High-Yield Savings Rates May Be Falling, but Experts Are Still Sticking to This Account. Today's Savings Rates, Dec. 23, 2024

As the year draws to a close, the best high-yield savings account can still help you earn nearly 5% APY on your savings. That may change soon now that the Federal Reserve voted to lower interest rates. Typically when the Fed cuts the federal funds rate, banks follow suit by lowering their savings rates. 

Opening a HYSA is still a smart way to earn more interest on money you need easy access to, like an emergency fund. 

“HYSAs still have pretty good rates, even after rates have started to fall,” said Danielle Flores, a CNET Money expert and founder of I Like to Dabble. “I signed up for a HYSA last month with a 4.1% rate that fell to 3.9% last week but I am still earning a decent amount of money on my balance.” 

Here’s the latest on savings rates and what to know about opening a HYSA. 

Experts recommend comparing rates before opening a savings account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.

Why a high-yield savings account is better than a traditional savings account 

Despite rates falling from last year’s record-high 6%, Flores still recommends a HYSA of money you’re already stashing away. 

Even as rates fall, you’ll still earn more than a traditional savings account, which usually offers pennies on your hard-earned savings. For example, if you make a one-time deposit of $500 into a HYSA that currently has a 4% APY, and rates don’t change for the next six months, you’ll earn about $10 in interest. Whereas, if you keep your money in a traditional savings account with a 0.01% APY, you’ll earn two cents over that same time span. 

The $10 you earn for stashing the money in a HYSA might not seem like much, but every dollar adds toward your savings goal. 

How to choose the best high-yield savings account for your savings needs

It doesn’t hurt to shop around for better rates to see if you can earn more interest while high rates are still around. Experts still recommend comparing for better rates, offers and fees once a year. Here are some things to look for:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, typically between $25 and $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 Lanesha Mohip, founder of the Polished CFO and CNET expert review board member.
• 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.

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 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 use

A 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.

*APYs as of Dec. 20, 2024, based on the banks we track at CNET. Weekly percentage increase/decrease from Dec. 9, 2024, to Dec. 16, 2024.

**Varo offers 5% APY only on balances of less than $5,000

More savings advice: 

• The Fed Cut Rates Again. Will APYs for Savings Accounts and CDs Continue to Drop?
• The Fed Cut Rates Again Today. Make These 4 Money Moves ASAP
• How This Mother of Five Is Affording the Holidays Without Overspending