Best Savings Rates Today -- Earn APYs 15X the New National Average, July 17, 2024 (2024)

High-yield savings accounts provide a greater return on your savings than traditional savings accounts. And this week, savers can expect more relief in a period of high inflation.

The FDIC average national savings rate dropped to 0.36% on Monday after months of hovering around 0.46%. Luckily, top high-yield savings accounts still boast annual percentage yields, or APYs, up to 5.45% -- roughly 15 times the new national average. But with savings rates likely at their peak, the sooner you open a HYSA, the more interest you’ll earn.

“Although it is never a bad time for investors to earn a higher rate of return, those considering an insured high-yield savings account should be aware that, as the Fed cuts rates, [rates] on investments such as high-yield savings accounts and money market funds will fall almost in lockstep,” said Ed Mahaffy, president and senior portfolio manager at ClientFirst Wealth Management.

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:

The Fed’s influence on savings rates

The Fed doesn’t directly impact savings rates, but its decisions have ripple effects on the everyday consumer.

When the Fed raises the federal funds rate -- the interest rate US banks use to lend or borrow money to each other overnight -- banks tend to increase their rates for savings accounts. Inversely, when the Fed lowers rates, banks drop savings rates, too.

Keep in mind savings rates are variable, which means banks can change the rate on your savings account at any time.

When will savings rates drop?

Starting in March 2022, the Fed raised rates 11 times to fight record inflation. However, as inflation began to show signs of cooling in late 2023, the Fed opted to maintain its target range of 5.25% to 5.5% at its last seven Federal Open Market Committee meetings. As a result, savings rates have remained attractive, barely budging as banks await the Fed’s next move. My Banking Direct cutting its high-yield savings account APY from 5.55% to 5.45% on July 12 was the first change we’ve seen to the accounts we track since May 31.

Experts anticipate rate drops before the end of the year, which means savings rates are likely to drop, too. While some expect rate drops as soon as the end of July (when the Fed next meets), others are hesitant to say a rate cut could happen that soon.

“I expect the Fed to begin cutting rates at the September meeting,” said Justin Haywood, certified financial planner and president and co-founder of Haywood Wealth Management. “If the labor market continues to cool, we might see two rate cuts by the end of the year. The recent jobs report supports the view that economic conditions are cooling, and this could firm up expectations for a September rate cut. Several Fed officials have already hinted at potential cuts in 2024, with a plurality favoring two cuts within the year if current economic trends continue.”

Based on CNET’s weekly tracking, here’s where rates stand compared to last week:

Top high-yield savings account perks

High-yield savings accounts provide a low-risk way to grow your savings while taking advantage of compound interest. Compound interest can help your money grow faster because you aren’t just earning interest on your initial deposit -- your interest also earns interest.

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.

What else to consider before opening a savings account

A high APY is important, but you should consider more than just the rate before choosing an HYSA.

“Some accounts have mandatory minimums, transaction fees or other charges you might not expect,” said Ben McLaughlin, chief marketing officer and president of digital savings marketplace Raisin. “These hidden fees can chip away at your savings, so be sure you are satisfied with the terms and conditions before opening an account.”

Consider the following to find an account that complements your financial goals:

• 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 reimbursem*nts or a wide range of in-network ATMs.
• Fees: Look out for fees for monthly maintenance, withdrawals and paper statements. These 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.