Today – Now’s the Time to Start Earning up to 5.35% APY Before Rates Drop

Savers, this is for you: There’s still time to snag a great interest rate before the Federal Reserve’s anticipated rate cuts. Experts are confident that the Fed will lower the federal funds rate in September after Fed Chair Jerome Powell said at the latest Federal Open Market Committee meeting earlier this month that a “rate cut could be on the table.” 

Right now, the top high-yield savings accounts earn annual percentage yields, or APYs, up to 5.35% — more than 10 times the national average. So don’t wait until the Fed makes its next move to snag a high rate. You could be leaving money on the table. 

Here are CNET’s picks for the banks offering the best savings account interest rates right now. 

Today’s best savings rates

Here are some of the top savings account APYs available right now:

Experts recommend comparing rates before opening a savings account to get the best APY possible. You can enter your information below to see CNET’s partners’ rates in your area.

What influences savings rates? 

The Federal Reserve doesn’t directly affect savings rates, but its decisions have ripple effects. When the central bank meets, it assesses the US economy and may adjust the federal funds rate to help boost growth or slow down inflation. Banks tend to follow suit, increasing or decreasing their deposit account rates according to how the Fed votes. 

“When the Fed changes the rates, it impacts everything,” said Lanesha Mohip, founder of the Polished CFO and a member of CNET’s Expert Review Board. Though this means interest rates for borrowers can remain expensive, interest rates for savers can offer solid returns.

When will we see savings rates drop? 

Over the last two years, savings rates have been trending upward as the Fed implemented aggressive rate hikes to combat record inflation. 

However, as inflation began to show signs of cooling in late 2023, the Fed opted to pause rates, maintaining its target range of 5.25% to 5.5% at its last eight meetings. As a result, savings rates remained attractive, staying high for months.

But with three meetings left this year, some experts predict that the Fed could still make multiple cuts in 2024. And banks are already lowering APYs in anticipation. Over the past few weeks, we’ve seen multiple banks lower rates on their high-yield savings accounts, including My Banking Direct — the top account we track — which dropped its APY from 5.45% to 5.35%.

Here’s where savings rates stand compared to last week:

Everything you should consider before opening a savings account 

Your money will grow faster in a high-yield savings account than in a traditional savings account thanks to their higher returns. But you should consider more than just the APY before opening a HYSA. Weigh these 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, from $25 to $100. Others don’t require 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 fee reimbursements or a wide range of in-network ATMs, said Mohip.
• Fees: Look out for fees for monthly maintenance, withdrawals and paper statements, said Mohip. The charges can eat into your balance.
• Accessibility: If you prefer in-person assistance, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider an online bank.
• Withdrawal limits: Some banks charge an excess withdrawal fee if you make more than six monthly withdrawals. If you think you may need to make more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is either insured with the FDIC or the NCUA. This way, your money is protected up to $250,000 per account holder, per category, if there’s a bank failure.
• Customer service: Choose a bank that’s responsive and makes it easy to get help with your account if you need it. Read online customer reviews and contact the bank’s customer service to get a feel for working 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 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 compares 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 rank higher for offering any of the following perks:

• Account bonuses
• Automated savings features
• Wealth management consulting/coaching services
• Cash deposits
• Extensive ATM networks and/or ATM rebates 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 helpful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.