Want to maximize your savings? Then it’s time to move your money to a high-yield savings account. The best high-yield savings accounts offer rates more than 10 times the national average, enabling you to grow your money faster thanks to the magic of compound interest.
Savings rates have been attractive for the past couple of years, but with the Federal Reserve expected to cut rates in the coming months, now’s the time to move your money to an HYSA. Once the Fed drops rates, your interest rate is likely to drop, too.
“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.”
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.
Here are some of the top savings account APYs available right now:
| Bank | APY | Min. deposit to open |
| My Banking Direct | 5.45% | $500 |
| TAB Bank | 5.02% | $0 |
| Newtek Bank | 5.25% | $0 |
| UFB Direct | 5.25% | $0 |
| Synchrony Bank | 4.75% | $0 |
| Capital One | 4.25% | $0 |
| Discover Bank | 4.25% | $0 |
| Ally Bank | 4.20% | $0 |
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:
|
CNET average savings APY |
Weekly change* |
FDIC average |
|
| 4.86% | -0.21% | 0.45% |
*Weekly percentage increase/decrease from July 8, 2024, to July 15, 2024.
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.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.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 useA 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.