Now's the Time to Earn an APY as High as 5.55%. Best Savings Rates for Today, July 5, 2024 (2024)

Key Takeaways

  • You can earn an APY as high as 5.55% with today’s best high-yield savings accounts.
  • Experts expect the Fed to cut rates at some point this year, so today’s APYs may be the best you’ll find for a while.
  • Even if rates fall later this year, high-yield savings accounts will continue to offer better APYs than traditional savings accounts.

High savings rates have been the story for the better part of the last two years as the Federal Reserve regularly hiked rates to fight record inflation. But with rate drops on the horizon, the clock is ticking on the opportunity to maximize your earnings.

Now's the Time to Earn an APY as High as 5.55%. Best Savings Rates for Today, July 5, 2024 (1)

Currently, the best high-yield savings accounts offer annual percentage yields, or APYs, as high as 5.55% -- more than 10 times the national average. So, if you’ve been trying to grow your emergency fund or start a sinking fund, now’s the time to switch to a high-yield savings account. Once the Fed drops rates, your APY will likely drop, too

Read on to learn where you can find today’s top savings rates.

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 Direct5.55%$500
TAB Bank5.27%$0
Newtek Bank5.25%$0
UFB Direct5.25%$0
Synchrony Bank4.75%$0
Capital One4.25%$0
Discover Bank4.25%$0
Ally Bank4.20%$0

Why do savings rates change?

The Fed doesn’t directly impact savings rates, but its decisions have ripple effects on the everyday consumer.

When the Fed raises the federal funds rate -- the interest rate US banks use to lend or borrow money to each other overnight -- banks tend to increase their rates for savings accounts. Inversely, when the Fed lowers rates, banks drop savings rates, too.

Keep in mind savings rates are variable, which means banks can change the rate on your savings account at any time.

Where savings rates stand ahead of the holiday weekend

Savings rates have been trending upward for the last two years as the Fed steadily increased the federal funds rate 11 times to fight record inflation. As a result, savings rates skyrocketed.

However, as inflation began to show signs of cooling in late 2023, the Fed opted to maintain its target range of 5.25% to 5.5% at its last seven Federal Open Market Committee meetings. As a result, savings rates have remained attractive, barely budging as banks anticipate the Fed’s next move. In fact, we haven’t seen any changes since EverBank dropped the rate on its high-yield savings account on May 31 from 5.15% APY to 5.05% APY.

Based on CNET’s weekly tracking, here’s where rates stand compared to last week:

CNET Average Savings APY

Weekly Change*

FDIC Average
4.88%No change0.45%

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

High-yield savings accounts provide a low-risk way to grow your savings while taking advantage of compound interest. Compound interest can help your money grow faster because you aren’t just earning interest on your initial deposit -- your interest also earns interest.

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.

How to find the right savings account

Though a high APY is important, you should consider more than just the APY before opening a high-yield savings account. There are other important factors you should consider before choosing the right savings accounts for your financial goals, including the following:

  • 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.
  • Fees: Look out for fees for monthly maintenance, withdrawals and paper statements. These 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.


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.

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Now's the Time to Earn an APY as High as 5.55%. Best Savings Rates for Today, July 5, 2024 (2024)


Which bank is giving 7% interest in savings accounts? ›

Currently, there are no banks with savings accounts that offer a 7% interest rate. 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 savings rate of 4% to 5% right now.

What is a good APY for a savings account? ›

Best High-Yield Online Savings Accounts of July 2024
  • BrioDirect High Yield Savings Account: 5.30% APY.
  • Ivy Bank High-Yield Savings Account: 5.30% APY.
  • TAB Bank High Yield Savings: 5.27% APY.
  • UFB Secure Savings: Up to 5.25% APY.
  • Laurel Road High Yield Savings®: 5.15% APY.
  • Bask Interest Savings Account: 5.10% APY.
Jun 19, 2024

What does 5.00% APY mean on a savings account? ›

A 5% APY means your money earns 5% interest per year. If you deposited $100 in an account that compounds annually, you'd have $105 at the end of a year. But accounts may compound monthly, weekly, daily or even continuously. The more frequent the compounding periods, the more interest you earn.

