There’s Still Time to Maximize Interest to Reach Your Savings Goals. Today’s Savings Rates, Dec. 11, 2024
- The best high-yield savings accounts still offer interest rates well above 4% per year, but some banks are already cutting rates.
- If the Fed cuts interest rates next week, the savings rate could fall further into the new year.
- Despite falling interest rates, experts recommend keeping funds intended for short-term goals in a high-yield savings account for easier access.
You still have time to boost your savings with one of these Best High Yield Savings Accounts. But even as interest rates drop, a savings account can still help you achieve your financial goals.
Opening a HYSA is an easy way to earn interest, you may need funds quickly e.g. emergency fund. But our CNET finance expert and founder of Save My Cents Jean Saavedra Also like that having a separate account can help you avoid spending your stash unnecessarily.
“The psychological trick with these accounts is that you don’t care about money,” Saavedra said. “Most people focus on how much money is in their checking account, but not so much on how much money is in their savings account.”
If you set up automatic deposits in your account, the savings can really pile up. This is where your money can earn the most interest as you work toward your savings goals.
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.
Savings rate could edge down after next week’s Fed meeting
The Federal Reserve will meet on December 17-18, and most experts expect to cut rates by another 25 basis points.
If the Fed chooses to cut interest rates, most savings rates are expected to fall in the coming weeks. But that doesn’t mean you’ll see high-yield savings account rates drop immediately.
“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.
So if a bank wants to attract new customers, it might actually increase savings rates to encourage people to sign up for new accounts.
Why HYSA is still a smart choice for your savings
Experts agree that high-yield savings accounts are the best place to reserve money for short-term goals. they have federal insurance Up to $250,000 per account type and bankif you need to withdraw your funds quickly, most make it easy to access your funds.
Think of the interest you earn as an added bonus. “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.”
Even if high-yield savings accounts continue to decline, you’ll still earn more interest than with a traditional savings account that offers nearly 0% APR. The interest rate on a high-yield savings account is still more than 10 times that of a regular savings account national average.
Vice President Alex Michalka said: “In a declining interest rate environment, there is still value for 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. ” Investment Research by Wealthfront.
If you have funds earmarked for long-term savings, you might consider Lock deposit slip Although the interest rates are high.
Compare the latest savings rates
| Average CNET APY savings last week* | Average CNET APY savings this week | weekly changes |
|---|---|---|
| 4.41% | 4.36% | -1.15% |
7 factors to weigh before 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 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 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 11, 2024, based on banks we track at CNET. Weekly percentage increase/decrease from December 2, 2024 to December 9, 2024.
**Varo only offers 5% APY on balances under $5,000
