High-Yield Savings Account Rates Top 5% APY Following Fed Rate Pause, Aug. 2, 2024

If you have extra funds sitting in a traditional savings account, you’re leaving money on the table. The best high-yield savings accounts offer rates more than 10 times the national average, with top accounts earning annual percentage yields as high as 5.45%. 

But the clock is ticking. The Federal Reserve’s latest rate pause follows three months of cooling inflation, leaving experts to believe rate cuts could begin as soon as September. 

“By September, the Fed will have more data to make a call,” said Andrew Latham, a certified financial planner. “If things look stable, they might ease up. Until then, it’s a guessing game.”  

Once the Fed lowers rates, it’s likely that savings account rates will slowly start to fall. So, if you’re ready to grow your emergency fund or start a sinking fund, now’s the time to take advantage of high rates to maximize your interest earnings.

Here are CNET’s picks for the banks offering the best savings account interest rates right now. 

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 decisions affect savings rates

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 have ripple effects.

“When the Fed opts to drop rates, consumers can expect the annual percentage yield on their savings accounts to decrease,” said Justin Haywood, certified financial planner and President and co-founder of Haywood Wealth Management. Inversely, when the Fed raises the federal funds rate, banks tend to increase their rates for savings accounts to boost their cash reserves and remain competitive.

“This is because the Fed controls short-term interest rates, which directly influence the rates offered by banks on savings accounts,” said Haywood. 

Starting in March 2022, the Fed raised rates 11 times to fight record inflation. However, as inflation began cooling in late 2023, the Fedpaused rates at its last eight 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. Over the past few weeks, we’ve seen My Banking Direct, Laurel Road, TAB Bank, Rising Bank and UFB Direct lower rates on their high-yield savings accounts.

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

Factors to weigh before choosing a high-yield savings account 

It pays to look for accounts with attractive APYs. But don’t stop there. Weigh these important factors 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 reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of the Polished CFO and CNET expert review board member. 
• 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.