Maximize Your Savings Now With These Top Accounts. Today’s Savings Rates, Nov. 26, 2024 | Global News Avenue

We know record-breaking APRs on savings won’t last forever. When the Fed began lowering the federal funds rate in September, it knocked over the first domino that caused the APY to fall. high yield savings account.

Currently, only a handful of banks on our list have APYs above 5%, with the rest declining. However, considering national average Still only 0.43%, your account balance will still earn more interest than if you left it in the account traditional savings account.

“Overall, HYSA continues to be a smart choice for savers,” said Steven Kibbel, certified financial planner and founder and CEO of Kibbel Financial Planning. “Especially if you prioritize accessibility and safety, although it’s always wise to monitor rate trends.”

Here are some of the top savings account APRs available today:

Experts recommend comparing interest rates before opening a CD account to get the best possible annual return. Enter your information below to get the best prices in your area from CNET partners.

When the Fed lowers interest rates, it affects your APY

this Fed starts cutting interest rates in September As inflation cooled and unemployment rose slightly. Since then, annual interest rates on savings accounts have steadily declined.

To be clear, the Fed does not directly set high-yield savings accounts and certificate of depositbut its policies will have ripple effects.

When the Fed raises the federal funds rate — as it has done 11 times in the past few years high inflation – Banks tend to increase annual interest rates. Likewise, when Fed cuts interest ratesbanks tend to lower their APY.

“While HYSA is indeed affected by the Fed’s decision, not all institutions will adjust rates immediately, and some may delay adjustments to remain competitive,” Kiebel said. “This means HYSA remains a reliable option to maintain liquidity. , while earning more than other low-risk alternatives.”

After the Federal Reserve cut interest rates for the first time this year in September, many banks tracked by CNET began lowering interest rates on savings accounts. For example, lending club On October 18, its APY was cut from 5.30% to 5.15%, ending its streak as our top HYSA. On November 7, it further lowered the annual interest rate to 5.00%.

Although slightly rising inflation A third interest rate cut in October and December is not out of the question. The Fed also considers other data points, such as the unemployment rate. If the Fed cuts interest rates by another quarter percentage point in December, as some expect, APY could fall further.

Fortunately, interest rates on top-tier savings accounts are still much higher than on average savings accounts national average. But don’t wait too long to get a great deal. Here’s how savings rates looked at the beginning of this week compared to the beginning of last week:

Don’t wait to open a high-yield savings account

Despite falling interest rates, high-yield savings accounts still offer great value.

“In a falling interest rate environment, there is still value in people storing cash in high-yield accounts with competitive APYs to meet short-term needs such as emergency funds, bills and short-term goal savings,” said Alex Michalka, Ph.D. , Vice President of Investment Research at Wealthfront.

The main difference with using a HYSA as an emergency fund compared to CDs or bonds is that you can access the funds quickly without penalty. Fixed deposits and bonds are better savings tools for your long-term financial plan.

How to choose the right high-yield savings account

Consider focusing less on chasing high interest rates and more on what the product can do for you. Earning a stable interest rate on an emergency fund while providing liquidity may be more important than the hassle of chasing half a percentage point from another bank.

When you decide which account and bank is best for your savings, keep the following in mind:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually $25 to $100. Others don’t need anything.
• ATM deposits and withdrawals: Not every bank offers cash deposits and withdrawals. If you need to use an ATM regularly, check to see if your bank offers ATM fee reimbursement or a variety of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and a member of CNET’s Expert Review Board.
• cost: Be aware of the fees for monthly maintenance, withdrawals and paper statements, Mohip said. These fees drain your balance.
• Auxiliary functions: If you prefer in-person help, look for a bank with a physical branch. If you’d rather manage your money digitally, consider online banking.
• Withdrawal limits: Some banks charge an excess withdrawal fee if you make monthly withdrawals for more than six months. If you think you might need to make more money, consider a bank that doesn’t have this restriction.
• Federal Deposit Insurance: Make sure your bank or credit union is insured through the FDIC or NCUA. This way, if a bank fails, up to $250,000 per account holder and per category of funds is protected.
• Customer Service: Choose a bank that is responsive and makes it easy to get help with your account when you need it. Read online customer reviews and contact the bank’s customer service to get an idea of ​​what it’s like to work with the bank.

methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions offering services nationwide. Each account has a score between 1 (lowest) and 5 (highest). The savings accounts listed here are insured by the FDIC or NCUA up to $250,000 per person, per account category, and per institution.

CNET evaluates the best savings accounts using a set of established criteria that compare annual yield, monthly fees, minimum deposits or balances and access to physical branches. None of the banks on our list charge monthly maintenance fees. Accounts that offer any of the following benefits will be ranked higher:

• Account bonus
• Automatic saving function
• Wealth Management Consulting/Counseling Services
• cash deposit
• ATM rebates used by extensive ATM network and/or out-of-network ATMs

If a savings account doesn’t have an easy-to-navigate website or doesn’t offer useful features like an ATM card, it’s likely to be rated lower. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.

*APY as of November 25, 2024, based on banks we track at CNET.

**This week’s APY is as of November 25, 2024. Based on banks we track at CNET.

***Weekly percentage increase/decrease between November 18, 2024 and November 25, 2024.

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