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Key Takeaways
- If you’re socking away savings at Chase, Bank of America, or Wells Fargo, you’re earning virtually nothing in interest.
- But it doesn’t have to be that way—dozens of small and medium-sized banks pay rates of 4%-5% on their high-yield savings accounts.
- Worried a smaller bank isn’t as safe? FDIC insurance protects deposits at every bank, no matter the size.
- On every $10,000, a 4.50% savings account pays $450 a year—versus just $1 at the three biggest banks.
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Big Banks Feel Familiar, but Smaller FDIC Banks Are Just as Safe—and Often Pay Much More
Millions of Americans keep their money at one of the nation’s three largest banks—Chase, Bank of America, and Wells Fargo. If you’re already a customer, it may feel convenient to open a savings account there, too.
But that convenience comes at a steep cost. The standard savings account rate at these banks is just 0.01%—not 1 percent, but one one-hundredth of a percent. In other words, you’ll earn almost nothing at all on your savings if you keep it at one of these banks.
Fortunately, it’s easy to move your savings and earn substantially more—even if you keep your checking, credit cards, or other accounts at your big bank. Dozens of smaller banks pay 4% or more on high-yield savings accounts, with the top nationwide rates reaching as high as 5.00% APY.
If that makes you uneasy because you assume a smaller bank can’t be as safe as Chase and the others, rest assured. All FDIC-insured banks are protected in exactly the same way, to the same limits. Your deposits are covered up to $250,000 per person, per institution—no matter the size of the bank. The same is true of any credit union insured by the National Credit Union Administration (NCUA).
Here’s How Much You Lose at Near-Zero Rates—Whether You Have $5K, $10K, or More
So how much more could you earn by moving your savings to a high-yield account? Even on a small balance, the difference adds up quickly—and at larger balances, it becomes striking. The table below shows the comparison at 0.01% versus 4.50% APY on different balance amounts.
| 1 Year of Savings Earnings: Big Banks vs. a High-Yield Account | |||
|---|---|---|---|
| 0.01% APY big bank rate | 4.50% APY high-yield rate | Difference over 1 year | |
| $1,000 balance | $0.10 | $45.00 | $44.90 |
| $5,000 balance | $0.50 | $225.00 | $224.50 |
| $10,000 balance | $1.00 | $450.00 | $449.00 |
| $25,000 balance | $2.50 | $1,125.00 | $1,122.50 |
| $50,000 balance | $5.00 | $2,250.00 | $2,245.00 |
| $100,000 balance | $10.00 | $4,500.00 | $4,490.00 |
With FDIC insurance protecting deposits no matter the bank’s size, there’s no reason to settle for near-zero savings rates. Whether you have $1,000 or $100,000, moving your money to a high-yield account ensures it will work for you—instead of just sitting idle.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
