But even thebest high-yield savings accountshave fallen from the 6% savings rates we saw a year ago.
There’s still one bank that offers 5.00%, but only for balances up to $5,000.
But you could still find HYSAs that offer APYs well over 4%.
Using a high-yield savings account is a good way to automate savings.
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TheFed started cutting interest rates in Septemberas inflation cooled.
Since then, savings account APYs have been dropping steadily.
However, savings rates can rise and fall for other reasons.
After the Fed’s first rate cut in September, many CNET-tracked banks started lowering their savings account rates.
On Nov. 7, it lowered it even further to 5.00% APY.
Last week, its APY dropped to 4.75%.
The Federal Reserve also considers other data points, such as the unemployment rate.
That means you could see a lower savings rate going into the new year.
High-yield savings accounts will still offer better rates thantraditional banks.
High-yield savings accounts still offer rates that far outpace traditional savings accounts – more than 10 times thenational average.
“Overall, HYSAs remain a smart choice for savers,” Kibbel said.
“Especially if you prioritize accessibility and safety, though it’s always wise to monitor rate trends.”
CDs and bonds are better savings vehicles for your long-term financial plans.
If you’re earning near 0% on your savings, now is a good time to switch.
Each account received a score between one (lowest) and five (highest).
None of the banks on our list charge monthly maintenance fees.
Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*APYs as of Dec. 4, 2024, based on the banks we track at CNET.
Weekly percentage increase/decrease from Nov. 25, 2024, to Dec. 2, 2024.
**Varo offers 5% APY only on balances of less than $5,000
