Best savings rates today, October 4, 2024: Take advantage of high APYs while you still can

If you’re earning a paltry annual return with a traditional savings account, you’re missing out.

Savings rates have fallen since the Federal Reserve cut rates on September 18, but it’s not hard to find a competitive APY with one of the best high-yield savings accounts today. For example, the top account we follow at CNET offers up to 5.30% APY. So there’s still time to maximize your income if you want to grow your emergency fund or start a sinking fund for a specific goal.

Read on to see CNET’s picks for the best high-yield savings account rates.

Today’s best savings rates

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

Experts recommend comparing rates before opening a savings account to get the best APY possible. You can enter your information below to view rates from CNET affiliates near you.

What the Fed’s rate cut means for savings rates

The Fed cut rates after the latest labor and inflation reports showed the economy is slowing. The central bank’s interest rate cut in September will not have an immediate impact on your wallet.

When the Fed cuts the federal funds rate to stimulate the economy, banks typically respond by lowering the interest rates they offer to savers on deposit accounts, said Justin Haywood, a certified financial planner and chairman of the U.S. central bank. Haywood Asset Management.

“The Fed controls short-term interest rates, which directly affect the interest rates banks offer on savings accounts,” Haywood said. Depending on the bank, it may take several weeks or even months for the changes to take effect.

Some banks have already started lowering 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 interest rates at the beginning of this week compared to the beginning of last week:

Keep these factors in mind when choosing a savings account

It’s important to put your extra money in a savings account with a high APY, but don’t make that the only criteria on your search list. There are other factors to consider when choosing the best savings account for your goals, including:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, typically between €25 and €100. Others don’t need anything.
• ATM access: Not every bank offers cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM refunds or a wide range of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and member of the CNET Expert Review Board.
• Costs: Consider the costs for monthly maintenance, withdrawals and paper statements, Mohip says. The charges may affect your balance.
• Accessibility: If you prefer personal assistance, look for a bank with physical branches. If you prefer to manage your money digitally, consider an online bank.
• Withdrawal limits: Some banks charge additional withdrawal fees if you make more than six monthly withdrawals. If you think you may need to earn more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is insured with the FDIC or the NCUA. In this way, your money is protected up to €250,000 per account holder, per category, in the event of a bank failure.
• 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 an impression of the cooperation with the bank.

Methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account was given 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 against a set of established criteria that compare annual returns, 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
• Automatic savings functions
• Advice/coaching in the field of asset management
• Cash deposits
• Extensive ATM networks and/or ATM discounts for out-of-network ATMs

A savings account may receive a lower rating if it does not have an easy-to-navigate website or if it does not offer convenient features such as an ATM. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also receive a lower rating.