When the Federal Reserve lowered the federal funds rate over the past year, the interest rates on high-yield savings immediately took a hit. When the federal funds rate goes down, interest rates do as well, and vice versa. Banks move interest rates in step with the federal funds rate - the amount theįederal Reserve charges banks to borrow money. It's worth noting that interest rates change often for both traditional and high-yield savings accounts. Savings account interest rates change often The bank you choose makes more of an impact than the amount you keep. But at many banks, it won't make much difference. This preferred interest rate discount is not reflected in our published rates on our website but will be reflected in the interest rate quoted upon loan approval. The balance you keep in your savings account could sway your interest rate. The maximum preferred interest rate discount on a Bank of America auto loan is 0.50. Synchrony High-Yield Savings Account (Member FDIC)Īlly High Yield Savings Account (Member FDIC)Ĭapital One 360 Performance Savings™(Member FDIC) $25,000 or greater, or $100 monthly deposit But, there are quite a few that offer the same interest rates no matter the balance.
There are a few banks that reward customers with a larger balance. Overall, there's no difference between average interest rates for a balance under $100,000 and a balance over $100,000 - both have an average of 0.06% APY ,according to FDIC data. Find out who has the best high-yield savings account rate right now » Savings account interest rates by balance Based on the account interest rates above, it's easy to tell just how wide the gap is between the interest offered by a traditional savings account and an online, high-yield savings account. Online banks don't have the overhead that brick-and-mortar banks do, allowing them to pass on more money in interest. Though they're newer, you may already be familiar with several of the online banking services that offer these accounts, including Ally, Betterment, and Marcus by Goldman Sachs. Most high-yield savings accounts are available through online-only banks. And, it's still significantly higher than the 0.04% average. That's along the lines of the rates you'd see with CDs, but with the flexibility to access your money when you need it. We're not talking investment returns, here - more like 0.4% to 0.6%. High-yield savings accounts earn multiple times more than a traditional savings account. Move your savings from a traditional account to a high-yield savings account and you'll start earning more. Simple High-Yield Protected Goals AccountĮarning more interest is as easy as opening a different savings account. Vio Bank Online High-Yield Savings AccountĬIT Bank Savings Builder High Yield Savings Account Marcus by Goldman Sachs High Yield Online Savings Account