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 September 8, 2026 · SwitchWize Research Desk
Source: S&P Capital IQ Pro; SNL Financial Data. Calculations: FDIC. Reflects the $2,500 product tier for savings and interest checking accounts.
Multiply the gap by your balance to get the annual dollar cost of staying at the average.
| Balance | Current earnings | Better-fit earnings | Estimated Bank Gap |
|---|---|---|---|
| $1,000 | $4 | $41 | $38 |
| $5,000 | $19 | $206 | $187 |
| $10,000 | $38 | $413 | $375 |
| $25,000 | $95 | $1,033 | $938 |
| $50,000 | $190 | $2,065 | $1,875 |
| $100,000 | $380 | $4,130 | $3,750 |
Estimates over 12 months at 0.38% current APY and 4.13% better-fit APY. Example only — your result depends on your balance, rates, and time horizon.
States ranked by real local Bank Gap
Weighted by FDIC deposit data and current, observed rates at the banks that actually hold deposits in each state — not the illustrative national figure above. Only states with enough tracked local coverage to compute a trustworthy number appear here; that list grows as coverage does. Full methodology.
| Virginia | 2.38% | 4.13% | 1.75% | $298 |
| Ohio | 0.02% | 4.13% | 4.11% | $296 |
| South Dakota | 0.02% | 4.13% | 4.11% | $296 |
| North Carolina | 0.03% | 4.13% | 4.10% | $295 |
| Delaware | 2.07% | 4.13% | 2.06% | $148 |
Browse the Bank Gap by state
The gap itself is national, but state income tax on savings interest and cost of living both change the right move. Pick a state to see its own after-tax numbers.
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?
How is the Bank Gap calculated?
What does the Bank Gap cost me?
Why does the Bank Gap exist?
Is the Bank Gap the same as the Inertia Tax?
Does the Bank Gap change over time?
How do I close my Bank Gap?
Is a high-yield savings account as safe as a big bank?
Why is the national average savings rate so low?
Where can I see the current Bank Gap?
Use this data
The Bank Gap updates as rates move, and you are welcome to cite or link it. The full month-by-month time series is published as an open dataset, and the way we source and review rates is documented.
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Enter your balance and current rate. The Rate Gap Calculator shows exactly what the gap is costing you, per year and over five years.