Opening a high yield savings account? Make sure you do this first.

after Continuous hikes For more than a year, interest rates have been higher today than they have been in years. You’ve probably experienced a jump in some part of your finances — you took on a higher mortgage rate or racked up more high-interest credit card debt.

However, no one benefits from current interest rates with high-yield savings accounts can be lost Big returns this account can offer you savings balance.

If you’re considering high-yield savings as a replacement for your regular savings account, you may not know exactly Observation for what. After all, many brick-and-mortar banks still offer almost zero interest — National average today Only 0.40% APY. But there’s one thing you can do to make sure you get one Great interest rates today.

Check out today’s top savings account rates to see how much more you can earn

Do this before opening a high-yield savings account today

The target interest rate range set by the Federal Reserve can tell you a lot about the yield of a competitive savings account.

“The key word here is ‘high-yield,'” says AJ Ayers, CFP, co-founder of Brooklyn FI Financial Advisors. “So make sure you choose a savings account that pays interest close to the federal funds rate.” Specifically, your bank. Ayers recommends making sure that the annual interest rate that pays is within one percentage point of the federal funds rate.

For example, today’s federal funds rate range is 5.00%-5.25%. Moving to the higher end of that range, it means you should look for a savings account offering At least 4.25% APY today. Even as the Fed raises and lowers rates, this can help ensure that the rate you earn is competitive over time.

This is the reason Savings account rates are variable, so you’re not locked into a single rate when you open your account “As the Fed changes the federal funds rate, banks will respond and change their interest rates to savers,” Ayers said.

4 high-yield accounts to consider now

To give you an idea of ​​the great savings account options available today, we’ve rounded up a few high-yield savings accounts with at least a 4.25% APY — within 1% of the Fed funds rate.

Not only do these accounts offer competitive rates, but they also have no monthly maintenance fees and are FDIC-insured up to a $250,000 limit (per depositor and per institution).

CIT Bank: 4.85% APY

You can earn with Platinum Savings Account from CIT Bank 4.85% APY With no fees, as long as you have a balance of at least $5,000 (otherwise the yield drops to 0.25% APY). You will need a minimum deposit of at least $100 to open. With a minimum balance of $5,000 in this account earning 4.85%, you can earn $242.50 a year for a total balance of $5,242.50.

Basque Bank: 4.75% APY

The Interest Savings Account from Bask earns 4.75% APY, but there is no minimum balance requirement. You have to fund only within 15 days of opening your account If you deposit the same $5,000 balance and earn 4.75% in one year, you’ll have a total balance of $5,237.50 at the end of that year.

Bread Savings: 4.65% APY

Bread Savings offers another competitive savings account option today with a 4.65% APY. A minimum deposit of $100 is all you need to open and maintain an account. Using the $5,000 balance example, an interest rate of 4.65% would grow your savings to $5,232.50 over a year’s time.

Citizens Bank: 4.50% APY

High-yield savings account options from Citizens Bank earn 4.50% APY and only require a $0.01 minimum deposit — effectively meaning you can open your account and start earning with any balance amount as long as you deposit something.

Earning 4.50% over a year, a $5,000 deposit can result in a balance of $5,225.

Compare more of today’s top savings rates to find the right account for you now.

Bottom line

There are plenty of great ones High yield savings option on the market today, but it’s always a good idea to do your research before opening, so you can make sure you’re getting the best deal. Regardless of where the rates are, this can be a barometer to help narrow your search to find the most competitive accounts for you.

Looking for high-yield savings accounts within 1% of the federal funds rate range — which today is between 5.00% and 5.25% — might be a good place to start. With some of today’s top rates earning 4.00% to 4.50% and higher, you may benefit from starting your search with accounts earning 4.25% APY and narrowing down based on other factors that will best help you reach your savings goals.