Is It the Last Hurrah for High APYs? Don’t Wait to Find Out

Savings rates have been attractive for the last two years. But with inflation showing signs of cooling, experts expect the Federal Reserve will cut rates at least once before the end of 2024. That means the best high-yield savings accounts — which currently offer annual percentage yields, or APYs, as high as 5.45% — have likely plateaued. 

“Now is a good time for savers to open a high-yield savings account before rates potentially drop,” said Justin Haywood, certified financial planner and President and co-founder of Haywood Wealth Management. “It’s important for consumers to take advantage of current high rates to maximize their savings returns while the favorable conditions last.”

Read on to learn where you can find today’s top savings rates. 

Today’s best savings rates

Here are some of the top savings account APYs available right now:

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.

How the Fed’s rate policy impacts savings accounts 

Savings rates are variable, which means banks can change the rate on your savings account at any time. The Federal Reserve doesn’t directly impact savings rates, but its decisions do impact them.

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 to boost their cash reserves and remain competitive. Inversely, when the Fed lowers rates, banks drop savings rates, too.

Starting in March 2022, the Fed raised rates 11 times to fight record inflation. However, as inflation began cooling in late 2023, the Fed paused rates at its last seven Federal Open Market Committee meetings. As a result, savings rates remained attractive, barely budging for months.

But experts expect the Fed could begin cutting rates as early as September. And we’re already starting to see banks lower APYs in anticipation. My Banking Direct dropped its high-yield savings account APY from 5.55% to 5.45% on July 12, and TAB Bank dropped its rate from 5.27% to 5.02% on July 17.

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

How to find the right savings account 

It pays to look for accounts with attractive APYs. But don’t stop there. Other important factors you should consider before choosing a savings account include:

• 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 reimbursements 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.