Don’t Sleep on Savings Rates as High as 5.35% APY: Best Savings Rates Today, March 4, 2024  (2024)

Traditional savings accounts are notorious for paying paltry interest rates. But the best high-yield savings accounts offer annual percentage yields, or APYS, more than 10 times the national average of 0.46%.

“We are in a period of high interest rates because the Federal Reserve raised them to combat inflation and help prevent the economy from entering a prolonged recession,” said Shang Saavedra, founder and CEO of Save My Cents and CNET Financial Review Board member. “As a result, we are seeing some of the highest interest rates being paid on HYSAs in years.”

The highest-yielding savings accounts still earn APYs up to 5.35%, but don’t expect these rates to stick around forever. The Fed has indicated that rate cuts are on the table this year, meaning it’s not a matter of if but when. So now’s the time to take advantage of high rates before they drop.

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

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:

What you need to know about savings rates this week

Savings rates have consistently been trending upward since the Federal Reserve began raising interest rates in March 2022 to fight record inflation. When the Fed raises the benchmark rate, banks tend to raise rates on consumer products like savings accounts and CDs to remain competitive.

But after 11 rate hikes since March 2022, the Fed has opted to leave the federal funds rate at a range between 5.25% and 5.50% at its last four meetings, indicating to experts that savings rates are likely at their peak.

Still, experts believe that savings rates will remain elevated until the Fed begins dropping rates, with signals that rate cuts are possible later this year.

Here’s where rates stand compared to last week:

The average APY for the top high-yield savings accounts we track at CNET is 4.89% -- with some accounts offering as high as 5.35%. We haven’t seen any significant changes in weeks, and the only individual change we’ve seen recently was Upgrade Premier’s high-yield savings account, which increased its rate from 5.07% to 5.21% on Feb. 27.

Since savings rates are variable -- meaning they move in lockstep with the federal funds rate -- your APY is likely to go down once the Fed drops rates. So the sooner you open a high-yield savings account, the longer you can enjoy high rates.

Benefits of opening a high-yield savings account

High-yield savings accounts usually have higher APYs than traditional savings accounts. And even after rates fall this year, high-yield savings accounts will continue to offer significantly better APYs than traditional ones.

But there’s more to high-yield savings accounts than just the APY. 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.

Weigh these factors before choosing a high-yield savings account

A high APY is important, but it’s not the only factor that matters when shopping around for a high-yield savings account.

“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 chip away at your savings, so be sure you are satisfied with the terms and conditions before opening an account.”

Here’s what you should look for 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.