Best savings rates today, September 18, 2024: Rates above 5% ahead of today’s Fed decision

While savings rates have been rising for the past two years, they are scheduled to be cut today for the first time since 2020 at the Federal Reserve meeting. Why? Well, the Federal Reserve is preparing to cut rates. And when they do, savings rates will likely fall as well.

However, there is still time to take advantage of rates that are well above the national average with one of the best high yield savings accounts available today. Even if interest rates fall, you can still earn more interest with a HYSA than with a traditional savings account, which is notorious for offering paltry rates.

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 an interest rate cut affects your savings account

The Fed has no direct influence on 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.

“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 has 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 for cuts at today’s Federal Open Market Committee meeting — meaning savings account rates are likely to fall as well.

“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.”

So 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. 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 dropped 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:

Choosing the right savings account: what should you pay attention to?

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.