Best savings rates today – Time is running out for high APYs, July 22, 2024

Want to maximize your savings? Then it’s time to move your money into a high-yield savings account. The best high-yield savings accounts offer rates that are more than 10 times the national average, allowing you to grow your money faster thanks to the magic of compound interest.

Savings rates have been attractive for the past few years, but with the Federal Reserve expected to cut rates in the coming months, it’s time to move your money into a HYSA. Once the Fed cuts rates, your interest rate will likely drop as well.

“This is a good time for savers to open a high-yield savings account before interest rates potentially fall,” said Justin HooihoutCertified Financial Planner and President and Co-Founder of Haywood Wealth Management. “It is important that consumers take advantage of today’s high rates to maximize their savings returns while favorable conditions persist.”

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.

Today’s best savings rates

Here are some of the best savings account APYs currently available:

Why it’s smart to open a high-yield savings account today

Savings rates are variable, meaning that banks can change the interest rate on your savings account at any time. The Federal Reserve does not directly influence savings rates, but its decisions do affect them.

When the Fed raises the federal funds rate — the rate that U.S. banks use to lend or borrow money to each other overnight — banks typically raise their interest rates on savings accounts to increase their cash reserves and remain competitive. Conversely, when the Fed lowers interest rates, banks also lower their savings rates.

Starting in March 2022, the Fed raised rates 11 times to combat record inflation. However, as inflation began to cool in late 2023, the Fed paused raising rates during the last seven meetings of the Federal Open Market Committee. As a result, savings rates remained attractive and barely moved for months.

But experts expect the Fed to begin cutting rates as early as September. And we’re already seeing banks cut APYs in anticipation. My Banking Direct cut the APY on its high-yield savings account from 5.55% to 5.45% on July 12, and TAB Bank cut its rate from 5.27% to 5.02% on July 17.

This is the savings rate compared to last week:

Benefits of high yield savings accounts

High-yield savings accounts offer a low-risk way to grow your savings while benefiting from compound interest. Compound interest can make your money grow faster because you’re not just earning interest on your initial deposit — your interest is earning interest, too.

What else sets HYSAs apart:

• High scores: According to the Federal Deposit Insurance Corporation, HYSA APYs are often 10 times (or more) above the national average.
• Low or no cost: Monthly maintenance fees can eat into your savings. Many online banks can charge low or no fees due to their lower operating costs.
• Liquidity: You can withdraw money from your HYSA at any time without penalty (as long as you take into account any withdrawal limits).
• Accessibility: If you open a HYSA with an online bank, you will have 24/7 access via the mobile app. You may also have many customer service options, including phone, online chat, and secure messaging.
• Low risk: HYSAs are protected by federal deposit insurance when held at an FDIC-insured bank or credit union that is insured by the National Credit Union Administration. That means your money is safe up to $250,000 per account holder, per account type.

How do you choose a savings account with a high return?

It pays to look for accounts with attractive APYs. But don’t stop there. Other important factors to consider before choosing a savings account include:

• 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, Mohip says.
• Cost: 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.