Best Savings Rates Today -- Don’t Wait to Maximize Your Interest Earnings, April 29, 2024

All eyes are on this week’s Federal Open Market Committee meeting and where rates will go next. 

When the Federal Reserve started pushing the federal funds rate to fight record-high inflation in March 2022, savers started to reap the benefit of high savings rates -- with some over 5%. 

“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. 

But since July 2023, the federal funds rate has held at its target range of 5.25% to 5.5%, indicating to experts that savings rates are likely at their peak. Some savings rates are still this high -- even after five consecutive rate hike pauses. 

Here’s the 411 on where savings rates stand now and what experts want you to know about opening a high-yield savings account on the brink of another Fed meeting.

Experts recommend comparing rates before opening a savings account to get the best annual percentage yield, or 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 annual percentage yields, or APYs, available for savings accounts right now:

The state of savings rates today

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

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, Mohip said. Inversely, when the Fed lowers rates, banks will drop savings rates too. But you’ll usually earn more yield with a high-yield savings account. 

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.

How often do savings rates change? 

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 a look at how savings rates 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%. 

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

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 money that you inherit, 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 FDIC average.
• 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 NCUA-insured credit union. That means your money is safe up to $250,000 per account holder, per account type.

What to look for in 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, Mohip said. 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 Federal Deposit Insurance Corporation or the National Credit Union Administration. 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 editors review 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 Federal Deposit Insurance Corporation or National Credit Union Administration.

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.