Best Savings Rates Today -- Act Now to Maximize Your Interest Earnings, May 14, 2024 (2024)

If you’re earning less than a 3% annual percentage yield, or APY in a traditional savings account, you’re not maximizing your interest-earning potential.

Savings rates took off in 2022 when the Federal Reserve began raising interest rates to fight record inflation. But after six consecutive rate hike pauses, savings rates are likely at their peak. However, there’s still time to earn a competitive APY. The best high-yield savings accounts earn APYs up to 5.55% -- more than 10 times the national average of 0.46%. And even if the rate environment shifts in the next several months, a HYSA can always be a smart savings strategy.

Read on to learn more about today’s top rates.

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:

How long will savings rates stay high?

Savings rates remain high following the Federal Reserve’s latest decision to keep the federal funds rate at a range of 5.25% to 5.50%. This is good news for savers as the APYs for the top high-yield savings accounts will likely remain elevated. However, most experts believe savings rates have reached their peak.

The best high-yield savings accounts currently earn APYs up to 5.55%, but some banks are already quietly lowering their rates. For example, Ally decreased its high-yield savings account rate from 4.25% down to 4.20% on April 18, and CIT Bank decreased its rate from 5.05% to 5.00% on May 3. 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.

“There is still hope for rate cuts in 2024,” said Elaine King, a certified financial planner. However, before the most recent inflation report revealed an uptick in inflation, the expectation pointed toward several possible rate cuts this year, she added. “[But] with inflation rising, the expectation is that there may be only one rate cut, and the majority of reports point to July.”

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?

The Fed doesn’t directly impact savings rates, but its decisions have ripple effects. For instance, when the Fed raises rates, many banks increase their rates for traditional and high-yield savings accounts, said Lanesha Mohip, a corporate accountant, founder of the Polished CEO and CNET expert review board member. Inversely, when the Fed lowers rates, banks drop savings rates, too. But wherever rates stand, you’ll earn more yield with a high-yield savings account than a traditional one.

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 where rates stand compared to last week:

Why now’s the time to take advantage of 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. A high-yield savings account is a great place to park money reserved for your emergency fund or any short-term savings goals. It could also be a good place to stash monetary windfalls, 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 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.

Factors to consider when choosing a high-yield savings account

It makes sense to put a high APY at the top of your search list, but don’t stop there. There are other factors you should consider when choosing the right savings accounts for your savings goals, including the following:

• 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, said Mohip.
• Fees: Look out for fees for monthly maintenance, withdrawals and paper statements, said Mohip. 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 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.