Today’s Best Savings Rates, Feb. 16, 2024: Now’s the Time to Earn a High APY on Your Savings  (2024)

The last few years have been a great time for savers. With the best high-yield savings accounts earning more than 10 times the national average of 0.47%, savers have been able to maximize their interest earnings with accounts that earn more than a 5% annual percentage yield, or APY.

Today’s Best Savings Rates, Feb. 16, 2024: Now’s the Time to Earn a High APY on Your Savings (1)

Experts predict savings rates will remain high until the Fed begins dropping rates, likely in mid-to-late 2024. This week’s Consumer Price Index release has also paused some talk of rates going down in the near future. The price of goods rose 3.1% in January, as the U.S. struggles to shake off inflation for good.

If you’re earning less than 1% in a traditional savings account, now’s the time to switch. The sooner you do so, the more interest you stand to earn.

Key takeaways

  • A high-yield savings account can help you grow your money faster.
  • Top high-yield savings accounts earn APYs as high as 5.35%.
  • Savings rates are likely at their peak based on signs from the Fed that rate cuts are on the table later this year.

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:

BankAPYMin. deposit to open
My Banking Direct5.35%$500
TAB Bank5.27%$0
Newtek Bank5.25%$0
UFB Direct5.25%$0
Synchrony Bank4.75%$0
Ally Bank4.35%$0
Capital One4.35%$0
Discover Bank4.30%$0

What you need to know about savings rates this week

Rates took off in 2022 after the Fed began increasing its benchmark federal funds rate to curb soaring inflation. When the Fed raises the benchmark rate, banks typically follow suit, increasing rates on consumer products like savings accounts, certificates of deposits, loans and credit cards. But with the Fed pausing rate hikes at its last four meetings, banks across the board have left savings rates largely untouched.

Still, experts believe that savings rates will remain high until the Fed begins dropping rates, with signals that rate cuts are possible later this year.

“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.”

Here’s where rates stand compared to last week:


CNET Average Savings APY

Weekly Change*

FDIC Average
4.88%-0.20%0.47%

The average APY for the top high-yield savings accounts we track at CNET is 4.88% -- with some accounts offering as high as 5.35%. We haven’t seen any significant changes in weeks, and the only individual change we’ve seen recently was Discover’s high-yield savings account, which decreased its rate from 4.35% to 4.30% on Feb. 8.

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 need a high-yield savings account

Whether you want to open a savings account for a short-term financial goal or to build an emergency fund, a high-yield savings account can help you reach your goals sooner. Even after rates fall this year, 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. This week’s Consumer Price Index release has paused some talk of rates going down relatively soon. The price of goods rose 3.1% in January, as the U.S. struggles to shake off inflation for good.

Here’s what makes HYSAs stand out:

  • High rates: HYSAs often have APYs 10 times higher (or more) than the national FDIC 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 NCUA-insured credit union. 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.

How to select the right savings account

High-yield savings accounts usually have higher APYs than traditional savings accounts. But you should consider more than just the APY before opening a HYSA. 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 Federal Deposit Insurance Corporation or a credit union that belongs to the National Credit Union Administration. 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.

Recommended Articles

Best High-Yield Savings Accounts for February 2024

Best High-Yield Savings Accounts for February 2024

By Dashia Milden

6 Reasons Why You Should Own Multiple Savings Accounts

6 Reasons Why You Should Own Multiple Savings Accounts

By Toni Husbands

64% of Americans Are Missing Out on Hundreds in Savings Account Interest. Are You One of Them?

64% of Americans Are Missing Out on Hundreds in Savings Account Interest. Are You One of Them?

By Danni Santana

Loud Budgeting is Taking TikTok by Storm. Why Experts Love this 2024 Money Trend

Loud Budgeting is Taking TikTok by Storm. Why Experts Love this 2024 Money Trend

By Dashia Milden

Today’s Best Savings Rates, Feb. 16, 2024: Now’s the Time to Earn a High APY on Your Savings  (2024)

FAQs

Which bank gives 7% interest on savings accounts? ›

As of August 2024, there are no banks are offering 7% interest rates on savings accounts. If you can find a savings account with a 7% APY, you'll earn about 15X more than the national savings rate. It's much more common to find a high-yield savings account with rates between 4% and 5% right now.

How high will savings interest rates go in 2024? ›

According to the Summary of Economic Projections, the Fed may implement up to three 25-basis point interest rate cuts in 2024—bringing the federal funds rate closer to 4.60%. If this happens, it won't be surprising to see banks following suit and decreasing their savings account rates.

