Maximize your savings now with these top accounts. Today’s savings interest rate, November 26, 2024

We knew that record-breaking savings with APYs wouldn’t last forever. When the Federal Reserve began cutting the federal funds rate in September, it toppled the first domino in a row that led to lower APYs for high-yield savings accounts.

Only a handful of banks on our list currently have APYs above 5%, while the rest have fallen. However, considering the national average is still only 0.43%, you will still earn much more interest on your account balance than if you had left it in a traditional savings account.

“Overall, HYSAs remain a smart choice for savers,” says Steven Kibbel, a certified financial planner and founder and CEO of Kibbel Financial Planning. “Especially if you put accessibility and safety first. Although it is always wise to keep an eye on rate developments.”

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

Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your details below to get the best CNET affiliate rates for your region.

When the Fed lowers interest rates, it affects your APY

The Fed began cutting rates in September due to cooling inflation and a slight increase in unemployment. Since then, APYs on savings accounts have steadily declined.

To be clear, the Fed does not directly set rates on consumer products such as high-yield savings accounts and certificates of deposit, but its policies do have a ripple effect.

When the Fed raises the federal funds rate—as it has done 11 times in recent years to combat high inflation—banks tend to increase their APYs. Likewise, when the Fed cuts rates, banks tend to lower their APYs.

“While it is true that HYSAs are affected by the Fed’s decisions, not all institutions are adjusting their rates immediately, and some may wait to remain competitive,” Kibbel said. “This means HYSAs remain a reliable option for keeping your money liquid while earning more than other low-risk alternatives.”

After the Fed made its first interest rate cut this year in September, many CNET-followed banks started cutting interest rates on their savings accounts. For example, LendingClub lowered its APY from 5.30% to 5.15% on October 18, ending its run as our best HYSA. On November 7, the interest rate was reduced even further to 5.00% APY.

Despite a slight increase in inflation in October, a third interest rate cut in December cannot be ruled out. The Federal Reserve also takes other data points into account, such as the unemployment rate. If the Fed cuts rates another quarter of a percentage point in December, as some expect, APYs would likely fall even further.

Fortunately, the best savings accounts still offer rates that are much higher than the national average. But don’t wait too long to get your hands on a great prize. Here’s where savings rates stand at the beginning of this week compared to the beginning of last week:

Don’t wait any longer to open a high-yield savings account

Even though interest rates are falling, a high-yield savings account still offers great value.

“In an environment of falling interest rates, it’s still valuable for people to store cash for shorter-term needs — think emergency funds, bills and savings for short-term goals — in high-yield accounts with competitive APYs,” says Alex Michalka, Ph. .D., vice president of investment research at Wealthfront.

The main difference between using a HYSA for your emergency funds and a CD or bond is that you can quickly access the funds without having to pay a penalty. CDs and bonds are better savings tools for your long-term financial plans.

How to choose the right high-yield savings account

Consider focusing less on chasing high interest rates and more on what the product can do for you. Earning a solid interest rate on an emergency fund while providing liquidity may be more important than the hassle of chasing half a percentage point more at another bank.

When deciding which account and bank are best for your savings, consider the following:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, typically between €25 and €100. Others don’t need anything.
• ATM access: Not every bank offers cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM refunds or a wide range of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and member of the CNET Expert Review Board.
• Costs: Consider the costs for monthly maintenance, withdrawals and paper statements, Mohip says. The charges may affect your balance.
• Accessibility: If you prefer personal assistance, look for a bank with physical branches. If you prefer to manage your money digitally, consider an online bank.
• Withdrawal limits: Some banks charge additional withdrawal fees if you make more than six monthly withdrawals. If you think you may need to earn more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is insured with the FDIC or the NCUA. In this way, your money is protected up to €250,000 per account holder, per category, in the event of a bank failure.
• 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 an impression of the cooperation with the bank.

Methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account was given 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 against a set of established criteria that compare annual returns, 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 features
• Advice/coaching in the field of asset management
• Cash deposits
• Extensive ATM networks and/or ATM discounts for out-of-network ATMs

A savings account may receive a lower rating if it does not have an easy-to-navigate website or if it does not offer convenient features such as an ATM. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also receive a lower rating.

*APYs as of November 25, 2024, based on the banks we track at CNET.

**This week’s APY as of November 25, 2024. Based on the banks we track at CNET.

***Weekly percentage increase/decrease from November 18, 2024 to November 25, 2024.

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