Best savings rates today – Top rates are at 5% APY or more, August 21, 2024

Traditional savings accounts no longer cut it. Annual percentage yields vary from bank to bank, but traditional savings accounts typically offer APYs as low as 0.01%. The best high-yield savings accounts, on the other hand, offer APYs as high as 5.35% — more than 10 times the national average.

These rates won’t stay that way forever. With the Federal Reserve expected to lower interest rates before the end of the year, now is the time to grab a high APY while you can.

Read on to find out where to find CNET’s best high-yield savings accounts.

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.

When will we see APYs drop?

High savings rates have caught everyone’s attention over the past two years as the Fed has regularly raised rates to combat inflation.

As inflation began to show signs of cooling in late 2023, the Fed paused 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.

With three more meetings to go this year, some experts predict the Fed could cut rates several more times in 2024. Last week’s report on declining inflation makes a September Fed rate cut even more likely.

“Overall, the trend toward slower inflation growth remains intact, and the Fed should be able to cut rates at their next meeting in September,” he said. Gary Quinzelvice president of portfolio consulting at Wealth Enhancement Group.

Banks are already cutting APYs in anticipation. In recent weeks, we’ve seen multiple banks cut interest rates on their high-yield savings accounts, including My Banking Direct, the main account we track, which cut its APY from 5.45% to 5.35%.

This is the savings rate compared to last week:

Everything you need to consider when comparing savings accounts

Your money will grow faster in a high-yield savings account than in a traditional savings account thanks to higher yields. You should consider more 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 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.