Best Savings Rates Today: Earn up to 5.35% APY with one of these high-yield savings accounts, March 27, 2024

Over the past two years, savers have been able to maximize their interest earnings with savings accounts that earn more than 5% annual percentage yield, or APY. And although savings rates remain elevated after the Federal Reserve kept savings rates unchanged last week, the clock is ticking on high APYs. The Fed expects three more rate cuts during 2024.

Crumpled dollar bills on a blue background

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The best high-yield savings accounts currently earn APYs of up to 5.35%, which is more than 10 times the national average of 0.47%. So if you earn less than 1% in a traditional savings account, now is the time to switch.

Read on to learn more about today’s highest savings rates.

Key points

  • A high-yield savings account can help you grow your money faster.
  • Today’s best high-yield savings accounts earn up to 5.35% APY.
  • There’s still time to enjoy a high APY, but now is the time to act: Experts predict rates will drop later this year.

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

Today’s best savings rates

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

APY as of March 27, 2024, based on banks tracked on CNET.

Where the highest savings rates are today

High interest rates had everyone’s attention for much of 2022 and 2023. While the Fed steadily raised the federal funds rate to combat record inflation, banks raised rates on consumer products like savings accounts. savings and certificates of deposit.

But after 11 rate hikes since March 2022, the Fed has decided to leave the federal funds rate unchanged for the past five meetings, signaling to experts that savings rates are likely at their peak.

Here is the rate situation compared to last week:

CNET Average Savings APY Weekly change* FDIC Average
4.88% -0.20% 0.47%
APY as of March 27, 2024. Based on banks tracked on CNET.
*Weekly percentage increase/decrease from March 18, 2024 to March 25, 2024.

The Fed announced that rates would remain unchanged at last week’s FOMC meeting, maintaining its target range of 5.25% to 5.5%. Experts still expect rate cuts to begin later this year, but after the most recent consumer price index report revealed rising inflation, the timeline for future rate cuts is less clear.

“The first rate cut is unlikely to occur before the June Fed meeting, and if the current inflation trend continues into March and April, the Fed may decide to delay the first rate cut into the second half of 2024.” , said Ken Tumin, a senior industry analyst at LendingTree.

Since savings rates are variable, meaning they move in lockstep with the federal funds rate, your APY is likely to decrease once the Fed lowers rates. But even after rates drop later this year, high-yield savings accounts will continue to offer significantly better APYs than traditional savings accounts.

However, experts believe that savings rates will remain high until the Fed starts lowering them.

Why you should open a high-yield savings account today

Savings rates have soared in recent years, but they are likely at their peak. However, a high-yield savings account can be a smart savings strategy in any rate environment, so don’t let expected rate drops stop you from opening one today.

Here’s what sets HYSA apart:

  • High rates: HYSAs often have APYs 10 times higher (or more) than the national FDIC average.
  • Low or no commissions: Monthly maintenance fees can eat into your savings. Many online banks can charge low or no fees due to lower operating costs.
  • Liquid assets: You can access the money in your HYSA at any time without penalty (provided you take into account the withdrawal limits). CDs, another popular savings product, come with a penalty if you withdraw funds before the term expires.
  • Accessibility: If you open a HYSA at an online bank, you will enjoy 24/7 account access via their mobile app. You may also have many customer support options, including telephone, online chat, and secure messaging.
  • Low risk: HYSAs are protected by federal deposit insurance if they are held at an FDIC-insured bank or NCUA-insured credit union. This means your money is safe up to $250,000 per account holder, per account type.

If you earn less than 1% with your current savings account (some large banks offer an APY as low as 0.01%) you don’t have to close your existing account to take advantage of 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.

Factors to evaluate before choosing a high-yield savings account

High-yield savings accounts usually have higher APYs than traditional savings accounts, which helps you get a higher return. But there are other factors you should consider when choosing the right account for your financial goals.

“Some accounts have mandatory minimums, transaction fees or other charges you might not expect,” said Ben McLaughlin, chief marketing officer and president of digital savings marketplace Raisin. “These hidden fees can eat into your savings, so make sure you are happy with the terms and conditions before opening an account.”

So, in addition to APY, you should also consider the following when comparing savings accounts:

  • Minimum Deposit Requirements: Some HYSAs require a minimum amount to open an account, typically $25 to $100. Others require nothing. The amount you need to deposit initially can help you narrow down your options.
  • Commissions: Monthly maintenance and other expenses can eat into your balance. Avoid unnecessary expenses 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 an intuitive 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 need to earn 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 a bank failure
  • Customer service: You want a bank that is responsive and offers convenient support options if you ever need assistance with your account. Read customer reviews online to see what current customers say about their experiences. You can also contact customer service to get an idea of ​​what it would be like to work with the bank.

Methodology

CNET examined savings accounts at more than 50 traditional and online banks, credit unions and serviced financial institutions nationwide. 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 the National Credit Union Administration.

CNET rates the best savings accounts with a set of established criteria that compare annual percentage returns, 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 be ranked higher if it offers one of the following benefits:

  • Account bonus
  • Automated saving features
  • Wealth management consultancy/coaching services
  • Cash deposits
  • Expanded ATM networks and/or ATM discounts for out-of-network ATM use

An account will be ranked lower if it does not have a professional-looking website or does not provide an ATM card, or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.

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