One Bank Holds Savings Rates at 5% Ahead of Today’s Fed Meeting. Today’s Savings Rates, Dec. 18, 2024
- The Federal Reserve is expected to cut interest rates today, and banks are likely to follow suit by lowering their savings rates.
- High-yield savings accounts continue to be ideal for short-term savings, allowing you to easily access the funds you need, whenever you want.
- Some online banks and credit unions still offer annual interest rates on savings in excess of 4.50%.
As the Federal Reserve’s final meeting of 2024 wraps up, expectations lower interest rates This year is the third time. Banks generally move in the same direction as the Fed, which means there may not be much time to get a high annual percentage rate (APY) on some things. Best High-Yield Savings Accounts.
Experts say that even if interest rates do drop, high-yield savings accounts are still worth owning because they offer APYs that are more than 10 times the actual interest rate. national average.
“High-yield savings accounts are a great place to save for the short term because your money isn’t tied up like a CD or at risk like it is in a brokerage account,” he says. Jane Smitha CNET finance expert and author and co-host of the Frugal Friends podcast.
Plus, you have the flexibility to deposit and withdraw money as needed – making this account the ideal place to park your funds. emergency fund or a sinking fund.
If you want to maximize your earnings, we don’t recommend waiting. Here are the best savings APRs out there and what you need to know before opening an account.
Today’s Best Savings Rates
| bank | annualized rate* | minute. Deposit opening |
|---|---|---|
| Precautions | 5.00%** | $0 |
| Newtech Bank | 4.90% | $0 |
| lending club | 4.75% | $0 |
| Wing Fung Bank | 4.75% | $0 |
| basque bank | 4.65% | $0 |
| Laurel Road | 4.50% | $0 |
| sync bank | 4.10% | $0 |
| American Express | 3.90% | $0 |
| capital one | 3.80% | $0 |
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 today’s Fed meeting will affect the savings rate in 2025
Most experts expect another 25 basis point rate cut today. If the Fed chooses to cut interest rates, you may see the savings rate fall.
The central bank does not control the savings rate, but banks generally take the same general direction as the Fed. A potential drop in interest rates won’t change Smith’s view of HYSA’s value.
“Interest rates on high-yield savings accounts will go down, but not to the point where they’re not worth having,” Smith said.
Compare the latest savings rates
| CNET average APY savings last week* | Average APY savings on CNET this week | weekly changes |
|---|---|---|
| 4.35% | 4.33% | -0.46% |
What to consider before opening a high-yield savings account
While high interest rates are still around, it doesn’t hurt to shop around for better rates to see if you can earn more interest. Smith recommends comparing better prices, offers and fees once a year. Here are some things to note:
- Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $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 December 17, 2024, based on banks we track at CNET. Weekly percentage increase/decrease between December 9, 2024 and December 16, 2024.
**Varo only offers 5% APY on balances under $5,000
