SwitchWize Original Metric

The Bank Gap

The Bank Gap is the spread between what the best high-yield savings accounts pay and what the national-average savings account pays. It is the clearest single measure of deposit inertia — the rate you are giving up simply by not moving your money.

Last reviewed June 10, 2026 · SwitchWize Research Desk

Best HYSA today

4.40%

APY

National average

0.38%

APY

Bank Gap

4.02%

percentage points

How it's calculated

Bank Gap = Best available HYSA APY − FDIC national-average savings APY

Multiply the gap by your balance to get the annual dollar cost of staying at the average.

Why the gap exists

Big banks hold the majority of U.S. deposits and have little incentive to raise savings rates — most customers stay regardless. Online and high-yield banks, competing hard for new deposits, pass far more of the Fed funds rate through to savers. The Bank Gap is the distance between those two worlds.

Because the FDIC national average is deposit-weighted, the giant low-rate banks pull it down, making the gap to the best available account even larger than most savers assume.

Closing your Bank Gap

Closing the gap is the single highest-certainty return available to most savers: move idle cash to an FDIC-insured high-yield account. The insurance is identical, the switch is online, and there is no credit pull. Your rate moves from the national average to the top of the market the day the transfer clears.

Frequently asked questions

What is the Bank Gap?

The Bank Gap is the difference between the best available high-yield savings rate and the national-average savings rate. Today it is about 4.02% — the best accounts pay 4.40% APY while the national average is 0.38%.

How is the Bank Gap calculated?

Bank Gap = Best available high-yield savings APY − FDIC national-average savings APY. The FDIC publishes the national average monthly; SwitchWize tracks top rates daily from official bank pages.

What does the Bank Gap cost me?

Multiply the gap by your balance. At today's 4.02% spread, $25,000 left at the national average instead of a top account costs about $1,005 a year. On $100,000 it is roughly $4,020.

Why does the Bank Gap exist?

Large traditional banks do not need to compete on savings rates to retain deposits, because most customers do not move their money. Online and high-yield banks compete aggressively for deposits and pass more of the Fed funds rate through to savers. The gap is the result.

Is the Bank Gap the same as the Inertia Tax?

They are related but not identical. The Bank Gap is specifically the savings-rate spread. The Inertia Tax is broader — the total cost of inertia across all your products, including debt and fees. The Bank Gap is the savings slice of the Inertia Tax.

Does the Bank Gap change over time?

Yes. It widens when the Fed raises rates and high-yield banks pass the increase through faster than the national average updates, and it narrows when rates fall. SwitchWize tracks it daily on the Bank Gap Index.

How do I close my Bank Gap?

Move idle savings to an FDIC-insured high-yield account. The federal insurance is identical to a big-bank account, the application is online, and there is no credit check. Your rate jumps from the national average to the top of the market immediately.

Is a high-yield savings account as safe as a big bank?

Yes, when it is FDIC-insured (or NCUA-insured at a credit union). Deposit insurance covers up to $250,000 per depositor, per institution, per ownership category — the same protection a national bank carries.

Why is the national average savings rate so low?

The FDIC national average is weighted by deposit volume, and the largest banks — which hold the most deposits — pay very little on savings. That drags the average far below what competitive accounts actually offer.

Where can I see the current Bank Gap?

The SwitchWize Bank Gap Index tracks it live, with the dollar cost broken out by balance tier. The Rate Gap Calculator personalizes it to your own balance and current rate.

Find your personal Bank Gap.

Enter your balance and current rate. The Rate Gap Calculator shows exactly what the gap is costing you, per year and over five years.

See my Bank Gap →

Bank Gap Index (live tracker)The Inertia Tax Recovery Velocity Today's top savings rates