There’s Still Time To Increase Interest To Reach Your Savings Goals. Today’s Savings Rates, December 11, 2024

There’s still time to grow your savings with one of our high-yield savings accounts. But even if rates drop, a savings account can still help you reach your financial goals.

Opening a HYSA is an easy way to earn interest on money you may need for immediate access, such as an emergency fund. But our CNET Money expert and Save My Cents founder Shang Saavedra also likes that having a separate account can help prevent you from spending your money unnecessarily.

“The psychological trick in these accounts is that it’s money that’s not in your mind,” Saavedra said. “Most people pay attention to how much money is in their checking account, but not so much in savings accounts.”

If you set up automatic deposits with your account, the savings can really add up. Here’s where your money stands so you can earn more interest as you work toward your savings goal.

Experts recommend comparing rates before opening a savings account to get the best possible APY. Enter your information below to get the best estimate for CNET partners in your area.

Savings rates could ease slightly after next week’s Fed meeting

The Federal Reserve meets Dec. 17 to 18, and many experts expect another reduction of the average of 25 points.

If the Fed chooses to cut, most savings rates are expected to decline in the coming weeks. But that doesn’t mean you’ll see your high-interest savings account rate drop immediately.

“While it is true that HYSAs are influenced by the Fed’s decisions, not all institutions adjust their rates quickly, and some may not delay to remain competitive,” said Steven Kibbel, certified financial planner and founder and CEO of Kibbel Financial Planning.

Therefore, if a bank is looking to attract new customers, it may increase its savings rates to encourage people to sign up for a new account.

Why HYSA is still a smart choice for your savings

Experts agree that high-yield savings accounts are the best places to save money for short-term goals. They have government insurance up to $250,000 per account type with the bank, and most offer easy access to your money if you need to withdraw it quickly.

Think of the interest you earn as an added bonus. “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.”

Even if savings accounts continue to decline, you’ll still earn more interest than you would with a regular savings account with a near 0% APY. High-yield savings accounts still offer rates more than 10 times the national average.

“In a shrinking environment, it’s still important for people to keep cash to meet short-term needs — think emergency funds, debt and saving for near-term goals — in high-yield accounts with competitive APYs,” said Alex Michalka, vice president. investment research at Wealthfront.

If you have money set aside for long-term savings, you might consider locking in a certificate of deposit while rates are high.

7 things to consider before opening a high-yield savings account

When deciding which account and bank is right for your savings, here’s what to look for:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Some don’t need anything.
• ATM access: Not all banks offer cash deposits and cash withdrawals. If you need frequent access to an ATM, check to see if your bank offers ATM cashback or a variety of in-network ATMs, says Lanesha Mohip, founder of the CFO review board Polished and CNET.
• Payments: Look at monthly maintenance fees, withdrawals and paper statements, says Mohip. Charges can eat up your balance.
• Accessibility: If you prefer to be served in person, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider online banking.
• Withdrawal limits: Some banks charge a higher withdrawal fee if you withdraw more than six months. If you think you might need to do more, consider an unlimited bank.
• Federal deposit insurance: Make sure your bank or credit union is FDIC or NCUA insured. This way, your money is protected up to $250,000 per account holder, per category, in the event of a bank failure.
• Customer service: Choose a bank that is responsive and makes it easy to get help with your account when you need it. Read customer reviews online and contact the bank’s customer service to get a feel for dealing with the bank.

How to do it

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with national 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 class, per institution, by the FDIC or NCUA.

CNET evaluates the best savings accounts using a set of criteria that compares annual percentage yield, monthly fees, minimum deposit or balance and access to physical branches. None of the banks on our list charge a monthly maintenance fee. An account will be ranked higher by offering any of the following benefits:

• Account bonuses
• Automatic saving features
• Wealth consulting/coaching services
• The deposit
• Multiple ATM networks and/or ATM discounts for out-of-network ATM usage

A savings account may be rated low if it doesn’t have an easy-to-navigate website or doesn’t offer convenient features like an ATM card. Accounts that impose restrictive residency requirements or payments that exceed monthly transaction limits may also be limited.

*APYs as of Dec. 11, 2024, based on the banks we track on CNET. Weekly percentage increase/decrease from Dec. 2, 2024, to Dec. 9, 2024.
**Varo offers 5% APY only on balances under $5,000

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