Best savings rates today – Take advantage of APYs up to 5.35% while you can, August 12, 2024

If you’re considering growing your emergency fund or starting a savings fund, now is the time to take advantage of competitive annual percentage yields (APYs).

Savers can still earn up to 5.35% APY with one of the best high-yield savings accounts today, but banks have begun cutting rates after Federal Reserve Chairman Jerome Powell said last week that a “rate cut could be on the table at our September meeting.” But don’t wait for the Fed to make its next move to hit high rates. You could be leaving money on the table.

Below you’ll find CNET’s picks for the banks currently offering the best savings rates.

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 savings interest rates fluctuate

The Federal Reserve doesn’t directly influence savings rates, but its decisions do have a domino effect. When the central bank meets, it assesses the U.S. economy and can adjust the federal funds rate to stimulate growth or slow inflation. Banks typically follow suit by raising or lowering their deposit rates, depending on how the Fed votes.

“When the Fed moves rates, it impacts everything,” said Lanesha Mohip, founder of Polished CFO and CNET Expert Judging Panel member. While this means that interest rates for borrowers may remain high, interest rates for savers may provide solid returns.

Are we at the end of high savings interest rates?

The savings rate has risen over the past two years as the Fed has raised interest rates sharply to combat record inflation.

However, as inflation began to show signs of cooling in late 2023, the Fed decided to pause rates, keeping its target range of 5.25% to 5.5% at its last eight meetings. As a result, savings rates remained attractive and remained high for months.

But with three more meetings to go this year, some experts predict the Fed could still deliver multiple cuts in 2024. And banks are already cutting their APYs in anticipation. In recent weeks, we’ve seen multiple banks cut the rates on their high-yield savings accounts, including My Banking Direct — the main account we track — which lowered its APY from 5.45% to 5.35%.

This is the savings rate compared to last week:

How do you find the best savings account for you?

Your money will grow faster in a high-yield savings account than in a traditional savings account thanks to higher yields. But there’s more to consider than just the APY before opening a HYSA. Weigh these factors to find an account that meets your financial goals:

• 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 ATMs in its network, Mohip says.
• 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 branches. If you can 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.