Half the year is gone, and the interest on the average American savings account has barely moved. The FDIC’s monthly survey of what banks and credit unions actually pay, updated Monday, puts the national average savings account rate at 0.38 percent, exactly where it stood in April and May. On a $10,000 balance, that works out to about $38 a year.
Certificates of deposit tell a slightly better story. The same FDIC data set shows the average 12-month CD paying 1.65 percent as of the June 15 update, up from 1.55 percent in May and 1.52 percent in March. A year ago, in June 2025, that average sat at 1.62 percent, so after drifting down through the winter, one-year CD rates have clawed their way back to roughly where they were last summer.
Why rates are treading water
The short answer is the Federal Reserve. On Wednesday the Fed’s rate-setting committee held its benchmark rate steady at a target range of 3-1/2 to 3-3/4 percent, in the first meeting chaired by Kevin Warsh. Just as notable as the decision was the language: the statement was shorter than recent ones and dropped the wording that had pointed toward further cuts, and the committee’s updated economic projections showed the median official penciling in a slightly higher rate by year-end than they projected in March.
For savers, the translation is simple: the era of falling deposit rates appears to be on pause, and banks have little reason to move in either direction quickly. That is why one-year CDs, which price in expectations about where rates are headed, have firmed up in the past three months while plain savings accounts sit still.
What the averages hide
The FDIC’s national rate is an average weighted by deposits, which means the giant banks, where most of the country’s money sits, pull the number down. Plenty of insured institutions, especially online banks and credit unions, pay several times the 0.38 percent average on ordinary savings. The average is best read as a floor and a benchmark: if your bank is paying near it, or below it, you are effectively subsidizing customers elsewhere.
The same goes for CDs. The 1.65 percent average on a 12-month certificate is not the ceiling; it is the middle of a market that includes banks competing hard for deposits and banks not competing at all. The gap between the average and the best insured offers is the raise you can give yourself with an hour of paperwork.
If you are locking money up, consider a simple ladder rather than one big certificate: splitting a sum across CDs maturing at different dates keeps some cash coming free every few months, so a surprise expense does not force you to break a certificate and eat an early-withdrawal penalty, and so you are never stuck with your entire balance locked in at what turns out to be the wrong moment.
How to chase yield without getting burned
Moving money for a better rate is one of the few free lunches in personal finance, but only if the safety net stays intact. Four rules keep it that way.
First, confirm the institution is actually insured. Any bank offering an eye-catching rate should appear in the FDIC’s BankFind directory; for credit unions, the equivalent federal coverage comes from the NCUA’s share insurance. Deposit insurance covers up to $250,000 per depositor, per institution, per ownership category, so large balances may need to be split across banks.
Second, be careful with financial technology apps that advertise bank-like yields. Some are not banks at all; they route your money to partner banks, and insurance only applies if the money actually lands in an insured account in your name. If the fine print is murky, keep walking.
Third, watch for teaser mechanics. Promotional rates that expire after a few months, minimum balances that trigger fees, and CDs that automatically roll into low-rate renewals are all standard ways a headline number quietly shrinks. Mark the maturity date of any CD on a calendar, because the renewal rate is rarely the rate you signed up for.
Fourth, remember that the government competes for your savings too. Treasury bills, bought directly at TreasuryDirect.gov with no fee, are backed by the full faith and credit of the United States, and their interest is exempt from state and local income tax, which matters in high-tax states.
A 15-minute midyear checkup
Pull up your last statement and find the actual rate your savings earns; many people have never looked. Compare it with the FDIC national averages linked above, then with a handful of insured online banks. If your money is earning near the average, the move to a competitive insured account is usually worth hundreds of dollars a year on a five-figure balance, at zero risk.
One thing not to do: reach for extra yield by leaving insured accounts entirely. Products that pay noticeably more than every insured bank in the country are compensating you for a risk, whether the marketing says so or not. With the Fed signaling that rates are likely to sit near current levels for a while, the safest raise available is simply moving money from a bank that is not competing to one that is. Rates may not be going anywhere fast this year, and that is exactly why the rate you settle for matters more, not less.
This article was produced with AI assistance and reviewed by a human editor. Figures are linked to their primary sources; where a claim could not be verified from the public record, we say so.
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