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- The best high-yield savings accounts still offer over 4% API, but some banks are already cutting rates.
- If the Fed cuts rates next week, savings rates could fall further as we head into the new year.
- Despite the rate drop, experts recommend keeping money for short-term goals in a high-yield savings account for easy access.
You still have time to increase your savings with one of the the best high yield savings accounts. But even if rates fall, a savings account can still help you reach your financial goals.
Opening a HISA is an easy way to earn interest on money you may need to access quickly, for example contingency fund. But our CNET Money expert and founder of Save My Cents Shang Saavedra also love that a separate account can help prevent you from wasting your supplies unnecessarily.
“The psychological trick with these accounts is to keep money out of your mind,” Saavedra said. “Most people pay attention to how much money is in their checking account, but not so much in their savings accounts.
If you set up automatic deposits in your account, the savings can really add up. Here’s where your money can earn the most interest as you work toward your savings goal.
Today’s best savings rates
| Bank | API* | Min. opening deposit |
|---|---|---|
| Precautions | 5.00%** | $0 |
| Newtek Bank | 4.90% | $0 |
| LendingClub | 4.75% | $0 |
| EverBank | 4.75% | $0 |
| Bask Bank | 4.65% | $0 |
| Laurel Road | 4.50% | $0 |
| Synchrony Bank | 4.10% | $0 |
| American Express | 3.90% | $0 |
| Capital One | 3.80% | $0 |
Experts recommend comparing rates before opening a savings account to get the best possible API. Enter your information below to get the best price from CNET’s partners in your area.
Savings rates could fall slightly after the Fed’s meeting next week
The Federal Reserve meets on December 17-18, and most experts expect another rate cut of 25 basis points.
If the Fed decides to cut, most savings rates are expected to fall in the coming weeks. But that doesn’t mean you’ll immediately notice a drop in your high-yield savings account rate.
“While it’s true that HISAs are affected by the Fed’s decisions, not all institutions adjust their rates immediately, and some may opt out to remain competitive,” said Stephen Kibel, certified financial planner and founder and CEO of Kibbel Financial Planning.
So if a bank wants to attract new customers, it could raise savings rates to encourage people to sign up for a new account.
Why a HISA is still a smart choice for your savings
Experts agree that high-yield savings accounts are the best place to keep money for short-term goals. They are federally insured up to $250,000 per account type and bankand most offer easy access to your money if you need to withdraw it quickly.
Think of the interest you earn as an added bonus. “Overall, HISAs remain a smart choice for savers,” Kibbel said. “Especially if you’re prioritizing affordability and security, though it’s always wise to monitor rate trends.”
Even if high-yield savings accounts continue to decline, you’ll still earn more in interest than you would with a traditional savings account with nearly 0% API. High-yield savings accounts still offer rates that are more than 10 times higher national average.
“In a falling rate environment, it’s still valuable for people to keep cash for short-term needs — think emergency funds, checking accounts and savings for short-term goals — in high-yield accounts with competitive APIs,” said Alex Michalka, vice president of investment research. at Wealthfront.
If you have money earmarked for long-term savings, think again lock in certificate of deposit while rates are high.
Compare the latest savings rates
| Last week’s CNET average savings API* | This week’s CNET average savings API | Weekly change |
|---|---|---|
| 4.41% | 4.36% | -1.15% |
7 factors to consider before opening a high-yield savings account
When deciding which account and bank is best for your savings, here’s what you should pay attention to:
- Minimum Deposit Requirements: Some HISAs require a minimum amount to open an account, usually between $25 and $100. Others need nothing.
- 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 reimbursement or a wide range of in-network ATMs, said Lanesha Mohip, founder of Polished CFO and a member of CNET’s expert review board.
- Fees: Watch out for monthly maintenance fees, withdrawals and paper statements, Mohip said. Charges can affect your balance.
- Accessibility: If you prefer personal 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 withdraw for more than six months. 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 FDIC or NCUA insured. This way, your money is protected up to $250,000 per account holder, per category, in the event of bankruptcy.
- Customer Service: Choose a bank that is responsive and allows you to easily get help with your account if you need it. Read customer reviews online 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 services nationwide. 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 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 rank higher if it offers any of the following benefits:
- Bonus on the account
- Automatic savings functions
- Wealth management consulting/coaching services
- Cash deposits
- Wide ATM networks and/or ATM discounts for using out-of-network ATMs
A savings account may be rated lower if it doesn’t have an easy-to-navigate website or if it doesn’t offer useful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*API as of December 10, 2024 based on the banks we track at CNET. Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.
**Varo offers 5% API only on balances less than $5,000
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