Grab high savings rates while you can after the Fed’s rate cut. Today’s Savings Rates, December 19, 2024

The Federal Reserve reduce interest rates yesterday, which means there may not be much time left to help grow your money with the best high yield savings accounts. Since banks generally move in the same direction as the Fed, lower savings rates are probably on the horizon.

Despite the expected drop in interest rates, experts say it’s still worth having a high-yield savings account because they offer an annual percentage return, or APY, of more than 10 times average for the country.

“A high-yield savings account is a great place for short-term savings because your money isn’t 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 SmithCNET Money expert, author and co-host of the Frugal Friends podcast.

Regardless of the interest rate, you still have the flexibility to deposit and withdraw money when you need it, making the account an ideal place to hide your emergency fund or sinking fund for your 2025 goals So if you want to maximize your earnings, we don’t recommend waiting. Here are the best savings APYs still around and what you need to know before opening an account.

Experts recommend comparing rates before opening a savings account to get the best possible APY. Enter your information below to get the best CNET partner price for your area.

How Fed Rate Cuts Can Affect Savings APYs

The Federal Reserve cut rates by 25 basis points this week and has two more cuts for 2025, so you could see a drop in savings rates.

The central bank does not control savings rates, but banks generally move in the same general direction as the Fed. The rate cut doesn’t change Smith’s view of HYSA’s value.

“Interest rates on high-yield savings accounts will go down, but they won’t go down enough to make it not worth having,” Smith said.

Factors to Consider Before Opening a High Yield Savings Account

It won’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 prices, 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, usually between $25 and $100. Others require 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 eat up 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 additional withdrawal fee if you make more than six monthly withdrawals. If you think you may need to do more, consider a bank without this limit.
• Federal Deposit Insurance: Make sure your bank or credit union is FDIC or NCUA insured. Thus, your money is protected up to $250,000 per account holder, per category, if there is a bank failure.
• Customer service: Choose a bank that is 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 department to get a feel for dealing 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 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 rates of return, 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:

• Account Bonuses
• Automatic saving features
• Advisory/wealth management services
• Cash deposits
• Expanded 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.

*APY as of December 18, 2024. based on the banks we track at CNET. Weekly percentage increase/decrease from December 9, 2024. until December 16, 2024

**Varo offers 5% APY only on balances under $5,000

More tips for saving: