Best Savings Rates Today, September 11, 2024: Take Advantage of High APYs Ahead of Fed’s Expected Rate Cut

All eyes are on the Federal Reserve as the central bank is set to cut interest rates at the upcoming Federal Open Market Committee meeting on September 17-18. But what does this mean for savings rates? Now is the time to take action, because once the Fed cuts rates, your earning potential will likely decline as well.

The best high-yield savings accounts offer annual percentage yields, or APYs, of up to 5.25% — more than 10 times the national average. However, we are already seeing rates fall in anticipation of the Fed’s next move. So if you’re looking to grow your emergency fund or start a sinking fund, now is the time to grab a high yield and maximize your income.

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.

How a Fed Rate Cut Affects Savings Rates

The Fed doesn’t directly influence savings rates, but its decisions do have a domino effect. The central bank 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. Banks usually follow suit, raising or lowering their short-term rates depending on how the Fed votes.

“When the Fed decides to lower rates, consumers can expect the APY on their savings accounts to drop,” said Justin Haywood, certified financial planner and president and co-founder of Haywood Asset Management. “This is because the Fed controls short-term interest rates, which directly affect the interest rates banks offer on savings accounts. As the Fed lowers interest rates to stimulate the economy, banks typically follow suit by lowering the interest rates they offer on deposit accounts, including savings accounts.”

Savers have enjoyed high interest rates over the past two years as the Fed regularly raised the federal funds rate to combat skyrocketing inflation. But after holding rates steady for more than a year, the Fed appears to be preparing to cut rates — meaning savings account rates are likely to fall as well.

Where savings interest is headed

At a recent economic symposium, Fed Chairman Jerome Powell said “the time has come for policy to adjust.” And with the latest inflation report showing inflation is headed in the right direction, a rate cut at the Fed’s meeting this month looks more likely than ever.

So the sooner you open one of the best savings accounts today, the more interest you can earn while rates remain high. Banks have already begun lowering APYs in anticipation of a Fed rate cut as early as next week. In recent weeks, we’ve seen multiple banks cut rates on their high-yield savings accounts, including My Banking Direct — the best account we track — which lowered its APY from 5.45% to 5.35% on August 5 and then to 5.25% on August 23.

This is the savings rate compared to last week:

What to look for in a high-yield 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.