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- The best high-yield savings accounts still offer more than 4% APY, but some banks are already cutting rates.
- If the Federal Reserve cuts rates next week, savings rates could fall even further as we head into the new year.
- Despite falling rates, experts recommend storing money for short-term goals in a high-yield savings account for easy access.
There’s still time to boost your savings with one of the best high-yield savings accounts. But even if rates drop, a savings account can still help you reach your financial goals.
Opening a HYSA is an easy way to earn interest on money you may need to access quickly, like an emergency fund. But our CNET Money expert and Save My Cents founder Shang Saavedra also loves that having a separate account can help you avoid spending your money unnecessarily.
“The psychological trick of these accounts is that it is money that is not on your mind,” Saavedra said. “Most people pay attention to how much money is in their checking account, but not so much in their savings accounts.”
If you set up automatic deposits into your account, the savings can really add up. This is where your money can earn the most interest as you work toward your savings goal.
Today’s best savings rates
| Bank | APY* | Minimum deposit to open |
|---|---|---|
| Precautionary | 5.00%** | $0 |
| Newtek bench | 4.90% | $0 |
| Loan club | 4.75% | $0 |
| EverBank | 4.75% | $0 |
| Basque Bank | 4.65% | $0 |
| Path of laurels | 4.50% | $0 |
| Sync Bank | 4.10% | $0 |
| American Express | 3.90% | $0 |
| capital one | 3.80% | $0 |
Experts recommend comparing rates before opening a savings account to get the best APY possible. Enter your information below to get the best rate from CNET partners for your area.
Savings rates could fall slightly after next week’s Fed meeting
The Federal Reserve will meet on December 17-18 and most experts anticipate another 25 basis point rate cut.
If the Federal Reserve chooses to cut, most savings rates are expected to fall in the coming weeks. But that doesn’t mean you’ll see the rate on your high-yield savings account drop right away.
“While it’s true that Federal Reserve decisions influence HYSAs, not all institutions adjust their rates immediately and some can wait to remain competitive,” said Steven Kibbel, certified financial planner and founder and CEO of Kibbel. Financial Planning.
So, if a bank is looking to attract new customers, it could actually increase its savings rates to encourage people to sign up for a new account.
Why a HYSA is still a smart choice for your savings
Experts agree that high-yield savings accounts are the best places to stash money for short-term goals. They are 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.
Think of the interest you earn as an added bonus. “Overall, HYSAs remain a smart choice for savers,” Kibbel said. “Especially if accessibility and safety are prioritized, although it is always advisable to monitor rate trends.”
Even if high-yield savings accounts continue to decline, you will still earn more interest than with a traditional savings account with an APY close to 0%. High-yield savings accounts still offer rates more than 10 times those national average.
“In a falling interest rate environment, it remains valuable for people to store cash for short-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 earmarked for long-term savings, you might consider locking up a certificate of deposit while rates are high.
Compare the latest savings rates
| CNET average savings APY* from last week | This Week’s CNET Average Savings APY | weekly change |
|---|---|---|
| 4.41% | 4.36% | -1.15% |
7 factors to weigh before opening a high-yield savings account
When deciding which account and bank are best for your savings, here’s what to look for:
- Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, typically between $25 and $100. Others require nothing.
- ATM access: Not all banks offer cash deposits and withdrawals. If you need regular access to ATMs, check to see if your bank offers ATM fee reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of Polished CFO and expert review board member of CNET.
- Fee: Be on the lookout for monthly maintenance fees, withdrawals and paper statements, Mohip said. Charges may affect 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 excessive withdrawal fee 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 FDIC or NCUA insured. This way, your money is protected up to $250,000 per account holder, per category, in the event of the bank’s bankruptcy.
- Customer service: Choose a bank that is responsive and makes it easy to get help with your account if you need it. Read customer reviews online and contact the bank’s customer service to get an idea of how to work with the bank.
Methodology
CNET reviewed savings accounts at more than 50 banks, credit unions, and traditional and online financial institutions with services nationwide. Each account received a score between one (lowest) and five (highest). All savings accounts listed here are 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 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 be ranked higher for offering any of the following benefits:
- Account Bonuses
- Automated savings features
- Wealth management consulting/coaching services
- Cash deposits
- Extensive ATM networks and/or ATM reimbursements for out-of-network ATM use
A savings account may have a lower rating if it doesn’t have an easy-to-navigate website or if it doesn’t offer useful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*APY as of December 11, 2024, based on banks we track at CNET. Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.
**Varo offers 5% APY only on balances less than $5,000
