Personal savings can provide an important source of retirement income and financial flexibility alongside Social Security, pensions and retirement accounts.
Personal savings are funds you set aside outside employer retirement plans and government benefits.
They may include money held in savings accounts, money market accounts, CDs, brokerage accounts and other investments.
Because these funds are personally controlled, they can provide flexibility for retirement expenses, emergencies and income needs that may not be covered by other sources.
Why Build Personal Savings?
Financial Flexibility
Personal savings can be used when needed without relying entirely on retirement accounts or fixed income sources.
Emergency Protection
Savings can help cover unexpected expenses without disrupting long-term retirement investments.
Added Retirement Income
Personal savings can supplement Social Security, pensions, 401(k)s and IRAs
Explore Personal Savings Options
Savings Accounts
Liquid accounts designed to keep cash accessible while earning interest.
Savings rates vary by financial institution, account type, deposit amount and current interest-rate conditions.
Your rate may depend on factors such as:
Account type
Deposit amount
Financial institution
Interest-rate environment
Minimum balance
Account requirements
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Current U.S. Interest Rate Benchmarks
Track key U.S. interest-rate benchmarks that influence savings rates, borrowing costs and overall financial conditions. Data is updated automatically from the Federal Reserve’s H.15 Selected Interest Rates release.
Rate Benchmark
Current Rate
Effective Federal Funds Rate
3.88%
Bank Prime Loan Rate
7.00%
Primary Credit Rate
4.00%
Federal Reserve release date:
October 7, 2026 Update frequency:
Daily on business days Automatic refresh:
This table checks for updated Federal Reserve data every 6 hours. Source:
Federal Reserve Board H.15 Selected Interest Rates
—
View official Federal Reserve rates
These are benchmark interest rates, not consumer
savings-account rates. Actual savings and lending
rates vary by financial institution.
Current National Savings & Money Market Rates
Compare national average deposit rates for savings, interest checking and money market accounts. These benchmarks are published by the FDIC and update automatically when new data is released.
Account Type
National Average Rate
Savings Account
0.37%
Interest Checking
0.07%
Money Market Account
0.63%
FDIC rates updated:
September 21, 2026 Update frequency:
Monthly Automatic refresh:
This table checks for updated FDIC data every 6 hours. Rate type:
FDIC national deposit rate Source:
Federal Deposit Insurance Corporation (FDIC)
—
View official FDIC rates
These are national average deposit rates, not individual
bank offers. Actual rates, minimum balances and account
requirements vary by financial institution.
What Can Affect Your Savings Growth?
Contributions
Saving consistently can increase the amount available for future retirement needs.
Interest Rates
Higher rates can increase the amount earned on deposit accounts.
Time
Leaving money invested or deposited longer can increase the benefit of compounding.
Fees
Account fees can reduce the amount of interest or investment return you keep.
Inflation
Rising prices can reduce the future purchasing power of cash savings
Investment Choice
Savings invested in market securities may offer greater growth potential but also more risk.
Who May Consider Building Personal Savings?
Personal savings can be useful for anyone who wants additional financial flexibility before and during retirement.
Common Reasons
Building an emergency fund
Supplementing retirement income
Covering unexpected expenses
Saving for major purchases
Reducing reliance on debt
Creating a retirement cash reserve
Preparing for healthcare or home expenses
Benefits and Things to Consider
Benefits
Easy access to funds
Flexible use of money
Can supplement retirement accounts
Lower-risk savings options available
Useful for emergencies and short-term needs
Things to Consider
Savings rates may be low
Inflation can reduce purchasing power
Taxable interest may apply
Cash may grow more slowly than investments
Holding too much cash can reduce long-term growth potential
Personal Savings vs. Other Retirement Sources
Personal Savings
Provide flexible money that can be used for retirement expenses and unexpected needs.
The appropriate amount depends on your expenses, retirement income, emergency needs and overall financial situation.
Yes. Personal savings can provide flexibility alongside pensions, Social Security and retirement accounts.
It is a savings account that generally offers a higher interest rate than many traditional savings accounts.
Savings generally focuses on preserving money and maintaining access, while investing involves taking more risk for potential long-term growth.
Many retirees maintain cash reserves for near-term expenses, though the appropriate amount varies.
Interest earned in taxable savings accounts is generally subject to federal income tax.
Eligible accounts at federally insured banks or credit unions may be protected within applicable limits.
Yes. Withdrawals, inflation and low returns can reduce savings over time, which is why personal savings are often coordinated with other income sources.
Related Retirement Option
401(k)
Explore employer-sponsored retirement accounts and rollover options.
