Today’s Best Savings Rates, Dec. 21, 2023: APYs Are as High 5.35%, but That Won’t Last Forever 

Traditional savings accounts generally offer insignificant savings rates in line with the Federal Insurance Corporation’s national average of 0.46%. But don’t settle for a paltry rate when your savings could benefit from the power of a high-yield savings account. 

“A high-yield savings account is a great place to keep your emergency savings [and] short-term goals so that it is safe and accessible in case you need to use it but can still earn some interest,” said Kendall Meade, a certified financial planner at SoFi. 

High-yield savings accounts often have annual percentage yields, or APYs, more than 10 times the FDIC’s national average. And right now, the best high-yield savings accounts earn over 5% APY. If you have extra cash sitting stagnant in a checking or savings account, now is a great time to take advantage of these elevated savings rates while they’re still around.

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:

Where savings rates stand today

The average APY for the top high-yield savings accounts we track at CNET is 4.87%. We haven’t seen any major changes since last week’s Federal Reserve meeting. The only individual change we saw this week was Marcus by Goldman Sachs’s high-yield savings account, which increased its rate from 4.4% to 4.5% yesterday. 

Banks tend to raise interest rates on consumer products such as savings accounts and CDs when the Fed raises its benchmark federal funds rate, both to remain competitive and attract new customers to boost their cash flow. And for the last two years, high-yield savings account rates have been trending upward as the Fed raised interest rates 11 times to fight inflation. 

Last week, the Fed opted to pause rate hikes for the third consecutive time since July. Here’s where savings APYs stand compared with last week:

Although the Fed opted to pause rate hikes at last week’s FOMC meeting, savings rates are likely to remain high into next year. Still, some experts predict rates will begin to drop in mid-to-late 2024. 

“For right now, I don’t expect there to be any changes in interest rates,” said Christopher M. Naghibi, executive vice president at First Foundation Bank. “Since the Fed won’t be increasing rates, I think we are at [the] top of the market for deposit rates no matter what happens.”

The sooner you open a high-yield savings account, the longer you’ll be able to enjoy high rates. Once the Fed lowers interest rates, APYs on high-yield savings accounts won’t be as high.

Why you should open a high-yield savings account

High-yield savings accounts typically offer higher APYs than traditional savings accounts. Many HYSAs are provided by online-only banks, which often have lower overhead costs than traditional banks with physical locations to maintain. They pass these savings on to customers through competitive APYs and other perks.

Here’s what 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). CDs, another popular savings product, charge a penalty if you take out funds before the term is up.
• Accessibility: If you open an HYSA at an online bank, you’ll enjoy 24/7 account 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.

If you’re earning less than 1% with your current savings account -- some big banks offer as little as 0.01% APY -- you don’t have to close your existing account to enjoy higher rates. Instead, you can open a new account from an online bank in minutes and set up recurring transfers or direct deposits to start funding it.

What to look for in a high-yield savings account

In addition to APY, you should also weigh the following when comparing savings accounts:

• Minimum deposit: Some HYSAs require a minimum amount to open an account -- typically, from $25 to $100. Others don’t require anything. How much you have to deposit initially can help you narrow down your options.
• Monthly fees: Fees can eat into your balance. Avoid unnecessary charges by looking for a bank with low or no fees.
• Accessibility: If in-person banking is important to you, look for a bank with physical branches. If you’re comfortable managing your money digitally, look for an online bank with a user-friendly app that has all the features you need.
• 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: To protect your money, choose a bank that belongs to the Federal Deposit Insurance Corporation or a credit union that belongs to the National Credit Union Administration. Accounts at these institutions are protected up to $250,000 per account holder, per category.
• Customer service: If you run into any problems with your account, you want a bank that’s responsive and offers convenient support options. Read online customer reviews to see what current customers think about their experiences.

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 Federal Deposit Insurance Corporation or National Credit Union Administration.

CNET evaluates the best savings accounts with 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

An account will rank lower if it doesn’t have a professional-looking website or doesn’t provide an ATM card, or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.

Savings accounts researched

Alliant Credit Union, Ally, Amerant, America First FCU, American Express, Apple Federal Credit Union, Bank of America, BankPurely, Barclays, Bask Bank, Bellco Credit Union, Bethpage, BMO Alto, BMO Harris, Bread Savings, Capital One, Chase, CIBC Bank, CIT Bank, Citizens, Citizens Bank, Community Wide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Discover, Dollar savings Direct, First Internet Bank of Indiana, Forbright, Laurel Road, LendingClub, Marcus by Goldman Sachs, My Banking Direct, Newtek Bank, Panacea Financial, PenFed Credit Union, PNC, Popular Bank, Quontic Bank, RBMax, Rising Bank, SoFi, Synchrony, TAB Bank, TIAA Bank, U.S. Bank, UFB Direct, Upgrade Premier, Varo, Wells Fargo