Don’t wait to take advantage of high-yield savings accounts, up to 5.45% APY, August 5, 2024

If you keep your emergency fund in a traditional savings account, you’re not maximizing your interest potential. The best high-yield savings accounts offer annual percentage returns as high as 5.45%, more than 10 times the national average.

Now that there are signs that inflation is finally slowing, it’s time to grow your savings with a high-yield savings account.

“Many high-yield savings accounts provide savers with a return that is higher than current inflation,” said Christopher M. NaghibExecutive Vice President of First Foundation Bank.

But you need to act now, as most experts expect the Fed to cut rates at its September meeting. That will likely lead to a decline in savings account rates. Don’t wait to take advantage of the high interest rates to maximize your interest income.

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.

How are savings rates affected by the Fed?

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, raising or lowering their short-term rates depending on how the Fed votes.

After last week’s Federal Open Market Committee meeting, Fed Chairman Jerome Powell noted that rate cuts “could be on the table at the September meeting.”

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 rates. 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 make multiple cuts in 2024. And we’re already starting to see banks lower their APYs in anticipation. In recent weeks, we’ve seen My Banking Direct, Laurel Road, TAB Bank, Rising Bank and UFB Direct cut interest rates on their high-yield savings accounts.

This is the savings rate compared to last week:

What to look for when choosing a high-yield savings account

It pays to look for accounts with attractive APYs. But don’t stop there. Weigh these key factors to find an account that aligns with 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, says Lanesha Mohip, founder of Polished CFO and CNET Expert Judging Panel member.
• 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.