A savings account is the usual home for an emergency fund and money for near-term goals. Rates differ a lot between banks: the national average is low, while some banks and credit unions pay several times more. This guide explains what to compare, how deposit insurance works and how to check an offer. It does not recommend any bank. Facts checked November 12, 2026.
How low is the average?
The Federal Deposit Insurance Corporation (FDIC) publishes national average deposit rates every month. As of its October 19, 2026 update:
| Account | National average |
|---|---|
| Savings | 0.38% |
| Interest checking | 0.07% |
| Money market | 0.63% |
| 12-month CD | 1.76% |
Source: FDIC National Rates and Rate Caps (savings and checking at the $2,500 tier; money market and CDs average the $10,000 and $100,000 tiers). An account that pays well above these averages is often called "high-yield".
What to compare
- The APY (annual percentage yield): the yearly return including compounding. Check whether it is a promotional rate for a few months or applies only up to a certain balance.
- Insurance: FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category. At federally insured credit unions, the NCUA's Share Insurance Fund covers individual accounts up to $250,000.
- Fees and minimums: monthly fees, minimum balances to earn the rate or avoid a fee, and fees for transfers or paper statements.
- Access: how fast transfers to your checking account arrive, whether there is an ATM card, and any limit on withdrawals. In April 2020 the Federal Reserve deleted the six-per-month limit on convenient transfers from the federal definition of a savings deposit (Federal Reserve). Read the account terms for any limits the bank itself sets.
- How the bank is reached: online-only banks often pay more but have no branches; check customer service hours and how you deposit cash if you need to.
How to check an offer
- Check that the bank is FDIC-insured, or the credit union NCUA-insured, before you open an account. Our FDIC bank lookup uses FDIC data.
- Read the account's Truth in Savings disclosure: it lists the APY, fees and balance requirements.
- Be careful with apps or "partners" that are not banks themselves: check which insured bank actually holds your money.
See what the rate is worth
On $10,000 for a year, the difference between 0.38% and, for example, a 4% APY is about $362 of interest. Try your own numbers with the high-yield savings calculator, or lock in a rate for longer with a CD ladder. Interest is taxable income, reported on Form 1099-INT.
Frequently asked questions
What is a high-yield savings account?
A savings account that pays well above the national average. The FDIC national average savings rate was 0.38% APY on October 19, 2026.
Is my money safe in an online bank?
If the bank is FDIC-insured, deposits are covered up to $250,000 per depositor, per bank, for each ownership category. Check the bank's status before you open an account.
How many withdrawals can I make from savings?
The federal six-per-month limit was deleted from Regulation D in 2020. Check your account terms for any limits your bank sets.
Should I choose a savings account or a CD?
A savings account lets you take money out at any time and its rate can change. A CD usually pays a fixed rate if you leave the money in until it matures, with a penalty for early withdrawal.
Is savings account interest taxed?
Yes, interest is generally taxable each year. Your bank reports it on Form 1099-INT.