Start Your 2025 Savings Goals Now. High APYs Could Be Gone by the New Year. Today’s Savings Rates, Dec. 5, 2024

You still have time to increase your savings by depositing them in one of them the best high yield savings accounts. The average APY savings rate is still over 4.30% based on our daily tracking. Savings rates haven’t changed drastically over the past few weeks, but banks have been cutting them steadily this year.

While interest rates on the best savings accounts are still high, APYs are down from the 6% highs seen a year ago. There is only one bank that offers 5.00%, but only for balances up to $5,000.

If the Federal Reserve cuts rates at its meeting this month, it could mean that even lower savings rates. Even with the holiday sales going on, it’s best to start thinking about yours Rescue targets for 2025 while rates are still favorable. You can automate your savings and earn interest on any money you are able to put away until the end of the year. Here are some of the best APY savings accounts available right now:

Experts recommend comparing rates before opening a savings account to get the best APY. Enter your information below to get the best CNET partner price for your area.

How the Fed Could Affect Your Savings Rate Next Year

When the Federal Reserve raises or lowers the federal funds rate, consumer products such as savings accounts tend to follow suit. The The Fed began cutting interest rates in September when inflation cooled. Since then, the APY of savings accounts has steadily declined.

However, the savings rate can rise and fall for other reasons as well.

“While it is true that HYSAs are affected by the Fed’s decisions, not all institutions adjust their rates immediately and some may delay in order to remain competitive,” said Steven Kibbel, Certified Financial Planner and founder and CEO of Kibbel Financial Planning. “This means HYSAs continue to be a reliable option to keep your money liquid while earning more than other low-risk alternatives.”

After the Fed’s first rate cut in September, many banks tracked by CNET began cutting their savings account rates. For example, LendingClub lowered its APY from 5.30% to 5.15% on October 18, ending its streak as our top HYSA. On November 7th, it lowered it even more to 5.00% APY. Last week, its APY fell to 4.75%.

Despite a slight increase in inflation last month, a third rate cut in December is not ruled out. The Federal Reserve also takes into account other data, such as the unemployment rate. If the Fed cuts rates by another quarter of a percent in December, as many expect, APYs would likely fall even more.

This means you could see a lower savings rate in the new year. However, even if you can only save a few dollars between now and the end of the month due to holidays and expenses, any extra funds you put aside in your HYSA will help put you on track to reach your 2025 savings goals.

A high-yield savings account is still worth increasing your funds

Saving money for other short-term goals and high yield savings account is generally a good idea even if rates go down.

High-yield savings accounts still offer rates that far exceed traditional savings accounts – more than 10 times higher national average. So there’s no time to waste if you want a mat emergency fund or start a diving fund.

More importantly, high-yield savings accounts offer a safe place to park your funds.

“Overall, HYSAs remain a smart choice for savers,” Kibbel said. “Especially if you prioritize affordability and security, although it’s always wise to monitor rate trends.”

There is some degree of uncertainty as to whether rates will fall or hold steady after the Fed meets next month, but HYSA still provides plenty of value.

“In a falling rate environment, it’s still valuable for people to stash cash for short-term needs — think emergency funds, bills and savings for short-term goals — in high-yield accounts with competitive APYs,” said Alex Michalka, vice president of investment research at Wealthfront.

The key difference between using a HYSA for your emergency funds versus a CD or bond is that you can access the funds quickly without incurring a penalty. CDs and bonds are better savings tools for your long-term financial plans.

If you’re earning close to 0% on your savings, now is the time to make a change. Here are the savings rates at the start of this week compared to the start of last week:

What you should know before choosing a high yield savings account

When deciding which account and bank is best for your savings, consider the following:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Others require nothing.
• Access to the ATM: Not every bank offers cash deposits and withdrawals. If you need regular access to ATMs, check to see if your bank offers ATM fee refunds or a wide variety of in-network ATMs, said Lanesha Mohip, founder of CFO Poland and a member of CNET’s expert panel.
• fees: Look at monthly maintenance fees, withdrawals and paper statements, Mohip said. Charges may apply to your balance.
• Accessibility: If you prefer personal assistance, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider an online bank.
• Withdrawal limits: Some banks charge an excessive withdrawal fee if you make more than six monthly withdrawals. If you think you may need to earn more, consider a bank without this limit.
• Federal Deposit Insurance: Make sure your bank or credit union is insured with the FDIC or NCUA. This way, your money is protected up to $250,000 per account holder per category if the bank fails.
• Customer service: Choose a bank that is responsive and makes it easy to get help with your account if you need it. Read customer reviews online and contact the bank’s customer service to get an idea of ​​working with the bank.

Methodology

CNET reviewed savings accounts at more than 50 brick-and-mortar and online banks, credit unions and financial institutions with nationwide service. Each account was given a score between one (lowest) and five (highest). All savings accounts listed here are insured up to $250,000 per person, account category, per institution, FDIC or NCUA.

CNET evaluates the best savings accounts using 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 rated higher if it offers any of the following benefits:

• Bonuses on the account
• Automatic saving functions
• Consulting/coaching services in the field of property management
• Cash deposits
• Extensive ATM networks and/or ATM discounts for using out-of-network ATMs

A savings account may have a lower rating if it doesn’t have an easy-to-navigate website or if it doesn’t offer useful features like an ATM card. Accounts that require restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.

*APY as of December 4, 2024 based on the banks we track at CNET. Weekly Percentage Increase/Decrease from November 25, 2024 to December 2, 2024.**Varo offers 5% APY only on balances less than $5,000

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