Today’s Best Savings Rates, Jan. 29, 2024: Top High-Yield Savings Accounts Earn APYs Up to 5.35% (2024)

High-yield savings accounts offer not only a safe place to stash your cash, but also the opportunity to earn a competitive annual percentage yield, or APY. Today’s top high-yield savings accounts still earn APYs over 5% -- with some of the best as high as 5.35%.

But all eyes are on the Federal Reserve as it prepares for this week’s Jan. 30-31 Federal Open Market Committee meeting. And it’s likely that the Fed will hold the federal funds rate steady once again, experts say.

“While I don’t have a crystal ball, I think that the Fed will likely hold off on making any changes at the next meeting at the end of January,” said Dana Menard, founder of Twin Cities Wealth Strategies. “The Fed usually likes to see a bit more stability before making moves in the opposite direction they just came from.”

If you’re earning a paltry interest rate in a traditional savings account or next to nothing in a standard checking account, now’s the time to take advantage of high rates before they drop.

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:

Savings rates are expected to remain elevated ahead of this week’s Fed meeting

High-yield savings accounts have been particularly attractive since the early days of 2022 when the Federal Reserve started steadily raising interest rates to combat inflation. But with the last three Fed meetings resulting in rate hike pauses, the end of 2023 saw savings rates plateau.

Here’s where they are compared to last week:

The Fed paused the federal funds rate at a target rate of 5.25% to 5.5% at the end of 2023, and experts predict this week’s meeting on Jan 30-31 will result in another pause. Still, rate cuts are expected to begin later this year based on indications from the central bank at their last meeting.

“2023 was a great year for savers, and while rates are still high, they are expected to trend downward in the spring,” said Ben McLaughlin, chief marketing officer and president of digital savings marketplace Raisin. “Now is an opportune time for savers to take advantage of high interest rates on HYSAs.”

Since savings rates are variable, that means your APY is likely to go down in the coming months. So the sooner you open a high-yield savings account, the longer you can enjoy a great rate.

Why you should open a high-yield savings account now

The sooner you open a savings account, the longer you’ll be able to enjoy high rates. Even after rates fall, high-yield savings accounts will continue to offer significantly better APYs than traditional ones. So, don’t let anticipated rate drops stop you from making the switch. Opening an HYSA can be a smart strategy in any rate environment.

Here’s what makes HYSAs stand out:

• High rates: HYSAs often have APYs 10 times higher (or more) than the Federal Deposit Insurance Corporation’s national average.
• 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). CDs, another popular savings product, charge a penalty if you take out funds before the term is up.
• Accessibility: If you open an HYSA at an online bank, you’ll enjoy 24/7 account 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.

If you’re earning less than 1% with your current savings account -- some big banks offer as little as 0.01% APY -- you don’t have to close your existing account to enjoy higher rates. You can open a new account from an online bank in minutes and set up recurring transfers or direct deposits to start funding it.

What to look for in a high-yield savings account

In addition to a competitive APY, you should also keep these factors in mind when comparing savings accounts:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account -- typically, from $25 to $100. Others don’t require anything. How much you have to deposit initially can help you narrow down your options.
• Fees: Monthly maintenance and other fees can eat into your balance. Avoid unnecessary charges by looking for a bank with low or no fees.
• Accessibility: If in-person banking is important to you, look for a bank with physical branches. If you’re comfortable managing your money digitally, look for an online bank with a user-friendly app with all the features you need.
• 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: Look for a bank that belongs to the FDIC or a credit union that belongs to the NCUA. Accounts at these institutions are protected up to $250,000 per account holder, per category in the event of bank failure
• Customer service: You want a bank that’s responsive and offers convenient support options if you ever need assistance with your account. Read online customer reviews to see what current customers say about their experiences. You can also contact customer service to get a feel for what it would be like to work 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 Federal Deposit Insurance Corporation or National Credit Union Administration.

CNET evaluates the best savings accounts with 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.

An account will rank lower if it doesn’t have a professional-looking website or doesn’t provide an ATM card, or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.