Best Savings Rates Today, May 31, 2024: Maximize Your Savings With APYs Up to 5.55% (2024)

Though high interest rates mean it’s not a great time to be a borrower, it’s a great time to be a saver. However, where you stash your savings can make a big difference in your bottom line.

Traditional savings accounts typically earn annual percentage yields, or APYs, as low as 0.01%. But the best high-yield savings accounts currently earn APYs up to 5.55% -- more than 10 times the national average. If you want to earn the most on your extra funds, the right high-yield savings account can help you achieve your financial goals faster.

Here’s the 411 on where savings rates stand this week.

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:

Where savings rates stand this week

High interest rates have caught everyone’s attention since 2022 as the Federal Reserve steadily raised the federal funds rate 11 times to fight record inflation. While borrowing money with a credit card or loan became more expensive, banks raised rates on consumer products like savings accounts and certificates of deposit.

The Fed opted to leave the federal funds rate unchanged at its last six meetings, maintaining its target range of 5.25% to 5.50%. But experts suggest this move means savings rates are likely at their peak.

Experts expected several rate cuts to happen later this year, which would prompt savings rates to follow suit. But the most recent Consumer Price Index report revealed inflation rose 3.4% year over year -- down slightly from March’s numbers but still stubbornly higher than the Fed’s 2% target rate. Inflation has eased significantly since 2022, but the timeline for future rate cuts is still unclear.

Some experts still think rate cuts are possible in 2024, according to Elaine King, a certified financial planner. However, some economists predict that rate cuts are now less likely to happen in 2024 unless inflation begins trending downward soon. Either way, you can expect high savings rates to stick around for the foreseeable future.

How the Fed affects savings rates

The Fed doesn’t directly impact savings rates, but its decisions have ripple effects. For instance, when the Fed raises rates, many banks increase their rates for traditional and high-yield savings accounts, said Lanesha Mohip, a corporate accountant, founder of the Polished CEO and CNET expert review board member. Inversely, when the Fed lowers rates, banks drop savings rates, too.

“When the Fed changes the rates, it impacts everything,” said Mohip. That includes borrowing and savings rates. While taking out a loan or paying back debt may be more expensive, the high rates can also put extra money in your savings.

Banks can change the interest rates on savings accounts at any time. Since savings rates are variable, your APY will likely go down once the Fed drops rates. But for now, many banks are holding rates steady in anticipation of what the Fed will do next. Based on CNET’s weekly tracking, here’s where rates stand compared to last week:

Why you shouldn’t wait to open a high-yield savings account

Savings rates have been particularly high for the last few years, and you can still find high-yield savings accounts with APYs up to 5.55%. This is great news if you’re determined to grow your emergency fund or park money for any short-term savings goals. Here’s what else makes HYSAs stand out:

• High rates: HYSAs often have APYs 10 times higher (or more) than the national average, as tracked by the Federal Deposit Insurance Corporation.
• 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).
• Accessibility: If you open an HYSA at an online bank, you’ll have 24/7 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 credit union insured by the National Credit Union Administration. That means your money is safe up to $250,000 per account holder, per account type.

Factors to consider when choosing a high-yield savings account

High-yield savings accounts usually have higher APYs than traditional savings accounts. But even if the rate environment shifts, HYSAs will continue to offer significantly better APYs than traditional ones. Still, you should also consider:

• 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 reimbursem*nts or a wide range of in-network ATMs, said Mohip.
• 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.