Better than average: Find savings accounts with the best interest rates
When you're shopping around for a new savings account, how do you know which are really offering the best deal? To identify the best savings account, you need to go into your search with an idea of what's normal. Once you know the national average savings account interest rate, you'll have an easier time identifying the high interest savings accounts that will provide the best returns.
The national average savings account interest rate is 0.06%
That's according to the FDIC.
Does that sound like a tiny amount to you? It is.
At that rate, if you have a savings account with an average balance of $10,000, you’ll earn just $6 a year. Lucky you, now you can splurge on a Grande next time you're at Starbucks!
In all seriousness, that's a laughable amount of money. When consumers keep funds in our savings accounts, banks benefit. It gives them money to loan out to consumers at much higher interest rates than those we're usually earning.
If they're getting something out of the deal, then why are so many account holders getting so little back?
How to find the best interest rates
The answer is that too many consumers are settling for the big banks rather than seeking out high interest savings accounts at community banks and credit unions that value their account holders more.
Kasasa Saver accounts blow that national average out of the water. Account holders that qualify* earn an average of 0.71% APY from their free Kasasa Saver accounts.
That means in comparison to the $6 the average user earns in the example above, an average Kasasa Saver account holder would earn closer to $70. You can get a lot more than a big cup of coffee with that.
You can stick with more traditional savings accounts if you want, or you can see what banks and credit unions in your area offer you a better way to save.
*Qualifications, limits, and other requirements apply to earn rewards on Kasasa accounts. See your chosen financial institution for details.