Today’s Best Savings Rates, Jan. 16, 2024: Earn Over 10 Times the National Average

Savings are an essential part of any financial plan. Putting money aside for the future allows you to cover unexpected expenses and pay for upcoming purchases without taking on debt. But where you keep your savings can make a big difference in how fast your money grows.

Annual percentage yields, or APYs, for savings accounts vary greatly from bank to bank. While top high-yield savings accounts currently boast APYs as high as 5.35%, some traditional savings accounts offer a paltry 0.5% or lower. By doing your research, you can boost your earnings significantly. Read on to see some of the best savings account rates available today and where to find them.

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:

Savings rates have leveled out

Throughout 2022 and 2023, savings rates skyrocketed as the Federal Reserve raised interest rates to fight inflation. But savings rates plateaued at the end of 2023 as the Fed paused rate hikes three times in a row. And many experts believe the Fed will start to lower 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, Esq, 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.”

That said, APYs on the highest-yielding savings accounts remain attractive. Here’s where they stand compared to last week:

The average APY for the top high-yield savings accounts we track at CNET is 4.87%. That’s more than 10 times greater than the national average of 0.46% reported by the FDIC. This difference can add up when you consider that savings accounts earn compound interest -- in other words, you earn interest not only on your principal balance but also on the interest you’ve earned to date.

Why you shouldn’t wait to open a high-yield savings account

The sooner you open a savings account, the longer you’ll be able to enjoy high rates. Even after rates fall, high-yield savings accounts will continue to offer significantly better APYs than traditional ones. So, don’t let anticipated rate drops stop you from making the switch. Opening an HYSA can be a smart strategy in any rate environment.

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. 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 requirements: 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.
• Fees: Monthly maintenance and other 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 with 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: Look for 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 in the event of bank failure
• Customer service: You want a bank that’s responsive and offers convenient support options if you ever need assistance with your account. Read online customer reviews to see what current customers say about their experiences. You can also contact customer service to get a feel for what it would be like to work 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 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