The best savings interest rate is still above 4%, but this may not last long. Today’s savings interest rate, December 12, 2024

You can still take advantage of higher interest rates by putting money in the best high-yield savings accounts. Even if the Fed cuts rates next week as expected, a high-yield savings account can help you achieve your short-term goals, such as boosting your emergency fund or setting up a sinking fund.

Opening a HYSA is an easy way to earn interest on money you may need to access quickly. Our CNET Money expert and Save My Cents founder Shang Saavedra also loves that having a separate account can keep you from spending money unnecessarily.

“The psychological trick of these accounts is that you don’t think about money,” Saavedra said. “Most people pay attention to how much money is in their checking account, but not so much in savings accounts.”

If you set up direct deposits to regularly transfer money from your checking to your savings account, the savings can really pile up. This is where your money earns the most interest as you work toward your savings goal.

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

How next week’s Fed meeting could impact savings rates

The Federal Reserve meets December 17-18 and most experts expect another 25 basis point rate cut.

If the Fed chooses to cut, most savings rates are expected to fall in the coming weeks. But that doesn’t mean you’ll see the interest on your high-yield savings account drop immediately.

“While it is true that HYSAs are affected by the Fed’s decisions, not all institutions will adjust their rates immediately, and some may wait to remain competitive,” said Steven Kibbel, a certified financial planner and founder and CEO of Kibbel Financial Planning.

So if a bank wants to attract new customers, it could actually increase its savings rate to encourage people to apply for a new account.

Why choose a HYSA for your short-term savings?

Experts agree that high-yield savings accounts are the best place to keep money for short-term goals. They’re federally insured up to $250,000 per account type and bank, and most offer easy access to your money if you need to withdraw it quickly.

Consider the interest you earn as an extra bonus. “Overall, HYSAs remain a smart choice for savers,” Kibbel said. “Especially if you put accessibility and safety first. Although it is always wise to keep an eye on rate developments.”

Even if high-yield savings accounts continue to decline, you’ll still earn more interest than a traditional savings account with an APY of nearly 0%. High-yield savings accounts still offer interest rates more than ten times higher national average.

“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,” said Alex Michalka, vice -president of investment research at Wealthfront.

If you have money set aside for longer-term savings, consider securing a certificate of deposit while interest rates are high.

What you should pay attention to when opening a savings account

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
• Automatic savings functions
• 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 December 11, 2024, based on the banks we track at CNET. Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.
**Varo only offers 5% APY on balances under $5,000

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