Many banks have been quietly lowering savings annual percentage yields all year.
In September the Fed made its first rate cut since March 2020, savings rates began to drop faster.
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Why are savings rates dropping?
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.
On Nov. 7, it lowered it even further to 5.00% APY.
Last week, its APY dropped to 4.75%.
Despite a slightinflation uptickin 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.
This week’s average savings APY
Is a high-yield savings account still a good idea?
High-yield savings accounts will still offer better rates thantraditional banks.
More importantly, high-yield savings accounts offer a safe place to park your funds.
“Overall, HYSAs remain a smart choice for savers,” said Kibbel.
“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. 2, 2024, based on the banks we track at CNET.
Weekly percentage increase/decrease from Nov. 25, 2024, to Dec. 2, 2024.
