Inquiry concerning the common annual percentage yield for savings deposits.
Maximizing Savings: High-Yield Accounts Outperform Traditional Banks
The current national average annual percentage yield (APY) for high-yield savings accounts stands at a modest 0.56% APY as of late July 2025, according to Bankrate's data[1]. However, this figure is dwarfed by the high-yield accounts offered by some online banks, which often pay rates significantly higher than the national average.
High-yield savings accounts typically offer APYs ranging from about 4% to 5%, substantially exceeding the national average savings rate and traditional bank rates[3]. For instance, some leading online banks offer rates as high as 4.66% APY (e.g., Axos Bank) and others around 4.2%[5].
Comparing online banks to traditional banks, the difference is stark:
| Institution Type | Typical Average APY (July 2025) | Notes | |------------------|--------------------------------|-------------------------------| | Online banks | ~2.9% average, up to ~4.66% | Often top rates, low minimum balance requirements, primarily digital access[3][5] | | Traditional banks | Less than 1%, average ~0.44% | Lower yields, often higher fees and minimum balances[3] |
Online banks are a clear winner when it comes to high-yield savings accounts, offering much more competitive APYs, frequently with low or no minimum balance requirements and minimal fees. This makes them an attractive option for savers looking for strong returns without large upfront deposits or fees[1][3][5].
One notable example is U.S. Bank, which offers a higher APY to customers who have a qualifying checking account and maintain at least $5,000 or less across accounts. In this case, the APY is 1 percent[4]. However, this "relationship rate" is more common for brick-and-mortar banks and is sometimes referred to as "relationship rates".
Linking a savings account with a checking account can also earn a higher yield at some banks, such as U.S. Bank's Bank Smartly account, where the standard APY is 0.05 percent APY on any balance, but can be increased if certain conditions are met[2].
It's worth noting that high-yield savings accounts with low minimum balance requirements can be found among online banks, making them accessible to a wider range of savers.
In summary, if you want to maximize returns on a savings account with low minimum balances, shopping among online banks’ high-yield savings accounts is typically your best choice[1][3][5]. The best high-yield savings accounts are paying upwards of 4 percent APY, offering savers the opportunity to grow their savings significantly faster than traditional banks.
[1] Bankrate. (2025). Average savings account rates. Retrieved from https://www.bankrate.com/banking/savings/average-savings-account-rates/ [2] U.S. Bank. (2025). Bank Smartly. Retrieved from https://www.usbank.com/banking/checking/bank-smartly.html [3] NerdWallet. (2025). Best high-yield savings accounts. Retrieved from https://www.nerdwallet.com/best/banking/savings-accounts/high-yield [4] U.S. Bank. (2025). U.S. Bank relationship rate. Retrieved from https://www.usbank.com/customer-service/deposit-account-rates.html [5] Axos Bank. (2025). High-yield savings account. Retrieved from https://www.axosbank.com/products/savings-accounts/high-yield-savings-account
In the realm of personal-finance, the finance industry has witnessed a significant shift in the savings accounts sector, with online banking-and-insurance providers outperforming traditional banks. High-yield savings accounts, offered by these online banks, consistently offer APYs exceeding 4%, while traditional banks often struggle to surpass the national average APY of 0.44%. Therefore, it's advisable to consider high-yield savings accounts in the banking-and-insurance industry for maximizing savings, especially with the convenience of low minimum balance requirements associated with many online accounts.
