Today’s Best Savings Rates – With interest rate cuts coming, now is the time to take advantage of high APRs

The sooner you open a high-yield savings account, the greater your earning potential. While annual yields remain high, we’ve seen banks falter over the past few weeks as they anticipate the Fed’s next moves. The Federal Reserve chose to keep interest rates unchanged at last week’s meeting, but banks continued to quietly cut annual interest rates.

Top HYSA is offering a whopping 5.35% APY today, but that’s down from last week’s high of 5.45%. We may see further declines in APY after the Fed hinted at a rate cut in September, while the weak labor report has some economists calling for an earlier rate cut. Therefore, opening a HYSA today will allow you to maximize your returns while interest rates remain high.

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

Today’s Best Savings Rates

Here are some of the top savings account APRs currently available:

Experts recommend comparing interest rates before opening a savings account to get the best possible APR. You can enter your message below to see rates from CNET partners in your area.

Why interest rates are starting to fall

The Fed does not directly affect savings rates, but its decisions do have knock-on effects. When the central bank meets, it assesses the U.S. economy and may adjust the federal funds rate to help boost growth or slow inflation. Banks tend to follow, raising or lowering short-term interest rates based on how the Fed votes.

After last week’s Federal Open Market Committee meeting, Fed Chairman Powell noted that a rate cut “will likely be discussed at the September meeting.”

Since March 2022, the Federal Reserve has raised interest rates 11 times to combat record inflation. As inflation began to cool at the end of 2023, the Fed paused raising interest rates. As a result, savings rates remain attractive and have remained high for several months.

There are three meetings left this year, and some experts predict that the Fed may still cut interest rates multiple times in 2024. In the past few weeks, we’ve seen My Banking Direct, Laurel Road, TAB Bank, Rising Bank and UFB Direct cut interest rates on their high-yield savings accounts. Just this week, the top account we track – My Banking Direct – saw its APR fall from 5.45% to 5.35%.

Here’s how the savings rate compares to last week:

What to consider when 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 meets your financial goals:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account – usually $25 to $100. Others don’t need anything.
• ATM deposits and withdrawals: Not every bank offers cash deposits and withdrawals. If you need to use an ATM regularly, check to see if your bank offers ATM fee reimbursement or a variety of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and a member of CNET’s Expert Review Board.
• cost: Be aware of the fees for monthly maintenance, withdrawals and paper statements, Mohip said. These fees drain your balance.
• Auxiliary functions: If you prefer face-to-face help, look for a bank with physical branches. If you’d rather manage your money digitally, consider online banking.
• Withdrawal limits: Some banks charge an excess withdrawal fee if you make monthly withdrawals for more than six months. If you think you might need to make more money, consider a bank that doesn’t have this restriction.
• Federal Deposit Insurance: Make sure your bank or credit union is insured through the FDIC or NCUA. This way, if a bank fails, up to $250,000 per account holder and per category of funds is protected.
• customer service: Choose a bank that is responsive and makes it easy to get account assistance when you need it. Read online customer reviews and contact the bank’s customer service to get an idea of ​​what it’s like to work with the bank.

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CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions offering services nationwide. Each account has a score between 1 (lowest) and 5 (highest). The savings accounts listed here are insured by the FDIC or NCUA up to $250,000 per person, per account category, and per institution.

CNET evaluates the best savings accounts using a set of established criteria that compare annual yield, monthly fees, minimum deposits or balances and access to physical branches. None of the banks on our list charge monthly maintenance fees. Accounts that offer any of the following benefits will be ranked higher:

• Account bonus
• Automatic saving function
• Wealth Management Consulting/Counseling Services
• Cash deposit
• Extensive ATM network and/or ATM rebates used at out-of-network ATMs

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