High-yield savings vs the national average
The FDIC's national average savings rate, 0.38% APY in the release published October 19, 2026, is an average across all insured banks and branches, weighted toward big banks that pay little.[1] The gap in a single year at 4.00% APY:
| Balance | 4.00% APY | 0.38% (national average) | Extra interest |
|---|---|---|---|
| $5,000 | $200.00 | $19.00 | $181.00 |
| $10,000 | $400.00 | $38.00 | $362.00 |
| $25,000 | $1,000.00 | $95.00 | $905.00 |
| $50,000 | $2,000.00 | $190.00 | $1,810.00 |
| $100,000 | $4,000.00 | $380.00 | $3,620.00 |
The FDIC also publishes a national rate cap for savings, 4.63%, which limits what less-than-well-capitalized banks may pay; it is not a limit for other banks.[2]
What drives high-yield savings rates
High-yield rates move with short-term interest rates set by the Federal Reserve. The federal funds target range has been 3.75% to 4.00% since September 16, 2026.[3] Another useful yardstick is the 13-week Treasury bill: the November 9, 2026 auction produced an investment rate of 4.159%.[4] When the Fed cuts rates, savings APYs usually follow within weeks; a rate locked in a CD does not move.
How much interest high-yield savings earns
Interest in a year is roughly balance × APY: $10,000 at 4.00% is $400.00, or about $32.74 a month. Interest compounds, so leaving it in the account earns a little more each year; the yearly table in the calculator shows both balances side by side. For interest per day and month at any balance, see how much interest will I earn.
Is a high-yield savings account safe?
Yes, if the account is at an insured institution and within the limits: the FDIC insures bank deposits and the NCUA insures credit union shares, each up to $250,000 per depositor, per institution, per ownership category.[5][6] If an app or fintech company holds your money at a partner bank, confirm which bank that is and that the deposit is insured there.
Read the fine printCheck whether the APY applies to the whole balance or only up to a cap, whether it is a promotional rate, and whether monthly fees or minimum balances apply. A money market calculator handles tiered rates and fees.
High-yield savings vs CDs and T-bills
- CDs fix the rate for a term but charge a penalty for early withdrawal; a CD ladder keeps some money coming due regularly.
- Treasury bills are exempt from state and local income tax, which matters in high-tax states; the T-bill calculator converts a bill's yield to the savings APY that matches it after tax.
Related calculators
- Savings calculatorBalance and interest from monthly deposits at an APY
- Money market calculatorTiered APYs, monthly fees and the minimum balance
- CD calculatorValue at maturity from APY or rate, any term
- T-bill calculatorPrice, investment rate and the state-tax edge over a CD
Frequently asked questions
How much will $10,000 earn in a high-yield savings account?
About $400.00 in a year at 4.00% APY, compared with $38.00 at the 0.38% national average.
What is the national average savings rate?
0.38% APY according to the FDIC's national rates published October 19, 2026. The FDIC updates the figure monthly.
Do high-yield savings rates change?
Yes. They are variable and usually move with the Federal Reserve's policy rate, sometimes within days of a change.
How does a HYSA calculator work?
It grows your balance each month at (1 + APY)1/12 − 1, adds any monthly deposit, and does the same at a second APY so you can see the difference in dollars year by year.
Is a high-yield savings account worth it?
For cash you want to keep accessible, a higher APY at an insured bank earns more for the same safety. Weigh any fees, balance caps and promotional periods.
Sources
- National Rates and Rate Caps, October 2026
- 12 CFR 337.7, Interest rate restrictions (national rate and national rate cap)
- Federal Reserve issues FOMC statement (target range 3-3/4 to 4 percent)
- Auctioned securities: Treasury bills, last 40 days (auction results)
- Understanding Deposit Insurance
- Share Insurance Coverage