High-yield savings account yields remain high after Fed rate pause — but already starting to fall, August 1, 2024

Want to grow your savings a little faster? You can still get a competitive interest rate if you put your money in a high-yield savings account. While interest rates are expected to drop later this year, the Federal Reserve’s latest decision to hold rates steady means that savings APYs will remain high for the foreseeable future.

Currently, the best high-yield savings accounts offer more than 10 times as much national savings averageIf your money is in a traditional savings account, you’re missing out on interest income — and you may even lose money.

But with the Fed poised to cut rates this year, you’ll want to act fast to take advantage of the high APYs. Here are CNET’s picks for the banks offering the best savings account rates right now.

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 the Fed Affects Savings Account Rates

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 have a domino effect.

“If the Fed decides to cut rates, consumers can expect the annual percentage yield on their savings accounts to decline,” he said. Justin Hooihoutcertified financial planner and president and co-founder of Haywood Wealth Management. Conversely, when the Fed raises the federal funds rate, banks tend to raise their interest rates on savings accounts to increase their cash reserves and remain competitive.

“That’s because the Fed controls short-term interest rates, which directly affect the interest rates banks offer on savings accounts,” Haywood said.

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 eight 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 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 consider before choosing a 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.