Savings rates are usually variable, which means banks can change them whenever they want. Competition for deposits and banks’ business needs play a role in where banks set savings rates, but regulation plays a part, too. Savings-account yields closely follow the federal funds rate, which is the interest rate banks charge each other for overnight loans and is guided by the Federal Reserve. The Fed’s decision to cut rates to near zero in March 2020 to support the economy during the coronavirus outbreak is partly responsible for the low yields paid on many savings accounts.  But in March 2022, the Fed raised interest rates for the first time since December 2018 and then raised rates again in May 2022 and June 2022. Top-yielding banks have raised savings rates in response to the Fed rate hikes. Still, with interest rates near historic lows, it pays to shop around for a savings account that offers a competitive yield to give your money the best chance for growth. The national average interest rate for savings accounts is 0.10 percent, but it’s easy to find rates that pay much more. “It’s the only place in the investing universe where you’re going to get additional return, without having to take on risk to do it. Put your money in a federally insured financial institution and you have no risk of loss.” - Greg McBride, CFA, Bankrate Chief Financial Analyst. The best savings accounts are federally insured. Money deposited in savings and money market accounts at a bank or credit union is safe and insured for up to at least $250,000 by either the FDIC or NCUA.