Today’s Best Savings Rates, Jan. 18, 2024: Top Savings Accounts Boast APYs Over 5.25%

You could be missing out if you have extra cash sitting in a checking or savings account that’s not earning over 4% annual percentage yield. While the national average for savings accounts is only 0.47%, according to the Federal Deposit Insurance Corporation, some of the best high-yield savings accounts earn annual percentage yields, or APYs, up to 5.35%. 

Savings rates took off in 2022 as the Federal Reserve increased its benchmark federal funds rate to fight record-high inflation. But after three consecutive rate hike pauses and hints at the possibility of rate cuts later this year, savings rates have likely leveled out. So, now is the time to take advantage of high rates while they are still around.

“Now is an ideal time to open a high-yield savings account because aggregate interest rates have increased dramatically over the last 18 months,” said Bryan Bell, a senior financial advisor at First Horizon Advisors. “Financial institutions are able to pay higher interest rates than we’ve seen in a dozen years.”

Experts recommend comparing rates before opening a savings account to get the best APY possible. You can enter your information below to see CNET’s partners’ rates in your area.

Today’s best savings rates

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

Where savings rates stand this week

After a year of significant highs, savings rates plateaued at the end of 2023 as the Fed paused rate hikes three times in a row. And many experts believe the Fed will start to lower rates in mid to late 2024.  

“2023 was a great year for savers, and while rates are still high, they are expected to trend downward in the spring,” said Ben McLaughlin, chief marketing officer and president of Raisin.  “Now is an opportune time for savers to take advantage of high-interest rates on high-yield savings accounts.”

That said, APYs on the highest-yielding savings accounts remain attractive. Here’s where they stand compared to last week:

The average APY for the top high-yield savings accounts we track at CNET is 4.87%. That’s more than 10 times greater than the national average of 0.46% reported by the FDIC. This difference can add up when you consider that savings accounts earn compound interest — in other words, you earn interest not only on your principal balance but also on the interest you’ve earned to date.

Advantages of opening a high-yield savings account

The sooner you open a savings account, the longer you’ll be able to enjoy high rates. Even after rates fall, high-yield savings accounts will continue to offer significantly better APYs than traditional ones. So, don’t let anticipated rate drops stop you from making the switch. Opening an HYSA can be a smart strategy in any rate environment.

Here’s what makes HYSAs stand out:

• High rates: HYSAs often have APYs 10 times higher (or more) than the national FDIC average.
• Low or no fees: Monthly maintenance fees can eat into your savings. Many online banks can charge low or no fees thanks to their lower operating costs.
• Liquidity: You can access money in your HYSA anytime without penalty (as long as you mind any withdrawal limits). CDs, another popular savings product, charge a penalty if you take out funds before the term is up.
• Accessibility: If you open an HYSA at an online bank, you’ll enjoy 24/7 account access through its mobile app. You may also have lots of customer service options, including by phone, online chat and secure messaging.
• Low risk: HYSAs are protected by federal deposit insurance if they’re held at an FDIC-insured bank or NCUA-insured credit union. That means your money is safe up to $250,000 per account holder, per account type.

If you’re earning less than 1% with your current savings account — some big banks offer as little as 0.01% APY — you don’t have to close your existing account to enjoy higher rates. You can open a new account from an online bank in minutes and set up recurring transfers or direct deposits to start funding it.

What to consider before opening a high-yield savings account

In addition to APY, you should also weigh the following when comparing savings accounts:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account — typically, from $25 to $100. Others don’t require anything. How much you have to deposit initially can help you narrow down your options.
• Fees: Monthly maintenance and other fees can eat into your balance. Avoid unnecessary charges by looking for a bank with low or no fees.
• Accessibility: If in-person banking is important to you, look for a bank with physical branches. If you’re comfortable managing your money digitally, look for an online bank with a user-friendly app with all the features you need.
• 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: Look for a bank that belongs to the Federal Deposit Insurance Corporation or a credit union that belongs to the National Credit Union Administration. Accounts at these institutions are protected up to $250,000 per account holder, per category in the event of bank failure
• Customer service: You want a bank that’s responsive and offers convenient support options if you ever need assistance with your account. Read online customer reviews to see what current customers say about their experiences. You can also contact customer service to get a feel for what it would be like to work 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 Federal Deposit Insurance Corporation or National Credit Union Administration.

CNET evaluates the best savings accounts with 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

An account will rank lower if it doesn’t have a professional-looking website or doesn’t provide an ATM card, or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.