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Today’s Best Savings Rates, Jan. 10, 2024: APYs Remain High at Up to 5.35%

You can grow your money faster with a high-yield savings account.

Savings rates have risen steadily over the past two years in response to the Federal Reserve’s regular rate hikes. And while rates peaked at the end of 2023, they remain attractive. The top high-yield savings accounts available today have annual percentage yields, or APYs, up to 5.35% -- more than 11 times the national average of 0.46%.

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However, unlike certificates of deposit, savings account rates are variable. That means they fluctuate based on the Fed’s actions. And following three rate hike pauses, it’s likely the Fed will lower rates over the course of this year. So, the sooner you open a high-yield savings account, the more interest you could earn on your hard-earned money.

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:

BankAPY*Min. deposit to open
My Banking Direct5.35%$500
TAB Bank5.27%$0
Newtek Bank5.25%$0
UFB Direct5.25%$0
Synchrony Bank4.75%$0
Discover Bank4.35%$0
Capital One4.35%$0
Ally Bank4.25%$0
*APYs as of Jan. 10, 2024, based on the banks we track at CNET.

Where savings rates have been – and where they’re heading

Savings rates have consistently been trending upward ever since the Federal Reserve began raising interest rates in March 2022 to fight inflation. When the Fed raises its benchmark federal funds rate, banks tend to raise rates on consumer products like savings accounts and CDs to remain competitive. 

The Fed’s December Federal Open Market Committee meeting ended with its third consecutive rate pause since July, leading many financial experts to predict that savings APYs have hit their peak. Some experts believe the Fed will start to lower interest rates 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.”

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

CNET Average Savings APY*Weekly Change**FDIC Average
4.87%No change0.46%
*APYs as of Jan. 10, 2024. Based on the banks we track at CNET.
**Percentage increase/decrease from Jan. 2, 2024 to Jan. 8, 2024.

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 month’s Federal Reserve meeting. Most recently, Ally’s high-yield savings account increased its rate from 4.25% to 4.35% on Dec. 22, 2023. But on the whole, rates have held steady.

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.

Benefits of opening a high-yield savings account now

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.

And right now, the best HYSAs earn over 5%. If you have extra cash sitting stagnant in a checking account or you don’t want to lock money up in a certificate of deposit, now is a great time to open a high-yield savings account. 

“A high-yield savings account is a great place to keep your emergency savings as well as 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. 

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.

Factors to consider when comparing high-yield savings accounts

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 Corp. 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

Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.