Best Savings Rates Today -- Act Now to Earn up to 5.55% APY, May 1, 2024

Experts expect the Federal Reserve to hold rates steady at today’s Federal Open Market Committee meeting, but another unexpected jump in inflation last month could mean interest rate hikes are more likely than cuts later in the year. But whatever the Fed decides, switching to a high-yield savings account today can maximize your interest earnings with up to 5.55% annual percentage yield, or APY. 

“When the Fed changes the rates, it impacts everything,” said Lanesha Mohip, a corporate accountant, founder of the Polished CEO and CNET expert review board member. That includes borrowing and savings rates. While taking out a loan or paying back debt may be more expensive, the high rates can also put extra money in your savings. 

Here’s where you can find the top savings accounts and what experts want you to know about opening a high-yield savings account ahead of today’s Fed meeting.

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.

Today’s best savings rates

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

How the Fed impacts savings rates 

The Fed doesn’t directly impact savings rates, but its decisions have ripple effects. For instance, when the Fed raises rates, many banks increase rates for traditional and high-yield savings accounts, said Mohip. Inversely, when the Fed lowers rates, banks drop savings rates, too. But wherever rates stand, you’ll usually earn more yield with a high-yield savings account. 

Currently, you can find high-yield savings accounts offering over 5% APY, but we noticed that some banks are already quietly lowering their rates without warning. For example, Ally’s high-yield savings account rate went from 4.25% down to 4.20% on April 18. But many banks are still holding savings rates steady. 

Experts expected several rate cuts to happen later this year, which would prompt savings rates to follow suit. But the most recent Consumer Price Index report revealed an uptick in inflation, leaving the timeline for future rate cuts unclear. 

“The elevated March inflation numbers have greatly reduced the odds of three Fed rate cuts in 2024,” said Ken Tumin, senior industry analyst at LendingTree. “One or two Fed rate cuts still look probable in the second half of 2024.”

However, some economists predict that rate cuts are now less likely to happen in 2024 unless inflation begins trending downward soon. Either way, you can expect high savings rates to stick around for the foreseeable future.

Why high-yield savings account rates fluctuate 

Banks can change the interest rates on savings accounts at any time. Since savings rates are variable, your APY will likely go down once the Fed drops rates. But for now, many banks are holding rates steady in anticipation of what the Fed will do next. Based on CNET’s weekly tracking, here’s where rates stand compared to last week:

The average APY for the top high-yield savings accounts we track at CNET is 4.88% -- with some accounts offering as high as 5.55%. That’s more than 10 times the national average of 0.46%. 

Top reasons to open a high-yield savings account today 

Earning a high interest rate on your savings is great, but having money available for future goals and emergencies is even more important. You may open a high-yield savings account to get into the habit of saving with regular automatic contributions toward your emergency or sinking fund as a set-it-and-forget-it method. It could also be a good place to stash monetary windfalls, such as your tax refund. Here’s what else makes HYSAs stand out:

• High rates: HYSAs often have APYs 10 times higher (or more) than the national average, as tracked by the Federal Deposit Insurance Corporation.
• Low or no fees: Monthly maintenance fees can eat into your savings. Many online banks can charge low or no fees thanks to their lower operating costs.
• Liquidity: You can access money in your HYSA anytime without penalty (as long as you mind any withdrawal limits). 
• Accessibility: If you open an HYSA at an online bank, you’ll have 24/7 access through its mobile app. You may also have lots of customer service options, including by phone, online chat and secure messaging.
• Low risk: HYSAs are protected by federal deposit insurance if they’re held at an FDIC-insured bank or credit union insured by the National Credit Union Administration. That means your money is safe up to $250,000 per account holder, per account type.

Factors to consider when choosing a high-yield savings account 

• 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.