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Key Points
- Earn up to 5.30% Annual Percentage Yield (APY) with today’s best high-yield savings accounts.
- APY has been falling since the Fed cut rates by 0.5 percentage points last week.
- A high-yield savings account is a great place to grow your emergency fund or save money you don’t already have set aside.
Last week’s rate cut may mean the era of high savings rates is over, but you can still earn more in a high-yield savings account than in a traditional savings account.
The current national savings rate is an annual percentage yield (APY) of 0.46%, while the best high-yield savings accounts earn up to 5.30% APY. So if you’re ready to build up your emergency fund or start a savings fund, now is the time to act. Experts expect the Federal Reserve to cut rates two more times before the end of the year, which means savings rates are likely to continue to fall.
Read on to see CNET’s picks for the best high-yield savings accounts.
Best savings rate today
Here are the best savings account APYs available today:
| bank | Annual average | Minimum Deposit |
| Lending Club | 5.30% | 0 dollars |
| Newtech Bank | 5.25% | 0 dollars |
| TAB Bank | 5.02% | 0 dollars |
| My Banking Direct | 5.00% | 500 dollars |
| UFB Direct | 4.83% | 0 dollars |
| Synchrony Bank | 4.50% | 0 dollars |
| Capital One | 4.25% | 0 dollars |
| Discover Bank | 4.20% | 0 dollars |
| Ally Bank | 4.20% | 0 dollars |
Experts recommend comparing rates before opening a savings account to get the best APY possible. Enter your information below to see rates from CNET partners in your area.
Why You Shouldn’t Wait to Open a High-Yield Savings Account Today
The Federal Reserve meets eight times a year to assess the U.S. economy and interest rate changes. It can adjust the federal funds rate to stimulate growth or slow inflation. Since 2022, savers have enjoyed high interest rates as the federal funds rate has been regularly raised to combat record inflation. But after holding rates high for more than a year, the Fed cut rates by 0.5% at its Federal Open Market Committee meeting on Wednesday.
A single rate cut won’t have an immediate impact on your wallet, but when the Fed adjusts the federal funds rate, banks typically respond by lowering the rates they offer to savers.
“The Fed controls short-term interest rates, which directly affects the rates banks offer on savings accounts,” said Justin Haywood, a certified financial planner and president and co-founder of Haywood Wealth Management. “When the Fed lowers rates to stimulate the economy, banks typically follow suit by lowering the rates they offer on deposit accounts, including savings accounts.”
As the Fed responded to the recent labor and inflation reports by cutting rates, we expect savings rates to decline, albeit gradually. Banks have already begun lowering their APYs. For example, My Banking Direct, one of the top accounts we track, lowered its APY from 5.45% in early August to 5.00% on September 20.
Here are the savings rates at the beginning of this week compared to the beginning of last week:
| CNET Average Savings APY Last Week | CNET Average Savings APY This Week | Weekly changes | |
| 4.80% | 4.75% | -1.04% |
*Weekly percentage increase/decrease from September 16, 2024 to September 23, 2024.
How to Find the Right Savings Account
It’s important to have extra money in an account with a high APY, but don’t stop there. There are many variables to consider before investing in a savings account. These include:
- Minimum deposit requirement: Some HYSAs require a minimum amount to open an account — typically $25 to $100. Others require nothing.
- ATM Access: Not all banks offer cash deposits and withdrawals. If you need to use ATMs regularly, check with your bank to see if they offer ATM fee reimbursement or a wide network of ATMs, says Lanesha Mohip, founder of Polished and a member of the CNET Expert Review Board.
- charge: Mohip says to watch out for monthly maintenance, withdrawal and paper statement fees, which can eat away at your balance.
- Accessibility: If you prefer to get help in person, look for a bank with physical branches. If you’re more comfortable managing your money digitally, consider an online bank.
- Withdrawal limits: Some banks charge overdraft fees if you withdraw more than six months. If you think you might need to withdraw more, consider a bank that doesn’t have this limit.
- Federal Deposit Insurance: Make sure your bank or credit union is insured by the FDIC or NCUA. This means that if the bank fails, your money is protected up to $250,000 per account holder, per category.
- customer service: Choose a bank that is responsive and easy to get help with your account when you need it. Read online customer reviews and contact the bank’s customer service to get a feel for what it’s like to work at the bank.
methodology
CNET reviewed savings accounts from more than 50 traditional and online banks, credit unions, and financial institutions that serve the nation. Each account received a score from 1 (lowest) to 5 (highest). All savings accounts listed here are insured by the FDIC or NCUA for up to $250,000 per individual, account type, and institution.
CNET ranks the best savings accounts using established criteria that compare annual percentage yield, monthly fees, minimum deposit or balance, and physical branch access. None of the banks on the list charge a monthly maintenance fee. Accounts that offer the following perks earn higher rankings.
- Account Bonus
- Automatic savings feature
- Asset Management Consulting/Coaching Services
- Cash deposit
- ATM discounts for use of extensive ATM networks and/or off-network ATMs
Savings accounts may be rated lower if they don’t have an easy-to-navigate website or don’t offer useful features like an ATM card. Accounts that have restrictive residency requirements or that charge fees for exceeding monthly transaction limits may also be rated lower.
