- When the central bank lowers its federal funds rate, banks tend to move in the same direction -- which could mean lower interest rates.
- Even if rates fall, experts still recommend high-yield savings accounts for short-term savings goals.
- The best high-yield savings account rates are usually at online banks and credit unions.
The Federal Reserve meeting is this week, and experts predict the central bank will lower interest rates. That means you'll likely see lower a lower annual percentage yield, or APY, on some of the best high-yield savings accounts. You can still find rates over 4%, which can help you grow your money faster, but in the coming weeks expect a lower APY than what we're seeing today.
Even if rates do fall, a high-yield savings account is still worth having, as they offer APYs more than 10 times the national average. Plus, you get the flexibility to deposit and withdraw money as you need it -- making the account an ideal spot to stash your emergency fund or a sinking fund.
"A high-yield savings account is a great place to save short term because your money is not tied up like it would be in a CD and it's not at risk like it would be in a brokerage account," said Jen Smith, a CNET Money expert, author and co-host of the Frugal Friends Podcast.
If you want to maximize your earnings, we don't recommend waiting. Here are the best savings rates and everything to know before opening a HYSA before the year ends.
Today's best savings rates
| APY* | Min. deposit to open |
| 5.00%** | $0 |
| 4.90% | $0 |
| 4.75% | $0 |
| 4.75% | $0 |
| 4.65% | $0 |
| 4.50% | $0 |
| 4.10% | $0 |
| 3.90% | $0 |
| 3.80% | $0 |
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.
How Wednesday's Fed meeting could impact savings rates
The Federal Reserve meets this week, and most experts are anticipating another 25-basis point rate cut. If the Fed opts to cut, you could see a dip in savings rates.
The central bank doesn't control savings rates, but banks typically move in the same general direction as the Fed. A potential dip in rates doesn't change Smith's opinion about whether HYSAs will continue to be valuable.
"Interest rates on high-yield savings accounts will go down, but they're not going to go down enough to where it won't be worth having one," Smith said.
Experts agree that high-yield savings accounts are the best places to keep money for short-term goals. They're federally insured up to $250,000 per account type and bank, and most offer easy access to your money if you need to withdraw it quickly.
Compare the latest savings rates
Compare the latest savings rates
| This week's CNET average savings APY | Weekly change |
| 4.33% | -0.46% |
Other factors to consider beyond a savings account's APY
It doesn't hurt to shop around for better rates to see if you can earn more interest while high rates are still around. Smith recommends 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. 16, 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
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