When it comes to interest rates, banks aren't exactly known for being generous. In fact, the average savings account interest rate in the US is a measly 0.06%. But if you're willing to shop around, you can find some banks that offer competitive rates.
In this blog post, we'll take a look at the average bank interest rates in the US for 2022. We'll also compare rates at traditional and online banks, and give you some tips on how to get the best deal.
Historical National Average Bank Interest Rates in America
The national average interest rate for savings accounts in the United States has been on a steady decline in recent years. In 2021, the FDIC’s findings show that the average savings account interest rate is at 0.06% — a drop of 33% from the previous year. This trend is also evident in other types of bank accounts. The average checking account interest rate is 0.03%, while the average money market interest rate is 0.06%.
These decreases can be attributed to a variety of factors, including the Federal Reserve’s decision to keep interest rates low and the ongoing effects of the pandemic on the economy. However, despite these challenges, there are still ways for Americans to earn competitive interest rates on their deposits.
One option is to open an account with an online bank. Online banks often offer higher interest rates than traditional brick-and-mortar banks because they have lower overhead costs. Another option is to consider a credit union instead of a traditional bank. Credit unions are typically member-owned and not-for-profit, which means they may be more inclined to offer higher interest rates on deposits.
Whatever route you choose, it’s important to compare offers and make sure you understand all the terms and conditions before making a decision. With a little research, you can find an account that will help you reach your financial goals.
Average Bank Interest Rates at Traditional U.S. Banks 2022
The average interest rate on savings accounts at traditional U.S. banks is expected to remain low in 2022, according to the Federal Deposit Insurance Corporation’s (FDIC) findings. The FDIC’s findings show that the U.S. national average savings account interest rate was 0.06% in 2021 — a 33% year-over-year (YoY) decline. Similarly, the average checking account interest rate was 0.03% in 2021 (a 40% YoY decline), while the average money market account interest rate was 0.06% (a 69% YoY decline).
With rates expected to remain low, savers will need to look for other ways to grow their money. One option is to invest in high-yield savings accounts, which offer higher interest rates than traditional savings accounts but typically require a higher minimum balance. Another option is to invest in certificates of deposit (CDs), which offer fixed interest rates for a set period of time.
Average Bank Interest Rates at Online U.S. Banks 2022
One bright spot for savers is that the average interest rate on savings accounts at online U.S. banks is expected to remain higher than at traditional banks in 2022, according to the Federal Deposit Insurance Corporation’s (FDIC) findings. The FDIC’s findings show that the U.S. national average savings account interest rate was 0.20% in 2021 — a 33% year-over-year (YoY) decline. Similarly, the average checking account interest rate was 0.10% in 2021 (a 40% YoY decline), while the average money market account interest rate was 0.15% (a 69% YoY decline).
With rates expected to remain low, savers will need to look for other ways to grow their money. One option is to invest in high-yield savings accounts, which offer higher interest rates than traditional savings accounts but typically require a higher minimum balance. Another option is to invest in certificates of deposit (CDs), which offer fixed interest rates for a set period of time.
How We Conducted The Study
In order to find the average bank interest rates for 2022, we conducted a study using the Federal Deposit Insurance Corporation's (FDIC) findings. The FDIC’s findings show that the U.S. national average savings account interest rate was 0.06% in 2021 — a 33% year-over-year (YoY) decline. Similarly, the average checking account interest rate was 0.03% in 2021 (a 40% YoY decline), while the average money market account interest rate was 0.06% (a 69% YoY decline).
With rates expected to remain low, savers will need to look for other ways to grow their money. One option is to invest in high-yield savings accounts, which offer higher interest rates than traditional savings accounts but typically require a higher minimum balance. Another option is to invest in certificates of deposit (CDs), which offer fixed interest rates for a set period of time.
Conclusion
The decline in average savings account interest rates is expected to continue into 2022, according to the Federal Deposit Insurance Corporation’s (FDIC) findings. This means that savers will need to look for other ways to grow their money.
One option is to invest in high-yield savings accounts, which offer higher interest rates than traditional savings accounts but typically require a higher minimum balance. Another option is to invest in certificates of deposit (CDs), which offer fixed interest rates for a set period of time.
With average savings account interest rates remaining low, it’s important for savers to explore all their options in order to grow their money.
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