We've been tracking savings rates for almost two years at CNET, and we've watched as savings rates have dropped slowly over the past year. Now, there's only one bank on the list we track that's still offering a high-yield savings account over 5%: Varo Bank.

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.

Now, most of the top savings accounts offer APYs of just under 5% or 4%, While that's still much higher than the FDIC average savings rate of 0.43%, it's clear that savings rates are on the way down.

In the meantime, you can still earn a competitive return on your savings by opening a high-yield savings account. A high-yield savings account is a great place to store your emergency savings and money for other short-term goals, like a holiday gift fund or vacation fund. 

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. Enter your information below to get CNET's partners' best rate for your area.

Why are savings rates dropping?

When the Federal Reserve raises or lowers the federal funds rate, consumer products like savings accounts tend to follow suit. The Fed started cutting interest rates in September as inflation cooled. Since then, savings account APYs have been dropping steadily.

However, savings rates can rise and fall for other reasons.

"While it's true that HYSAs are influenced by the Fed's decisions, not all institutions adjust their rates immediately, and some may hold off to stay competitive," said Steven Kibbel, a certified financial planner and founder and CEO of Kibbel Financial Planning. "This means HYSAs continue to be a reliable option for keeping your money liquid while earning more than other low-risk alternatives."

After the Fed issued its first rate cut this year in September, many CNET-tracked banks started lowering their savings account rates. For example, LendingClub cut its APY from 5.30% to 5.15% on Oct. 18, ending its streak as our top HYSA. On Nov. 7, it lowered it even further to 5.00% APY. Last week, its APY dropped to 4.75%.

Despite a slight inflation uptick in 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. If the Fed cuts rates another quarter-percentage-point cut in December, as some expect, APYs would likely sink even more.

Is a high-yield savings account still a good idea?

Stashing your emergency fund and money for other short-term goals in a high-yield savings account is generally a good idea, even if rates go down. High-yield savings accounts will still offer better rates than traditional 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."

While there's some degree of uncertainty around whether rates will fall or hold steady following next month's Fed meeting, a HYSA still provides plenty of value.

"In a declining rate environment, it's still valuable for people to store cash for shorter-term needs -- think emergency funds, bills and savings for near-term goals -- in high-yield accounts with competitive APYs," said Alex Michalka, Ph.D., VP of investment research at Wealthfront.

The key difference between using a HYSA for your emergency funds compared to a CD or bond is that you can access the funds quickly without incurring a penalty. 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. Here's where savings rates stand at the start of this week compared to the start of last week:

How to choose the best high-yield savings account

When you're deciding which account and bank are best for your savings, here's what to look for:

• 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.

*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.
**Varo offers 5% APY only on balances of less than $5,000

More savings advice: