Forecast for US Savings Account Interest Rates
Interest rates on US savings account fell once again in 2025 and are predicted to do so in 2026.
The Federal Reserve lowered its benchmark rate three times between September and December of 2025 after keeping interest rates unchanged for the majority of the year.
In an effort to fight inflation, the central bank has now lowered the federal funds rate six times after raising it eleven times in 2022 and 2023.
In 2026, there might be more rate reductions. Many banks and credit unions continue to provide comparatively high interest rates on CDs and savings accounts despite the recent reductions. Discover how to profit from these patterns and what to anticipate from savings interest rates in 2026.
The Effects of Savings Account Interest Rates in 2025
In late 2025, the Fed lowered its benchmark interest rate three times. In September, November, and December, it reduced the federal funds rate by a quarter of a percentage point, resulting in a range of 3.5% to 3.75% at the end of the year.
Despite the reductions, mortgage, personal loan, credit card, and savings account interest rates remain relatively high.
The FDIC reports that the nationwide average rate for savings accounts was 0.39% as of December 15, 2025. To view the highest APYs, look into the top high-yield savings accounts.
Deri Freeman, a Prudential certified financial advisor, believes that interest rates might keep declining. “You may still benefit from high-yield savings accounts now, especially with savings accounts that give considerably above the average interest rate, even though interest rates have started to decline and we expect that to continue,” adds Freeman.
Expectations for 2026 US Savings Account Interest Rates
Economists predict more moderate rate reduction at some point in 2026 after the Fed decreased rates at its past three sessions.
At 2.7%, inflation is persistently higher than the Fed’s goal rate of 2%. As of November, the unemployment rate in the United States had risen to 4.6%, the highest level in four years. The Fed raises interest rates to battle excessive inflation while lowers rates to address labor market weakness.
Techniques for Increasing Savings Account Interest Rates
As long as interest rates are high, you can make extra money from your savings account. Finding savings accounts and certificates of deposit with the highest yearly percentage rates is a great way to take advantage of this.
Money coach and certified financial planner Ohan Kayikchyan advises looking for high-yield savings accounts offered by digital banks in order to obtain the greatest APY.
These banks are able to provide more competitive interest rates because they do not have the significant overhead expenses of traditional brick-and-mortar financial institutions. Make careful to read the savings rate tiny print, though.
Bonus rates, such as introductory or teaser rates, are frequently used to encourage new account openings but may expire after a predetermined amount of time. In order to receive the offered rate, there can additionally be a balance requirement.
Check to see if your current bank can offer you a better rate first if you have money in a savings account and are thinking about switching to a different bank with a higher savings rate. “Ask your present bank what they can do for you to keep your relationship and not move your money to a competitor,” advises Kayikchyan.
Additionally, Freeman suggests looking into credit unions with high-yield savings rates. Due to their not-for-profit business approach, credit unions are able to provide members with more affordable rates than traditional banks.
Investing in CDs, which often provide higher interest rates than savings accounts, is an additional choice. Additionally, you may lock in an interest rate with CDs that will not change even if market rates decline.
However, because a CD requires you to keep the money in the account for the whole term, there is a trade-off in freedom. For instance, you must leave money in your account for a full year if you open a one-year CD.
Staggering maturity dates is one way to create a CD ladder. Opening a one-year CD each month for a year may be a straightforward CD ladder. This will allow you to keep access to your money as the CDs mature while taking advantage of current high savings rates and possibly higher rates in the foreseeable future.
Additionally, keep an eye out for bank account incentives that can pay you hundreds of dollars when you open new savings accounts that qualify. To receive the bonus, you usually need to keep the account open, make a qualifying deposit, and hold a minimum balance for a predetermined amount of time.
