There’s Only One 5% Savings Account Left. Today’s Daily Savings Rates, Nov. 29, 2024

We’ve been watching savings rates fall slightly over the past few months and now only one bank on the list CNET tracks is offering an APY over 5%. Most banks have lowered their high-yield savings rates to 4.90% or lower, with many dropping below 4%.

That’s a far cry from the high 5% and even 6% savings rates we saw a year ago.

Savings account rates could drop even lower when the Federal Reserve meets on Dec. 17 and 18 to decide if they’ll lower the federal funds rate again. But regardless of whether high-yield savings account rates drop even further, you’ll still earn more in interest than you would with a traditional savings account. 

Compared to the paltry rates traditional savings accounts offer, high-yield savings accounts will help you grow your money even faster. High-yield savings accounts also offer a safe place to store an emergency fund or money you’ll need for other short-term goals, like a holiday gift fund or vacation fund. 

Here are some of the top savings account APYs available right now:

Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.

Why savings APYs fall when the Fed cuts rates

The Fed started cutting interest rates in September due to cooling inflation and a slight rise in unemployment. Since then, savings account APYs have dropped steadily.

To be clear, the Fed doesn’t directly set the rates on consumer products like high-yield savings accounts and certificates of deposit, but its policies have ripple effects. 

When the Fed raises the federal funds rate — as it did 11 times over the last few years to combat high inflation — banks tend to raise their APYs. Similarly, when the Fed cuts interest rates, banks tend to decrease their APYs.

“While it’s true that HYSAs are influenced by the Fed’s decisions, not all institutions adjust their rates immediately, and some may hold off to stay competitive,” Kibbel said. “This means HYSAs continue to be a reliable option for keeping your money liquid while earning more than other low-risk alternatives.”

After the Fed issued its first rate cut this year in September, many CNET-tracked banks started lowering their savings account rates. For example, LendingClub cut its APY from 5.30% to 5.15% on Oct. 18, ending its streak as our top HYSA. On Nov. 7, it lowered it even further to 5.00% APY. Yesterday, its APY dropped to 4.75%.

Despite a slight inflation uptick in October, a third rate cut in December isn’t out of the question. The Federal Reserve also considers other data points, such as the unemployment rate. If the Fed cuts rates another quarter-percentage-point cut in December, as some expect, APYs would likely sink even more.

Fortunately, top savings accounts still offer rates far higher than the national average. But don’t wait too long to snag a great rate. Here’s where savings rates stand at the start of this week compared to the start of last week:

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

While there’s some degree of uncertainty around whether rates will fall or hold steady following next month’s Fed meeting, a HYSA still provides plenty of value.

“In a declining rate environment, it’s still valuable for people to store cash for shorter-term needs — think emergency funds, bills and savings for near-term goals — in high-yield accounts with competitive APYs,” said Alex Michalka, Ph.D., VP of Investment Research at Wealthfront.

The key difference between using a HYSA for your emergency funds compared to a CD or bond is that you can access the funds quickly without incurring a penalty. CDs and bonds are better savings vehicles for your long-term financial plans. 

Choosing a high-yield savings account doesn’t have to be hard 

Picking financial products can seem challenging or complicated, but it doesn’t need to be. 

Consider focusing less on chasing high interest rates and more on what the product can do for you. Earning a solid interest rate on an emergency fund while providing liquidity may be more important than the hassle of chasing after a half percentage point more with another bank. The account still offers liquidity, so you’ll have access to the money when you need it — even if you’re not earning as much interest. 

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

When you’re deciding which account and bank are best for your savings, here’s what to look for:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, typically, from $25 to $100. Others don’t require anything.
• 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 reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of the Polished CFO and CNET expert review board member.
• Fees: Look out for fees for monthly maintenance, withdrawals and paper statements, said Mohip. The charges can eat into your balance.
• Accessibility: If you prefer in-person assistance, 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 excess withdrawal fee if you make more than six monthly withdrawals. If you think you may need to make more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is either insured with the FDIC or the NCUA. This way, your money is protected up to $250,000 per account holder, per category, if there’s a bank failure.
• Customer service: Choose a bank that’s 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 to get a feel for working with the bank.

Methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all 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 percentage yields, 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 for offering any of the following perks:

• Account bonuses
• Automated savings features
• Wealth management consulting/coaching services
• Cash deposits
• Extensive ATM networks and/or ATM rebates for out-of-network ATM use

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

*APYs as of Nov. 27, 2024, based on the banks we track at CNET. Weekly percentage increase/decrease from Nov. 18, 2024, to Nov. 25, 2024.
**Varo offers 5% APY only on balances of less than $5,000

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