The typical interest rate allocated to savings deposits in financial institutions.
In the current financial landscape, the national average annual percentage yield (APY) for regular savings accounts stands at approximately 0.6% as of July 1, 2025. This figure, which reflects the overall savings account environment including traditional banks with physical branches, pales in comparison to the returns offered by high-yield savings accounts, particularly those provided by online banks [1].
High-yield savings accounts have become a popular choice for those seeking better returns on their savings. These accounts, which are predominantly offered by online banks, typically offer APYs ranging from about 4.3% up to around 5.0% [1][3][4][5]. For instance, some of the best high-yield savings accounts are paying **upwards of 4% APY**, with top accounts offering rates **around 4.3% to 4.44% APY** according to recent listings [5]. The highest rates on some lists hover around **4.6% to 5.0% APY**, significantly exceeding the national average savings rate [3][4].
The reason online banks can offer these higher rates is due to their lower overhead costs. Unlike traditional banks, online banks have fewer physical branches, resulting in lower operational expenses. This allows them to pass on savings to customers through higher interest rates and lower fees [3].
For comparison, the APY range for national average savings accounts is significantly lower, with online banks offering APYs that are about 7 to 8 times higher than the national average savings account APY [1][3].
Here's a breakdown of the APY ranges for various account types:
| Account Type | APY Range | Notes | |-------------------------|---------------------|----------------------------------------------------| | National average savings | ~0.6% | Reflects traditional banks and credit unions [1] | | High-yield savings | ~4.3% to 5.0% | Mostly online banks, significantly higher returns [1][3][5] | | Example: PNC High Yield | 3.95% (select states)| Competitive but slightly below top online rates [2]|
It's worth noting that at U.S. Bank, a qualifying checking account paired with a Bank Smartly savings account can offer a higher APY, depending on the balance [6].
For those seeking a high-yield savings account with a competitive return and a low minimum balance requirement, it's easy to find such an account among the numerous options available. The APYs shown are as of June 26, 2025, and are updated weekly by the website's editorial team.
When searching for a high-yield account, the national average savings rate should be used as a gauge. Calculating the difference between the APY at a big bank compared with the yield at an online bank can show what higher-interest earnings look like.
In many cases, savings account interest rates at online banks are higher than what you'll earn from a savings account at a brick-and-mortar bank, even with a relationship rate. Our website surveys nearly 500 banks and credit unions weekly to generate the national averages [7].
The power of compounding helps your interest earn interest over time, making it even more important to choose an account with a high APY. By selecting a high-yield savings account, you can maximise your savings and earn more interest on your interest, ultimately leading to a significant increase in your returns.
References: [1] Bankrate.com, Average Savings Account Yield, July 1, 2025. [2] PNC Bank, PNC High Yield Savings, 2025. [3] NerdWallet, Best High-Yield Online Savings Accounts of July 2025. [4] Forbes Advisor, Best High-Yield Savings Accounts of July 2025. [5] CNBC, Best High-Yield Savings Accounts of July 2025. [6] U.S. Bank, BankSmartly Savings Account, 2025. [7] MoneyRates.com, Weekly Rates Survey, June 26, 2025.
- For those seeking better returns on their personal-finance, high-yield savings accounts offered by online banks are a popular choice, often providing APYs that exceed 4.3% [1][3][4][5].
- In contrast to the national average annual percentage yield (APY) for regular savings accounts at around 0.6%, finance experts recommend considering high-yield savings accounts to maximize savings, as they typically offer significantly higher rates [1][3].
