What is the interest rate on a savings account?

Average Savings Account Interest Rates for 2018: Compared Across Banks When reporting the interest rates for their savings accounts, banks list the Annualized Percentage Yield (APY), a figure that includes the effect of compounding. read more

For example, a savings account might pay 2% APY. APY is typically used because it takes compounding into account. The actual interest rate you earn is often lower than the quoted APY, but after compounding (earning interest on top of interest you previously earned) you can earn the full APY. read more