Best savings rates today, September 13, 2024: Rate cuts could last days. Here’s where you can still earn up to 5.25% APY

Now is the time to take advantage of competitive savings rates: The Federal Reserve is expected to cut rates at its upcoming policy meeting on September 17-18. For savers, a rate cut will likely mean their annual percentage yield will also fall.

There’s still time to earn up to 5.25% APY with one of the best high-yield savings accounts today. If you’re looking to grow your emergency fund or start a sinking fund, now’s the time to maximize your earnings.

Read on to discover the best savings account rates with high yields according to CNET.

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 the Fed’s Decisions Affect the Savings Rate

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. After more than a year of stable rates, the Fed appears to be preparing for cuts, meaning savings account rates are likely to fall.

Why You Shouldn’t Wait to Open a High-Yield Savings Account

At a recent economic symposium, Fed Chairman Jerome Powell said “the time has come for policy to adjust.” And with the latest inflation numbers approaching the Fed’s 2% target, a rate cut at next week’s meeting seems even more likely.

“The rate cut has been a long time coming,” said Cetin Duransoy, CEO of Raisin“We expected this at the beginning of the year, but inflation numbers had not come down as much as the Fed would have liked. Now that inflation is closer to acceptable levels, we believe interest rates will cool.”

The sooner you open one of today’s best savings accounts , 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 saw its APY drop 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 should you pay attention to when 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 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 with restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.