Is APY good or bad? ›

Is APR or APY better? APR measures how much interest you'll pay to borrow money; APY measures how much interest you can earn on deposits. A lower APR is better for borrowers, but a higher APY is better for savers.

Where can I get 7% on my money? ›

7% Interest Savings Accounts: What You Need To Know. Why Trust Us? As of July 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Which bank gives 7% interest rate? ›

IDFC FIRST Bank's Savings Account Interest rates table
On Balances (in ₹)Rate of Interest (% p.a.) effective from 15th May 2024
> 3 lac <= 5 lac4.00%
> 5 lac <= 10 lac7.00%
> 10 lac <= 5 cr7.25%
> 5 cr <= 50 cr7.00%
5 more rows

What is 5% APY on $1000? ›

For example, $1,000 put into an account with an annual interest rate of 5% would, in theory, earn $50 at the end of the year. However, if the rate is 5% with interest earned monthly, the APY would actually be 5.116%, earning you $1051.16 by the end of the first year.

Where can I earn 5% APY? ›

Savings accounts with 5% APY or higher
BankAPYMin. deposit to open
CIT Bank5.00% (on balances of $5,000 or more)$100
CommunityWide Federal Credit Union5.00%$1
Varo Bank5.00% on first $5,000 (3.00% on the rest)$0
12 more rows
Jun 27, 2024

What happens if you put 50000 in a high-yield savings account? ›

5% APY: With a 5% CD or high-yield savings account, your $50,000 will accumulate $2,500 in interest in one year. 5.25% APY: A 5.25% CD or high-yield savings account will bring you $2,625 in interest within a year.

How to get 5% savings? ›

You can earn 5% or more with several savings accounts, including Betterment Cash Reserve, Newtek Bank High Yield Savings Account, and more. You can also earn above 5% with several accounts through Raisin, an online savings marketplace that sets you up with high rates from partner banks.

Does APY pay out monthly? ›

APY is the percentage rate of return on your money over one year, and it includes compound interest. The interest may be compounded daily, monthly, or yearly, depending on the deposit account.

What happens if you put $500 in a CD for 5 years? ›

For example, if you deposit $500 in a five-year CD that earns a 5.15% APY, your balance by the end of five years will be $642.71, earning you $142.71 in interest. However, if the interest rate is 3.25%, your earnings will only be $586.71, a difference of $56 in interest earnings.

Do you have to pay taxes on APY? ›

The interest you earn on a high-yield savings account—or any other savings account, money market account or certificate of deposit, for that matter—is subject to state and federal income taxes.

Can I lose money in a high-yield savings account? ›

Lower risk

You can't lose your money because, just like your regular checking and savings accounts, the money is insured by the Federal Deposit Insurance Corporation up to $250,000. Of course, the APY for any savings vehicle can go up or down, especially if the Federal Reserve changes its benchmark fund rate.

Where can I get 7% on savings? ›

The best regular savings accounts
  • Co-operative Bank Regular Saver - 7% AER.
  • Skipton Building Society - 7% AER.
  • Nationwide Flex Regular Saver - 6.5% AER.
  • Lloyds Bank Club Monthly Saver - 6.25% AER.
  • Natwest Digital Regular Saver - 6.17% AER.
  • Royal Bank of Scotland Digital Regular Saver - 6.17% AER.
  • TSB Monthly Saver - 6% AER.

Where can I get 7% on a CD? ›

What banks are offering 7% interest on CDs? Currently, no U.S. banks or credit unions are offering 7% APY on CDs. During August 2023, a few credit unions were offering 7% interest on CDs, but those were limited-time offers that are no longer available.

Which bank gives 8 interest on savings accounts? ›

DCB Bank savings account interest rates

This private sector lender is offering an interest rate of 8% for savings account customers maintaining balances ranging from Rs 10 lakh to Rs 2 crore.

What bank currently has the highest savings interest rate? ›

The 5 highest-paying savings rates today
Institution NameAPYCompounding Method
TAB Bank5.27%Monthly
Newtek Bank5.25%Daily
1 more row
17 hours ago

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