Right now, high-yield savings accounts offer notably higher annual percentage yields, or APYs, than traditional savings accounts. However, the APY must outpace the current inflation rate of 3.5% to preserve your purchasing power.
The best high-yield savings accounts earn up to 5.55% APY, while some traditional savings accounts offer paltry APYs as low as 0.01%. Over time, you’re eroding your purchasing power with anything less than 3.5%. So, if you’re looking for the best place to stash your emergency fund or start a sinking fund, now’s the time to switch to a HYSA. Rates won’t stay this high forever.
Read on to learn where you can find today’s top savings rates.
Key takeaways
- Top savings account rates are still as high as 5.55% APY.
- Experts expect savings rates to fall later this year when the Fed begins cutting rates.
- Your savings must earn interest at a rate matching or exceeding the current inflation rate of 3.5% to preserve your purchasing power.
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.
Today’s best savings rates
Here are some of the top savings account APYs available right now:
| Bank | APY | Min. deposit to open |
| My Banking Direct | 5.55% | $500 |
| TAB Bank | 5.27% | $0 |
| Newtek Bank | 5.25% | $0 |
| UFB Direct | 5.25% | $0 |
| Synchrony Bank | 4.75% | $0 |
| Capital One | 4.25% | $0 |
| Discover Bank Ally Bank | 4.25% 4.20% | $0 $0 |
Where are savings rates heading next?
High-yield savings rates took off in 2022 when the Federal Reserve began raising interest rates to combat record inflation. But since July 2023, the federal funds rate has held at its target range of 5.25% to 5.5%, indicating to experts that savings rates are likely at their peak.
The Fed doesn’t directly affect savings rates, but its decisions have ripple effects. Experts expect rate cuts to begin later this year, and savings rates will likely follow suit once they do. But after the most recent Consumer Price Index report revealed an uptick in inflation, the timeline for future rate cuts is less clear.
“The elevated March inflation numbers have greatly reduced the odds of three Fed rate cuts in 2024,” said Ken Tumin, senior industry analyst at LendingTree. “One or two Fed rate cuts still look probable in the second half of 2024.”
Here’s where rates stand compared to last week:
CNET average savings APY | Weekly change* | FDIC average |
| 4.88% | No change | 0.46% |
*Weekly percentage increase/decrease from April 15, 2024, to April 22, 2024.
The average APY for the top high-yield savings accounts we track at CNET is 4.88% -- with some accounts offering as high as 5.55%. That’s more than 10 times the national average of 0.46%. Since savings rates are variable, your APY is likely to go down once the Fed drops rates. Yet even after rates fall later this year, high-yield savings accounts will continue to offer significantly better APYs than traditional ones.
Top reasons to open a high-yield savings account now
High-yield savings accounts are particularly attractive right now, making it a great spot to park a growing emergency fund or money for a short-term savings goal. But even though the rate environment may shift in the next several months, a high-yield savings account can always be a smart and low-risk savings strategy.
Here’s what makes HYSAs stand out:
- High rates: HYSAs often have APYs 10 times higher (or more) than the national average, as measured 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). CDs, another popular savings product, charge a penalty if you take out funds before the term is up.
- Accessibility: If you open an HYSA at an online bank, you’ll enjoy 24/7 account 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 a 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.
If you’re earning less than 1% with your current savings account -- some big banks offer as little as 0.01% APY -- you don’t have to close your existing account to enjoy higher rates. You can open a new account from an online bank in minutes and set up recurring transfers or direct deposits to start funding it.
What to look for in a savings account
A high-yield savings account can be a valuable tool for managing and growing your savings. But for an HYSA to work well with your money goals, you need to consider more than just the APY.
“Some accounts have mandatory minimums, transaction fees or other charges you might not expect,” said Ben McLaughlin, president of digital savings marketplace Raisin. “These hidden fees can chip away at your savings, so be sure you are satisfied with the terms and conditions before opening an account.”
Consider these factors to find an account that aligns with 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. How much you have to deposit initially can help you narrow down your options.
- Fees: Monthly maintenance and other fees can eat into your balance. Avoid unnecessary charges by looking for a bank with low or no fees.
- Accessibility: If in-person banking is important to you, look for a bank with physical branches. If you’re comfortable managing your money digitally, look for an online bank with a user-friendly app with all the features you need.
- 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: Look for a bank that belongs to the FDIC or a credit union that belongs to the NCUA. Accounts at these institutions are protected up to $250,000 per account holder, per category in the event of bank failure
- Customer service: You want a bank that’s responsive and offers convenient support options if you ever need assistance with your account. Read online customer reviews to see what current customers say about their experiences. You can also contact customer service to get a feel for what it would be like to work 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 with 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
An account will rank lower if it doesn’t have a professional-looking website or doesn’t provide an ATM card, or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.
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