- You can still earn over 4% APY on your savings with today’s rates.
- If the Fed leaves interest rates alone this week, APYs may hold steady, too.
- A high-yield savings account can still be valuable even if rates fall.
Thinking of switching from a traditional savings account to one of the best high-yield savings accounts? Now’s the time. Many credit unions and online-only banks are still offering annual percentage yields over 4%, with the highest at 5% APY. That’s over 10 times the national average of 0.41%.
A year ago, the best savings rates were over 5% APY. But as inflation showed signs of cooling toward the end of the year, the Federal Reserve lowered rates three times. Banks mostly followed suit, cutting APYs on high-yield savings accounts.
Even if the Fed holds rates steady at its meeting this week as expected, we don’t recommend waiting. Banks could still decide to lower savings rates further. To maximize earnings on money you’re already saving, here are the banks currently offering the best rates and what to consider before opening an account.
Today’s best savings rates
Bank | APY* | Min. deposit to open |
---|---|---|
Varo | 5.00%** | $0 |
Newtek Bank | 4.70% | $0 |
LendingClub | 4.50% | $0 |
Bask Bank | 4.50% | $0 |
EverBank | 4.40% | $0 |
Synchrony Bank | 4.10% | $0 |
Laurel Road | 4.00% | $0 |
American Express | 3.80% | $0 |
Capital One | 3.80% | $0 |
Experts recommend comparing rates before opening a savings account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
How does the Federal Reserve impact savings rates?
When the central bank raises or lowers its federal funds rate range, banks tend to follow suit by moving borrowing and savings rates in the same direction. When the Fed slashed interest rates to spur spending at the beginning of the pandemic, for example, savings rates dropped, too.
With inflation inching back up recently, most experts predict that the central bank won’t lower interest rates again at this week’s Federal Open Market Committee meeting. If rates hold steady, you may have more time to earn interest on your savings at the current rates.
Regardless of what the Fed does this year, a high-yield savings account should still be a part of your money strategy, experts say. In addition to earning interest, the accounts offer flexibility to deposit and withdraw money when you need it.
“People may hesitate if it’s worth it to open a HYSA with the lower rates we are currently seeing,” said Danielle Flores, a CNET Money Expert Review Board member and founder of I Like to Dabble. “It is always worth it to earn a little extra on your already saved money.”
💰You can earn up to 4.65% APY on the best CDs. Check out today’s rates.
Average savings rates from week to week
Last week’s CNET average savings APY* | This week’s CNET average savings APY | Weekly change |
---|---|---|
4.18% | 4.16% | -0.48% |
Features to consider in a high-yield savings account
Since credit unions and online-only banks are most likely to offer high-yield savings accounts, that may change how you manage your savings. For example, some online-only banks don’t accept cash deposits and may not have physical locations for in-person assistance. Here are some other factors to consider when opening a HYSA.
- Account requirements: Some HYSAs require a minimum amount to open an account, typically between $25 and $100. Others don’t have any minimums. You should be aware of balance requirements to ensure your account stays in good standing and continues earning interest.
- 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 reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of the Polished CFO and another CNET Expert Review Board member.
- Fees: Look out for fees for monthly maintenance, withdrawals and paper statements, said Mohip. The 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 may need to make more, consider a bank without this limit.
- Safety and security: Make sure your bank is insured with the Federal Deposit Insurance Corporation — or the National Credit Union Administration for credit unions. This way, your money is protected up to $250,000 per account holder, per category, if the bank fails.
- 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.
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 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.
*APYs as of Jan. 24, 2025, based on the banks we track at CNET. Weekly percentage increase/decrease from Jan. 13, 2025, to Jan. 20, 2025.
**Varo offers 5% APY only on balances of less than $5,000.
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