Safety should be our top priority!

Many people believe that bigger and well-known institutions are always safer. There are also people who believe that the highest rates make higher risk. Technically this could be true to some extent. But this is not always the case. As long as the institution is FDIC insured, your money should be safe. FDIC accounts are guaranteed up to $250,000 per depositor, per institution, per ownership category.

Review The Best High-Yield Online Savings Accounts of June 2021

A little tip from us! Don’t put all of your money in one place, even if you feel that it is the safest place, even if the account is high-paying, and even if it is insured. Speed your money in different places!

Historical National Average Bank Interest Rates

Year: Savings Accounts: Money Market Accounts:
2009 0.20% 0.34%
2010 0.17% 0.23%
2011 0.11% 0.15%
2012 0.07% 0.11%
2013 0.06% 0.09%
2014 0.06% 0.08%
2015 0.06% 0.08%
2016 0.06% 0.08%
2017 0.06% 0.09%
2018 0.09% 0.17%
2019 0.10% 0.18%
2020 0.09% 0.195%
2021 0.05% 0.095%

To rise out of the worst recession in modern US history, Federal Reserve officials used lower interest rates to pump liquidity into the economy and stimulate economic growth. As you can see – in 2009 – national average savings rates took a steep dive before flattening out from 2013-2017.

Till 2019 we continue to see a raise. In 2020 there was a slight drop in savings accounts, but only from 0.10% to 0.09%.

Historical National Average Saving Rates Graph

Money market yields exhibited almost the same trend.

Although declines were much larger in magnitude, money market yields finally stabilized in 2014 before beginning an upward ascension in 2017.

Money markets have seen continuous growth till 2020.

Historical National Average Money Market Rates Graph

After the COVID, the rates have significantly dropped.

Questions to Ask Before Choosing a Savings Product

When deciding which option is right for you, you need to assess factors beyond the institution’s creditworthiness, and the interest rate received.

Ask the bank:

  • Is your money FDIC insured?
  • Is the interest rate offered a standard rate or a promotional rate?
  • Is a minimum balance required?
  • Are there extra fees for account transfers or statements?
  • Are there withdrawal penalties if I exit a CD before maturity?

How We Conducted The Study

ElitePersonalFinance provides 100% correct and always up-to-date studies.

To present the most valuable information, we go straight to the source. First, we analyzed national statistics and Census from RateWatch and the Federal Deposit Insurance Corporation (FDIC). Next, we move to each bank’s official sites, crunched the numbers, and consolidated the findings to provide the best savings options available.

Conclusion

Be careful with your money these days. In the insecure times that we live in nowadays, no one can give you the right advice. If you want to invest, spread your money in many different places. However, we should always put some money on the side, so we know that we can rely on that one day.

Read Also

Average Bank Interest Rates 2021

Average Checking Account Interest Rates 2021

Best High-Yield Online Savings Accounts of June 2021

Sources

National Average Statistics:

https://www.rate-watch.com/national-averages

https://www.fdic.gov/regulations/resources/rates/#one

https://www.fdic.gov/regulations/resources/rates/previous.html

Traditional Banks:

https://media.bac-assets.com/DigitalDeposit_NY_NY_Tri_State_Area.pdf?cacheBuster=7051

https://www.wellsfargo.com/savings-cds/consumer-account-rates/

https://online.citi.com/US/ag/current-interest-rates/checking-saving-accounts

https://online.citi.com/US/ag/current-interest-rates/cd

https://www.chase.com/personal/savings/savings-account/interest-rates

https://www.chase.com/personal/savings/bank-cd/interest-rates

https://www.us.hsbc.com/savings-accounts/products/interest-rates/

https://www.us.hsbc.com/savings-accounts/products/certificate-of-deposit/

https://www.usbank.com/savings/todays-savings-rates.aspx

https://www.usbank.com/ICWeb/productComparison.html?productCode=CDA

https://www.suntrust.com/personal-banking/savings-accounts/select-savings

https://www.suntrust.com/personal-banking/savings-accounts/cds/rates?icid=cdrates_noncheckingdeposit_cdir_leftnavp_na_l3_556_557_default

https://apps.pnc.com/rates/servlet/DepositRatesSearch?productGroup=saving

https://apps.pnc.com/rates/servlet/DepositRatesSearch?productGroup=cd

https://www.huntington.com/Personal/savings-cds-overview/premier-savings-account

https://www.td.com/us/en/personal-banking/savings-accounts/

https://www.capitalone.com/bank/savings-accounts/#id_comparesavingsaccounts

Online Banks:

https://www.marcus.com/us/en/savings/high-yield-savings

https://www.marcus.com/us/en/savings/high-yield-cds

https://www.banking.barclaysus.com/online-savings.html

https://www.banking.barclaysus.com/online-cds.html

https://www.hsbcdirect.com/

https://www.americanexpress.com/personalsavings/high-yield-savings-account.html

https://www.americanexpress.com/personalsavings/certificate-of-deposit-CD-accounts.html

https://www.discover.com/online-banking/savings-account/

https://www.discover.com/online-banking/cd/

https://www.citizensaccess.com/our-rates/overview.html

https://www.ally.com/bank/online-savings-account/

https://www.ally.com/bank/view-rates/

https://www.synchronybank.com/banking/high-yield-savings/?UISCode=0000000

https://www.synchronybank.com/banking/cd/?UISCode=0000000

MEET THE AUTHOR

ElitePersonalFinance

Recommended Articles

Debt

Best Mortgage Loan Rates 2021

EPF July 8, 2020
Debt

Average Life Insurance Cost 2021

EPF August 24, 2019

AS SEEN ON