Traditional banks typically offer lower interest rates on savings accounts compared to online banks or high-yield savings accounts. The average interest rate for traditional savings accounts hovers around 0.01% to 0.39% APY, which is relatively low. In contrast, high-yield savings accounts, often from online banks, can offer rates around 3.6% to over 4% APY or even higher. Traditional banks have higher overhead costs since they maintain physical branches, and this often results in lower interest rates paid to customers. Online banks, with lower operating costs, generally pass savings to customers through higher interest rates. Some traditional banks may offer higher rates if the savings account is linked to certain checking accounts, but these rates still tend to be lower than what online high-yield accounts provide. In summary, traditional banks usually do not offer higher interest rates on savings accounts; that distinction generally goes to online or high-yield savings accounts.