You can still find savings rates above 5%, but these probably won’t last. Today’s daily savings rates, November 27, 2024

The top high-yield savings accounts still produce annual percentage yields (APYs) that are more than 10 times the national average, but that may not last. The Fed meets next month and could cut interest rates again. So take advantage of this opportunity to maximize your earnings while you can.

If the Fed cuts interest rates, as some experts predict, the APY you earn on your high-yield savings account will likely fall as well.

Only a handful of banks on our list currently have APYs above 5%, while the rest have fallen to 4.75% or lower – some are even below 4%. However, compared to the paltry interest rates offered by traditional savings accounts, high-yield savings accounts can still help you grow your money, making them ideal for building an emergency fund or sinking fund.

Here are some of the best savings account APYs currently available:

Experts recommend comparing interest rates before opening a savings account to get the best possible APR. Enter your information below to get the best rate from CNET partners for your region.

How the Fed Affects Your APR

Due to cooling inflation and a slight increase in unemployment, the Fed began cutting interest rates in September. Since then, savings account APYs have steadily declined.

To be clear, the Fed does not directly set interest rates on consumer items like high-yield savings accounts and certificates of deposit, but its policies have far-reaching effects.

When the Fed raises interest rates — as it has done 11 times in recent years to combat high inflation — banks tend to raise their annual percentage rates. When the Fed lowers interest rates, banks also tend to lower their APRs.

“While it is true that HYSAs are influenced by the Fed’s decisions, not all institutions adjust their interest rates immediately, and some may hold off to remain competitive,” said Steven Kibbel, certified financial planner and founder and CEO of Kibbel Financial Planning. “This means HYSAs continue to be a reliable option for keeping your money liquid while earning more than other low-risk alternatives.”

After the Fed made its first rate cut of the year in September, many banks tracked by CNET began cutting their savings account rates. For example, LendingClub lowered its APR from 5.30% to 5.15% on October 18, ending its streak as our top HYSA. On November 7th, it lowered it even further to 5.00% APY. Now the APR has dropped to 4.75%.

Despite a slight increase in inflation in October, a third rate cut in December cannot be ruled out. The Federal Reserve also considers other data points, such as the unemployment rate. If the Fed cuts rates by another quarter of a percentage point in December, as some expect, APYs would likely fall even more.

Fortunately, top savings accounts still offer interest rates well above the national average. But don’t wait too long to secure a great price. Here’s what the savings rates are at the beginning of this week compared to the beginning of last week:

Don’t sleep on opening a high-interest savings account

While there is some uncertainty about whether interest rates will fall or remain stable after next month’s Fed meeting, a HYSA still offers a lot of value.

“In a declining interest rate environment, it is still valuable for people to keep cash for short-term needs – think emergency funds, bills and savings for short-term goals – in high-yield accounts with competitive APRs,” said Alex Michalka. Vice President of Investment Research at Wealthfront.

The main difference between using a HYSA for your emergency funds and a CD or bond is that you can access the funds quickly without incurring a penalty. CDs and bonds are better savings tools for your long-term financial plans.

Choosing a high-yield savings account doesn’t have to be difficult

Choosing financial products can seem challenging or complicated, but it doesn’t have to be.

Focus less on chasing high interest rates and more on what the product can do for you. Getting a solid interest rate on an emergency fund while providing liquidity may be more important than going to the trouble of earning half a percentage point more at another bank. The account continues to provide liquidity, so you can access the money when you need it – even if you earn less interest.

“Overall, HYSAs remain a smart choice for savers,” Kibbel said. “However, especially if you prioritize accessibility and safety, it is always wise to monitor fare trends.”

When deciding which account and bank is best for your savings, you should pay attention to the following:

• Minimum deposit requirements: Some HYSAs require a minimum account opening amount, usually between $25 and $100. Others require nothing.
• ATM access: Not every bank offers cash deposits and withdrawals. “If you need regular ATM access, check whether your bank offers ATM fee reimbursement or a wide selection of in-network ATMs,” said Lanesha Mohip, founder of Polished CFO and CNET Expert Review Panel member.
• Fees: Watch out for fees for monthly maintenance, withdrawals and paper statements, Mohip said. The fees may affect your balance.
• Accessibility: If you prefer in-person support, look for a bank with physical branches. If you like 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 earn more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is insured by either the FDIC or NCUA. This way, in the event of a bank failure, your money is protected up to $250,000 per account holder per category.
• Customer service: Choose a bank that is responsive and makes it easy for you to get help with your account when 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 serving nationwide. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all FDIC or NCUA insured up to $250,000 per person, per account category, and per institution.

CNET evaluates the best savings accounts based on a set of established criteria that compare annual percentage returns, 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 receive a higher rank if it offers any of the following benefits:

• Account bonuses
• Automated savings features
• Advice/coaching in the area of ​​asset management
• Cash deposits
• Extensive ATM networks and/or ATM discounts for out-of-network ATM use

A savings account may be rated lower if it doesn’t have an easy-to-navigate website or doesn’t offer helpful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also receive lower ratings.

*APYs as of November 26, 2024, based on the banks we track at CNET.
**This week’s APY as of November 25, 2024. Based on the banks we track at CNET.
***Weekly percentage increase/decrease from November 18, 2024 to November 25, 2024.

More savings tips: