High-Yield Savings: How Much Interest Is Your Savings Missing?

Savings · Interest rates · FDIC data for October 2026

The FDIC says the average U.S. savings rate in October 2026 was 0.38%, and the regular savings account at some big banks pays only 0.01%. Some online banks pay much more; for example, Ally Savings listed 3.20% on 10/23/2026. If you leave $10,000 for one year, 0.01% earns about $1.00 in interest, 0.38% earns about $38.00, and 3.20% earns about $320.

The calculator below shows how much interest you miss with your own balance and rate. After it, you will find what APY means, how safe these accounts are, what ID you need, how interest is taxed, and how to move money without missing a bill.

How much interest are you missing?

Money in the account

$

Rate you earn now (APY, %)

Big bank savings · 0.01%Interest checking, average · 0.07%Savings, U.S. average · 0.38%

APY means annual percentage yield: the interest you earn in one year. Look for it in your bank app or statement. If you cannot find it, tap an example rate.

Rate to compare (APY, %)

The 3.20% default is the Ally Savings rate on 10/23/2026, only as an example. Type the rate you see.

How long (years)

13510

Over 5 years, if the rate stays the same, you miss about

$1,701

In the first year alone: $319, about $26.58 a month.

Your rate now 0.01%$5.00

Compare rate 3.20%$1,706

This assumes the rate stays the same and the interest stays in the account. Savings rates are variable and can go down.

Next step: check 4 things before you move money

1. The bank has FDIC insurance (for a credit union, NCUA). The standard amount is $250,000 per depositor, per bank, per ownership category.
2. No monthly fee.
3. No minimum balance.
4. It accepts the ID you have (SSN or ITIN).

Keep this month’s spending money in checking. Interest is taxable income.

Get your free Money Score: where is your family losing money?

What is APY?

APY (annual percentage yield) is the interest you really earn in one year. Under Regulation DD, the federal Truth in Savings rule, APY shows the total interest paid on an account, based on the interest rate and how often interest is added to your balance (compounding) over 365 days. Banks must show both the APY and the interest rate in the account disclosures. If the rate is variable, the bank must say that the rate and APY may change.

A simple way to read it: an APY of 3.20% means $10,000 left for one year, at an unchanged rate, earns about $320. When you compare two accounts, compare APY with APY.

Why do big banks pay so little?

This page does not guess at each bank’s business reasons. What can be checked:

• Each bank sets its own savings rate, and the rate is variable. For example, the Chase Savings page says its rates are variable and set daily at Chase’s discretion.
• The FDIC national rate (0.38% for savings and 0.07% for interest checking in October 2026) is an average weighted by each institution’s share of deposits. Banks that hold more deposits move this number more.
• Regulation DD makes banks publish APY so that people can compare banks. Comparing, and moving the money, is up to the account holder.

On $10,000, the gap between 0.01% and 3.20% is about $319 a year, and about $1,701 after 5 years if rates stay the same.

Is a high-yield savings account safe?

The FDIC says the standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. An account in your name only and a joint account are different ownership categories, so they are insured separately. The FDIC also says that since 1933, no depositor has lost a penny of FDIC-insured funds.

How to check: find the name of the FDIC-insured bank on the sign-up page, then search that name in the FDIC’s BankFind tool. Credit union deposits are insured up to $250,000 by the National Credit Union Administration (NCUA), according to the NCUA.

What ID do you need to open an account?

Under the Treasury Department’s Customer Identification Program rule, a bank must get at least your name, date of birth, address and an identification number before it opens an account. For a U.S. person, that number is a taxpayer identification number, such as an SSN or ITIN. For a non-U.S. person, a bank can accept a taxpayer identification number, a passport number and country, an alien identification card number, or another government ID with a photo.

The same rule lets each bank set its own risk-based procedures. So whether a bank accepts an ITIN, or only an SSN, differs from bank to bank. Check the sign-up page or call the bank before you apply. The IRS issues ITINs to certain people who cannot get an SSN.

Do you pay tax on savings interest?

Yes. The IRS says interest is taxable income in the year it becomes available to you. If a bank pays you $10 or more in interest in a year, you get Form 1099-INT. Even if you do not get the form, you must report all taxable interest on your federal tax return.

Example: $10,000 at 3.20% earns about $320 in a year, so the bank will send a 1099-INT. How much tax you pay depends on your household’s total income.

How to move your money safely

1. Open the new account first. Do not close the old one yet. Check the bank’s name on FDIC BankFind.
2. Link your current checking account to the new account with the account number and routing number.
3. Move the money by ACH (an electronic transfer between two banks). Send a small amount first, and move the rest after it arrives.
4. Keep enough in checking for bills, rent or mortgage, and automatic payments (autopay) this month.
5. Know the withdrawal limits. On 4/24/2020, the Federal Reserve announced it was removing the six-per-month transfer limit from Regulation D and let banks stop enforcing it. Some banks still set their own limit; for example, Ally limits certain withdrawals and transfers to a combined 10 per statement cycle.

Scam warning: the Federal Trade Commission (FTC) says not to believe anyone who says you must quickly move your money to “protect” it. Anyone who tells you that is a scammer. Only move money yourself, between accounts you opened.

Questions people ask

What is a high-yield savings account?

It is a savings account that pays a much higher APY than the U.S. average of 0.38% (FDIC, October 2026). If it is at an FDIC-insured bank, your deposits are insured like any other savings account.

Will the 3.20% rate stay the same?

Not for sure. Ally says its rate is variable and may change after the account is opened. Regulation DD requires banks to say this for variable-rate accounts. Check your APY every few months.

What if I have more than $250,000?

The FDIC standard amount counts per depositor, per bank, per ownership category. Money above $250,000 in the same ownership category at the same bank is not covered by the standard amount. You can call the FDIC at 1-877-275-3342 for your situation.

I get SSI. Should I move money to a high-yield account?

The Social Security Administration (SSA) says interest earned on countable resources does not count as income for SSI. But money in the bank is still a resource, and the SSI resource limit is $2,000 for one person and $3,000 for a couple. Moving money to another bank does not change your total, but interest left in the account makes the balance grow, so keep an eye on the limit.

Can I open an account with an ITIN and no SSN?

It depends on the bank. The federal rule lets banks accept a taxpayer identification number, and an ITIN is one, but each bank sets its own process. Ask the bank “Do you accept an ITIN to open a savings account?” before you apply.

Do I report interest under $10?

Yes. The $10 line only decides whether the bank sends Form 1099-INT. The IRS says you must report all taxable interest, even without a 1099-INT.

Is a money market account the same as a money market fund?

No. A money market deposit account at a bank is covered by the FDIC. Mutual funds are not, according to the FDIC. When you see “money market”, ask whether it is a deposit account or a fund.

This is education, not tax, legal or financial advice. Check your plan documents or a tax professional for your situation.
Facts checked 10/25/2026.