Which bank has the best APY rate? ›

Summary of Best High-Yield Savings Accounts of 2024
AccountAnnual Percentage YieldLearn More CTA text
TAB Bank High Yield Savings5.02% APYLearn More
EverBank Performance℠ Savings5.05% APYLearn More
BrioDirect High Yield Savings Account5.30% APYLearn More
Ivy Bank High-Yield Savings Account5.30% APYLearn More
7 more rows

Who has 5% interest on savings? ›

5% interest savings accounts
Savings AccountAPY
EverBank Performance℠ Savings5.05% APY
TAB Save Account5.02% APY
Salem Five Direct eOne Savings5.01% APY
CIT Bank Platinum Savings5.00% APY on balances of $5,000 or more; 0.25% APY on balances under $5,000
19 more rows
4 days ago

How can I get 7% interest on my money? ›

Two credit unions pay over 7% APY on accounts right now: Landmark Credit Union and OnPath Rewards High-Yield Checking. However, these are both checking accounts with limitations on eligible balances. Plenty of high-yield savings accounts pay over 5% APY on your total balance without making you jump through hoops.

Where can I get 8% interest on my money? ›

Currently, no banks offer an interest rate of 8% on savings accounts. However, some banks provide a 7% APY on checking accounts. These include Landmark Credit Union Premium checking account with an APY of 7.50%, and OnPath Credit Union High Yield checking account with an APY of 7.00%.

What will CD rates be in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Can you get 6% on a CD? ›

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

How long will CD rates stay high? ›

If you're looking for a safe place to store your savings—and earn a competitive rate so your money can grow faster—it's hard to beat a CD. Interest rates are the highest in about a decade and will likely stay elevated through 2024.

Where can I earn 5% APY? ›

Savings accounts with 5% APY or higher
BankAPYMin. deposit to open
EverBank5.05%$0
TAB Bank5.02%$0
CIT Bank5.00% (on balances of $5,000 or more)$100
DollarSavingsDirect5.00%$0
12 more rows
Aug 3, 2024

Who has the highest paying CD right now? ›

The highest certificates of deposit (CDs) rates today are offered by Merchants Bank of Indiana (5.92%), First Federal of Lakewood (5.61%), Maries County Bank (5.51%) and Shoreham Bank (5.50%). You can see the full list of the highest-paying CDs here.

Which bank gives 8% interest? ›

According to the DCB Bank website, the new rates are effective May 22, 2024. The bank is offering the highest FD interest rate of 8% to general customers and 8.55% for senior citizens after the revision in tenure from 19 months to 20 months. The highest savings account interest rate offered is up to 8%.

Where can I make 5% on my money? ›

3 Types of Accounts Make It Easy to Earn 5% or More

The three ways to do this, while incurring virtually no risk, are high-yield savings accounts, money market accounts, and certificates of deposit (CDs) held at federally insured institutions.

Where can I get 5% interest on my savings? ›

Summary of the Best 5% Interest Savings Accounts of 2024
AccountForbes Advisor RatingLearn More CTA text
M1 High-Yield Savings Account4.3Learn More
Bask Interest Savings Account4.2Learn More
UFB Portfolio Savings4.1
4 days ago

Is Capital One high-yield savings good? ›

Top perks. 4.25% APY: If you're opening a high-yield savings account, it's likely because you're looking to get better returns on your savings. The Capital One 360 Performance Savings is up there in the ranks of the best online savings accounts due to its higher-than-average APY on all balances.

Where can I get 7% on savings? ›

The best regular savings accounts
  • First Direct Regular Saver - 7% AER.
  • Co-operative Bank Regular Saver - 7% AER.
  • Skipton Building Society - 7% AER.
  • Nationwide Flex Regular Saver - 6.5% AER.
  • Vernon BS Online Regular Saver – 6.5% AER.
  • Lloyds Bank Club Monthly Saver - 6.25% AER.
  • Natwest Digital Regular Saver - 6.17% AER.

Where can I get 7% on a CD? ›

Right now, there aren't any financial institutions offering 7% interest on a CD. However, California Coast Credit Union is offering a 5-month Celebration Certificate with a 9.50% APY.

Which bank gives 7% interest in RD? ›

Major Bank's Best RD Interest Rates 2024
BankGeneral Interest RatesSenior Citizen Interest Rates
IDBI Bank7.00% – 7.15%7.50% –7.65%
Citibank2.75% – 3.00%3.25% – 4.00%
Canara Bank4.45% – 5.25%4.95% –5.75%
Indian Bank6.25% – 6.30%6.75% – 6.80%
28 more rows

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Twana Towne Ret

Last Updated:

Views: 6349

Rating: 4.3 / 5 (64 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Twana Towne Ret

Birthday: 1994-03-19

Address: Apt. 990 97439 Corwin Motorway, Port Eliseoburgh, NM 99144-2618

Phone: +5958753152963

Job: National Specialist

Hobby: Kayaking, Photography, Skydiving, Embroidery, Leather crafting, Orienteering, Cooking

Introduction: My name is Twana Towne Ret, I am a famous, talented, joyous, perfect, powerful, inquisitive, lovely person who loves writing and wants to share my knowledge and understanding with you.