These Savings Rates Won’t Last. Don’t Wait Until the New Year to Make a Move. Today’s Savings Rates, Dec. 4, 2024 | Global News Avenue

According to our daily tracking, the average savings rate is still hovering around 4.36%. But even Best High Yield Savings Accounts That’s down from a savings rate of 6% a year ago.

There is still one bank offering 5.00% interest rate, but only on balances up to $5,000. But you can still find HYSA with APY well over 4%. While many banks have refrained from significantly adjusting interest rates over the past few weeks, looming rate cuts could change that.

If the Fed lowers interest rates at this month’s meeting, you could see the savings rate fall further. If you’re focused on holiday sales and planning, you probably haven’t thought about your 2025 savings goals. Using a high-yield savings account is a great way to automate your savings. Here are some of the top savings account APRs available today:

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

How the Fed Affects Your New Year’s Savings Rate

When the Federal Reserve raises or lowers the federal funds rate, consumer products like savings accounts tend to follow suit. this Fed starts cutting interest rates in September As inflation cools. Since then, savings account APRs have been steadily declining.

However, savings rates can rise or fall for other reasons.

“While HYSA is certainly affected by the Fed’s decision, not all institutions will adjust rates immediately, and some may delay changes to remain competitive,” said Steven Kibbel, a certified financial planner and founder and CEO of Kibbel Financial Planning. “This means HYSA remains a reliable option for keeping funds liquid while earning more than other low-risk alternatives.”

After the Federal Reserve cut interest rates for the first time in September, many banks tracked by CNET began lowering interest rates on savings accounts. For example, LendingClub cut its APY from 5.30% to 5.15% on October 18, ending its streak as our top HYSA. On November 7, it further lowered the annual interest rate to 5.00%. Last week, its APY dropped to 4.75%.

Although inflation rose slightly last month, a third rate cut in December is not out of the question. The Fed also considers other data points, such as the unemployment rate. If the Fed cuts rates by another 25 percentage points in December, as many expect, APY could fall further.

That means you’ll likely see a lower savings rate heading into the new year. However, even if you only save a few dollars between now and the end of the month due to the holidays and expenses, any additional funds you allocate to your HYSA will help you reach your 2025 savings goals.

High-yield savings accounts are still a smart choice for your money

Save money for other short-term goals High Yield Savings Account This is generally a good idea even if interest rates fall. High-yield savings accounts will still offer better interest rates than regular savings accounts traditional bank.

Interest rates on high-yield savings accounts still far exceed those on traditional savings accounts—more than 10 times higher. national average. So if you want to fill your gaps, don’t waste your time emergency fund or start one sinking fund.
What’s more, high-yield savings accounts provide a safe place to park your funds.

“Overall, HYSA remains a smart choice for savers,” Kibbel said. “Especially if you prioritize accessibility and safety, although it’s always wise to monitor rate trends.”

There’s a degree of uncertainty about whether rates will fall or remain steady after next month’s Fed meeting, but HYSA still offers plenty of 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. Wealthfront Vice President of Investment Research.

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.

If your savings are earning close to 0%, now is a good time to switch. Here’s a comparison of savings rates at the beginning of this week versus the beginning of last week:

What to consider when opening a high-yield savings account

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 may be rated lower. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.

*APY as of December 3, 2024, based on banks we track at CNET. Weekly percentage increase/decrease between November 25, 2024 and December 2, 2024.
**Varo only offers 5% APY on balances under $5,000