Since interest rates dropped in September, most high-yield savings accounts require more money and more fees, but a few of them are still a great deal

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The Federal Reserve has cut interest rates twice since late July, and there may be more to come.

Lower interest rates make borrowing money easier, but reduce the earning potential on savings accounts. But that doesn't mean you should stop saving, or put off starting; you may just want to be more strategic about where you put your money.

The average general savings account earns 0.09%. If you want a shot at beating inflation, you'll want to look for a high-yield account with an interest rate above 2%. However, it's also important to consider any fees, transfer limitations, and minimum deposit or balance requirements. The account should still be desirable to you even if the interest rate fluctuates.

While several traditional banks still offer over 2% APY on their high-yield savings accounts, most require large minimum balances or monthly fees, making them less-than-ideal for average savers. While others, such as HSBC and MySavingsDirect, are more accessible to the masses, we think two robo-advisers still have an edge.

For new savers, people with small balances, anyone looking to segue into robo-investing, or someone who wants to grow their money risk free, Wealthfront's Cash Account and Betterment's Everyday Savings account are great options.

Wealthfront

  • 2.07% APY (as of October 2019)
  • $1 minimum to open
  • No fees
  • Unlimited transfers
  • Up to $1 million insured by the FDIC
  • Mobile app access

While technically a cash account, Wealthfront's account has the same features as a high-yield savings account: safety, growth, and accessibility.

Wealthfront debuted its Cash Account in early 2019 with a 2.24% APY and had been steadily increasing it until the Fed announced a series of rate cuts. It still earns 2.07% annually and requires just $1 to open.

With Wealthfront, you can also save up money in your high-yield account to invest in low-cost index funds starting with as little as $500, set up and contribute to an IRA, or save in a 529 college plan.

Learn more about the Wealthfront Cash Account »

Learn more about investing with Wealthfront »

Betterment

  • 2.04% APY if you join the waitlist for a checking account (as of October 2019)
  • $10 minimum to open
  • No fees
  • Unlimited transfers
  • Up to $1 million insured by the FDIC
  • Mobile app access

You can open a Betterment Everyday Savings account with as little as $10 and start earning the 2.04% APY immediately if you join the waitlist for Betterment's checking account, set to debut by the end of 2019. Otherwise, the APY on your savings is 1.79%.

For longer-term growth on your money, Betterment offers customized investment portfolios in its taxable brokerage accounts, IRAs for retirement savings and investing, and trust accounts. You can easily transfer money from your savings account into investments. Investments of $100,000 to $249,000 are managed free for six months, and investments of $250,000 or more are managed free for a year.

Learn more about the Betterment Everyday Savings Account »

Learn more about investing with Betterment »

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Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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