Savings rates are holding high ahead of this week’s Fed meeting. Today’s Savings Rates, December 17, 2024

The Federal Reserve meeting is this week, and experts predict the central bank will do just that lower interest rates. That means you’ll likely see a lower lower annual percentage rate of return, or APY, on some of the the best high yield savings accounts. You can still find rates above 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 fall, it’s still worth having a high-yield savings account because they offer more than 10 times the APY average for the country. You also get the flexibility to deposit and withdraw money when you need it – making the account an ideal place to stash your emergency fund or a sinking fund.

“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.

If you want to maximize your earnings, we don’t recommend waiting. Here are the best savings rates and everything you need to know before you open a HYSA before the end of the year.

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

How Wednesday’s Fed meeting could affect savings rates

The Federal Reserve meets this week and most experts expect another 25 basis point rate cut. If the Federal Reserve decides to cut, 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. A potential drop in rates doesn’t change Smith’s view on whether HYSAs will continue to be valuable.

“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.

Experts agree that high-yield savings accounts are the best places to store money for short-term purposes. 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.

Compare the latest savings rates

Other factors to consider beyond the APY of a 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 help, 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 16, 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

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