When you’re shopping around for a new savings account, choosing one with a competitive interest rate is key. That means, at the very least, it should beat the national average savings account interest rate.

Savings account rates can change from day to day, so knowing the national average can help you determine which banks have the best rates. Here’s a deeper look at average savings account interest rates and how they’ve changed over time.

What is the national average savings rate?

The FDIC publishes national averages for several types of savings products, including savings accounts. The national rate is the average of rates paid by all insured depository institutions and credit unions for which data is available. Rates are then weighted by each institution’s share of domestic deposits.

Essentially, the national average savings gives you a benchmark for comparing offers from individual banks and credit unions and an idea of what you can expect to earn currently.

What’s important to remember is that this figure is just an average. Financial institutions set their rates based on a variety of factors, and it’s possible to find savings interest rates well above the national average. Online banks, in particular, may offer higher rates because they don’t have the same overhead costs as brick-and-mortar banks and pass those savings on to customers.

Read more: 17 savings accounts that pay 5% APY or higher

Still, knowing where the average savings rate stands can help you establish a baseline for how much you can expect most banks to offer and compare account options.

National average savings account interest rate: Historical view

Savings account rates are sensitive to various economic factors, including inflation and changes to the federal funds rate, which means they fluctuate over time. Here’s a look at how the average rate has changed over the past year (based on the $2,500 product tier):

Though these numbers may seem pretty small, today's savings account rates are the highest they've been in more than a decade, making it a great time to stash your extra cash in a savings account.

To get an even better understanding of how savings account rates have changed over time, we’ll zoom out further and look at historical savings rates since 2014:

As you can see, savings account interest rates have improved significantly over the past 10 years. However, whether or not they continue to increase will depend on the Fed’s decisions regarding interest rates.

Why your savings account interest rate matters

However, a savings account’s interest rate tells only one part of the whole story. A better number to look at when evaluating savings accounts is the annual percentage yield (APY).

The APY represents your annual rate of return when compound interest is considered. In other words, it’s calculated based on both the initial principal and the accumulated interest from previous periods. This means your interest earns more interest, leading to exponential growth over time. The higher your APY, the more you stand to earn on your savings account balance within a given year.

Read more: APY vs. interest rate: What’s the difference, and why does it matter?

Savings contributions should be part of your monthly budget; frequent deposits paired with a high APY can help you reach your savings goals sooner.

Say you deposit $2,000 into a savings account with 4% APY that compounds monthly. After one year, you would earn $81 in interest, assuming you didn’t make any additional deposits.

However, if you did continue to deposit another $100 per month into your account at that rate, you would have more than $3,300 in your account by the end of that year, including $104 in interest. The more you contribute and the longer your money stays in your account generating interest, the faster you could reach your savings goals.

Read more: How to save $10,000 in a year

Banks offering savings rates higher than the national average

As you can see, your savings account interest rate and APY make a big difference in your ability to grow your wealth. Although the national average savings interest rate is just 0.45%, many major banks and credit unions offer as high as 4% or 5% APY — so it pays to shop around.

Here’s a look at our picks for the 10 best high-yield savings accounts today, all of which offer over 4% APY:

When comparing savings accounts, keep in mind that APY is just one piece of the puzzle. Before you open a savings account, be sure to also compare fees, minimum opening deposit requirements, minimum balance requirements, and customer ratings.

Read more: How to open a savings account: A step-by-step guide