Best Savings Rates Today, September 25, 2024: APYs Top 5% After Fed Cut. But the Clock Is Ticking

While last week’s rate cut likely marks the end of an era of high savings rates, you can still earn more with a high-yield savings account than with a traditional savings account.

At the moment the national savings rate is 0.46% annual percentage yield, or APY, while the best high-yield savings accounts offer APYs as high as 5.30%. So if you’re ready to grow your emergency fund or start a sinking fund, now’s the time to act. Experts expect the Federal Reserve to cut rates two more times before the end of the year, meaning savings rates are likely to continue falling.

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.

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

The Fed meets eight times a year to assess the U.S. economy and interest rate changes. The Fed can adjust the federal funds rate to boost growth or slow inflation. Since 2022, savers have enjoyed high interest rates as the Fed regularly raised the federal funds rate to combat record inflation. But after holding rates steady for more than a year, the Fed cut rates by 0.5% during Wednesday’s Federal Open Market Committee meeting.

A single rate cut doesn’t have an immediate impact on your wallet. But when the Fed adjusts the federal funds rate, banks typically respond by cutting the interest rates they offer savers.

“The Fed controls short-term interest rates, which directly impact the interest rates banks offer on savings accounts,” said Justin Haywood, certified financial planner and president and co-founder of Haywood Asset Management“As the Fed cuts interest rates to stimulate the economy, banks typically follow suit by cutting the interest rates they offer on deposit accounts, including savings accounts.”

Now that the Fed has responded to the latest labor and inflation reports with a rate cut, we expect savings rates to fall, albeit gradually. Banks have already begun cutting APYs. For example, My Banking Direct — one of the top accounts we track — cut its APY from 5.45% in early August to 5.00% on Sept. 20.

Here’s how the savings rate looked at the beginning of this week, compared to the beginning of last week:

How do you find the right 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.