Best savings rates today, August 29, 2024: don’t miss out on up to 5.25% APY

There’s still time to grab an annual percentage yield, or APY, as high as 5.25% with one of the best high-yield savings accounts. But the clock is ticking.

Although savings rates have been rising for the past two years, experts predict that the Federal Reserve could start cutting rates as early as September. And when that happens, savings rates will likely fall as well. So, now is the time to earn an APY that is more than 10 times higher than the national average.

Read on to discover CNET’s picks for the best high-yield savings accounts.

Today’s best savings rates

Here are some of the best savings account APYs currently available:

Experts recommend comparing rates before opening a savings account to get the best possible APY. You can enter your information below to see rates from CNET’s partners in your area.

Where savings interest rates stand now

High savings rates have been on everyone’s radar for the past two years as the Fed has regularly raised rates to combat inflation. But after holding rates steady for more than a year, the Fed is likely preparing to change its stance.

“Overall, the trend toward slower inflation growth remains intact, and the Fed should be able to cut rates at their next meeting in September,” he said. Gary Quinzelvice president of portfolio consulting at Wealth Enhancement Group.

On Friday, Fed Chairman Jerome Powell indicated that a possible rate cut is on the horizon, saying “the time has come for policy to adjust.” And once the Fed decides to cut rates, your APY will likely drop as well.

Banks are actually already lowering their APYs in anticipation of this. In recent weeks, we’ve seen multiple banks lower the interest rates on their high-yield savings accounts, including My Banking Direct, the account we track most. It lowered its APY from 5.45% to 5.35% on August 5th, and then to 5.25% on August 23rd.

This is the savings rate compared to last week:

What to consider before choosing a savings account

It’s important to put your extra money in an account with a high APY, but don’t stop there. There are many variables to consider before committing to a savings account, including the following:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account — typically between $25 and $100. Others require nothing.
• Access to ATM: Not every bank offers cash deposits and withdrawals. If you need regular access to ATMs, check to see if your bank offers ATM fees or a wide range of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and CNET expert review board member.
• Costs: Be aware of the monthly maintenance fees, withdrawals and paper statements, Mohip said. The fees can eat into your balance.
• Accessibility: If you prefer personal assistance, look for a bank with physical locations. If you like to manage your money digitally, consider an online bank.
• Recording limits: Some banks charge an additional withdrawal fee if you make more than six monthly withdrawals. If you think you need to make more, consider a bank without this limit.
• Federal deposit guarantee: Make sure your bank or credit union is insured with the FDIC or the NCUA. This way, your money is protected up to $250,000 per account holder, per category, if a bank failure occurs.
• Customer Service: Choose a bank that is responsive and makes it 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 with the bank.

Methodology

CNET rated savings accounts at more than 50 traditional and online banks, credit unions and financial institutions serving the nation. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all insured up to $250,000 per person, per account category, per institution, by the FDIC or NCUA.

CNET evaluates the best savings accounts using a set of established criteria that compare annual percentage yields, monthly fees, minimum deposits or balances, and access to physical branches. None of the banks on our list charge monthly maintenance fees. An account will score higher if it offers any of the following benefits:

• Account Bonuses
• Automated savings functions
• Advisory/coaching services for asset management
• Cash deposits
• Extensive ATM networks and/or ATM discounts for out-of-network ATM use

A savings account may be rated lower if it doesn’t have an easy-to-navigate website or if it doesn’t offer convenient features like a debit card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.