How much extra could US households earn on their savings?

Households with $10,000 in savings could earn $400 per year instead of just $58 by opting for higher-yield accounts, amounting to a potential $396 billion in extra annual earnings for all US consumers.

What is the average APY on Americans' savings accounts?

The average APY on Americans' savings accounts is just 0.58%, but they could be earning upwards of 4% APY - nearly 7 times more.

When might the window of opportunity for higher savings rates close?

According to the study, rates are expected to start coming down once the Federal Reserve cuts interest rates in September 2025, so the current elevated yield environment may not last much longer.

Home / Business and Economy / Consumers Sitting on Untapped $396B in Savings as Rates Soar

Consumers Sitting on Untapped $396B in Savings as Rates Soar

31 Jul

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Summary

84% of Americans don't search for better savings rates
Average APY on savings is 0.58%, but could earn up to 4%
Potential $396B in extra annual earnings for US households

Consumers Sitting on Untapped $396B in Savings as Rates Soar

As of July 2025, a new study has uncovered a significant savings opportunity that many American households are failing to capitalize on. The research, conducted by the savings marketplace Raisin, found that 84% of US consumers do not actively search for better savings rates, even though they could be earning substantially more in interest.

The study revealed that the average annual percentage yield (APY) on Americans' savings accounts is a mere 0.58%. However, they could be earning upwards of 4% APY - nearly 7 times more. For a household with $10,000 in savings, this difference amounts to $400 in annual earnings versus just $58.

Extrapolated across all US households, this untapped savings potential could translate to a staggering $396 billion per year that consumers are missing out on. With the Federal Reserve leaving interest rates unchanged in July 2025 and no further hikes expected until at least September, the window of opportunity for consumers to take advantage of elevated yields may be closing soon.

"Rates really start to come down once we get into the fall," warned Shana Hennigan, chief business officer at Raisin. "With that backdrop, while consumers still have the opportunity, this might be the time to strike."

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