High-Yield Savings Accounts: Online-Only Banks Offer Competitive Rates
Inquiry concerning the standard annual percentage yield for savings accounts.
The national average savings account yield as of August 5, 2025, stands at approximately 0.57% APY, according to Bankrate's latest survey of institutions. However, high-yield savings accounts offer significantly higher rates, often exceeding 4% APY.
Comparing Online-Only Banks and Traditional Brick-and-Mortar Banks
When it comes to APYs, online-only banks often outshine their traditional counterparts. These digital banks typically offer APYs that are multiple times higher than the national average, sometimes reaching as high as 5% APY. In contrast, traditional banks usually offer lower APYs, often around or below the national average.
Minimum Balance Requirements and Fees
Online-only banks also tend to have lower or no minimum balance requirements to earn the highest APYs, making them more accessible to a wider range of customers. Traditional banks, on the other hand, may require higher minimum balances to avoid fees or to qualify for higher interest rates.
In terms of fees, online-only banks typically charge fewer fees, such as no monthly maintenance fees. This is a significant advantage over traditional banks, which often impose such fees unless certain conditions are met.
The Power of Compounding
The power of compounding plays a crucial role in the growth of your savings. With higher APYs, your interest can earn interest over time, helping your savings grow more rapidly.
U.S. Bank's Offerings
At U.S. Bank, a higher APY can be obtained by pairing a qualifying checking account with a Bank Smartly savings account. However, it's worth noting that the relationship rate at U.S. Bank could be significantly higher than the standard rate, depending on the amount of money kept with the bank.
Weekly Updates and Caveats
Bankrate's editorial team updates this information weekly. The APYs shown in this article are as of July 31, 2025, and may have changed since they were last updated. It's essential to use the national average savings rate as a gauge to find a bank offering an APY multiple times higher.
Linking your savings account with one of Bankrate's best checking accounts can also earn a higher yield at some banks.
[1] Bankrate. (2025). Best High-Yield Online Savings Accounts. Retrieved from https://www.bankrate.com/banking/savings/best-high-yield-online-savings-accounts/
[2] Bankrate. (2025). National Average Savings Account Yield. Retrieved from https://www.bankrate.com/banking/savings/national-average-savings-account-yield/
[3] Bankrate. (2025). Best Savings Accounts. Retrieved from https://www.bankrate.com/banking/savings/best-savings-accounts/
[5] Bankrate. (2025). Online Savings Accounts. Retrieved from https://www.bankrate.com/banking/savings/online-savings-accounts/
- Online-only banks, which are known for their competitive rates, often exceed 4% APY in personal-finance, making them an attractive choice for individuals seeking higher returns on their savings.
- In the banking-and-insurance sector, traditional banks typically have lower APYs, often around or below the national average, while online-only banks offer rates multiple times higher, sometimes reaching as high as 5% APY.
