Images by GetTyimages. Illustrations by bankrate
In 2025, US savings show less willingness to move money between banks. This is a noticeable shift from deposit mail and behavior tracking fees seen in the previous year. This inertia costs a lot of money. Banks have few incentives to increase their savings rates, as deposit growth and consumer mobility decline.
So, what’s going on? Simply put, people aren’t moving their money, and banks aren’t giving them a big reason. This is what you need to know.
Deposit contest has been cooled
To understand why savers are losing, you need to understand how bank competition works.
When interest rates rose in 2022 and 2023, banks were rushing to keep depositors out the door. It created a golden moment for savers. Online banks and credit unions offered APYs of 5% or more in high-yie savings accounts.
However, in 2025, dynamics have changed fundamentally.
Historically, banks will raise fees to fund loans or attract deposits if they need to meet liquidity requirements. But there is a deposit supply passing Demand reduces the pressure to provide competitive rates, especially in a stable economic environment.
The Federal Reserve has stopped raising interest rates in the US I started cutting them after 2024. Without that pressure, banks are not forced to compete actively for deposits. result? The savings rate is flat.
It is available at the average rate of standard savings accounts It remained a little flat Since January. This applies to both credit unions and banks – and fintech companies. The flat trend suggests that most consumers are not moving their money to take advantage of better rates and that banks have stopped trying to seduce savers in races to provide higher yields.
Why consumers aren’t taking action
Despite the wide availability of High-yield savings accounts offer rates above 4%most Americans don’t move their money to gain an advantage. According to the recent Bank Rate Surveytwo-thirds of savers earn less than 4% APY.
One in five (17%) said they were not interested in short-term savings.
Large, brick and mortar traditional savings accounts typically offer APY yields of 0.01% to 0.25%.
This explains several factors behind this consumer inertia.
This means that savings can suffer on low Yield accounts for most of 2025, unless consumers take initiatives to move their money.
The real cost of staying
The opportunity cost of maintaining PUT is important as the national average savings rate remains hovering near historic lows. Even a small difference in fees can lead to hundreds of dollars of lost interest over the course of a year for households with a substantial balance.
Assuming you have $10,000 in your deposit, the long-term effects of staying in a low-yield account are:
| Account Type | apy | 10-year end balance | Interest earned |
| Traditional savings account | 0.42% | $10,428.03 | $428.03 |
| High-yield savings account | 4.00% | $14,802.44 | $4,802.44 |
Beyond immediate interest rate revenue, Savers face an additional threat: inflation erosion. Simply put, if your savings account is not paying yields above inflation, you are literally losing money.
How a Saver Makes Money Harder
Given the current environment, active savers can still find opportunities to boost their returns:
What you expect to move forward
Based on current Federal Reserve policies and trends in the banking industry, savers should expect a continuous rate stagnation unless the economic situation changes dramatically. Banks may maintain their current deposit rates without competitive pressure from rising Fed rates.
The fight for consumer deposits may be slowing down in 2025, but that doesn’t mean you should accept sub-par returns for your savings. Smart Savers can earn competitive yields by taking action.
Check your savings rate, shop, and don’t be afraid to move your money if a better deal pops up. If you want to get your money to work hard in 2025, you may need to make the first move.