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The national average interest rate for savings accounts is 0.05% APY, according to the Federal Deposit Insurance Corp. Online banks typically offer savings rates that are higher than the national average, while traditional brick-and-mortar banks generally offer lower rates.

The average rate paid by banks on basic, federally insured savings accounts known as the annual percentage yield was a mere 0.05 percent as of Monday, according to the Federal Deposit Insurance Corporation. That means if you had $5,000 in a savings account, you would earn $2.50 a year on your money.

Saving the bare minimum That's because the Federal Reserve Bank has determined that this is the average amount a consumer will need to resolve a crisis. Thus, $2000 is the minimum funding goal you should aim for with your savings account. That will be enough to get you through one average-sized crisis.

American households with savings accounts have a median balance of $7,000 and an average balance of $30,600, according to analysis of data collected by the Federal Reserve in 2016.

Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000. Personal finance guru Suze Orman advises an eight-month emergency fund because that's about how long it takes the average person to find a job.

If interest is compounded daily, divide the simple interest rate by 365 and multiply the result by the balance in the account to find the interest earned in one day. Add the daily interest earned to the balance.

The Bureau of Labor Statistics estimates the average 20 to 24-year-old earns about $32,500 a year before taxes. For a couple socking away one income, it would take less than two years to reach $50,000 in savings.

How much interest can you earn on $1,000? If you're able to put away a bigger chunk of money, you'll earn more interest. Save $1,000 for a year at 0.01% APY, and you'll end up with $1,000.10. If you put the same $1,000 in a high-yield savings account, you could earn about $5 after a year.

More top choices for the best high-interest savings accounts Barclays, 0.40% APY, $0 minimum to open account, Member FDIC. TAB Bank, 0.65% APY, $0 minimum to open account, Member FDIC. Vio Bank, 0.57% APY, $100 minimum to open account, Member FDIC. CIT Bank, 0.45% APY, $100 minimum to open account, Member FDIC.