If you’re keeping your emergency fund in a traditional savings account, you’re not maximizing your interest-earning potential. The best high-yield savings accounts earn annual percentage yields as high as 5.35%, more than 10 times the national average. 

Amid signs that inflation is finally cooling, now is the time to grow your savings with a high-yield savings account.

“Many high-yield savings accounts are giving depositors a return greater than today’s rate of inflation,” said Christopher M. Naghib, executive vice president of First Foundation Bank.

But you need to act now, as most experts expect the Fed to lower rates at its September meeting. That will likely trigger a decline in savings account rates. Don’t wait to take advantage of high rates to maximize your interest earnings.

Here are CNET’s picks for the banks offering the best savings account interest rates right now. 

Today’s best savings rates

Here are some of the top savings account APYs available right now:

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.

How are savings rates affected by the Fed?

The Federal Reserve doesn’t directly impact savings rates, but its decisions do have ripple effects. When the central bank meets, it assesses the US economy and may adjust the federal funds rate to help boost growth or slow down inflation. Banks tend to follow, increasing or decreasing their short-term rates according to how the Fed votes. 

After the Federal Open Market Committee’s meeting last week, Fed Chair Jerome Powell noted that interest rate cuts “could be on the table at the September meeting.”

Starting in March 2022, the Fed raised rates 11 times to fight record inflation. However, as inflation began cooling in late 2023, the Fed paused rates. As a result, savings rates remained attractive, staying high for months.

But with three meetings left this year, some experts predict that the Fed could still make multiple cuts in 2024. And we’re already starting to see banks lower APYs in anticipation. Over the past few weeks, we’ve seen My Banking Direct, Laurel Road, TAB Bank, Rising Bank and UFB Direct lower rates on their high-yield savings accounts.

Here’s where savings rates stand compared to last week:

What to consider when picking a high-yield savings account 

It pays to look for accounts with attractive APYs. But don’t stop there. Weigh these important factors to find an account that complements your financial goals: 

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account -- typically, from $25 to $100. Others don’t require anything. 
• ATM access: Not every bank offers cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM fee reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of the Polished CFO and CNET expert review board member. 
• Fees: Look out for fees for monthly maintenance, withdrawals and paper statements, said Mohip. The charges can eat into your balance.
• Accessibility: If you prefer in-person 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 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: Make sure your bank or credit union is either insured with the FDIC or the NCUA. This way, your money is protected up to $250,000 per account holder, per category, if there’s a bank failure.
• Customer service: Choose a bank that’s responsive and makes it easy to get help with your account if you need it. Read online customer reviews and contact the bank’s customer service to get a feel for working 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 FDIC or NCUA.

CNET evaluates the best savings accounts using 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

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