Savings APYs Hold Steady After the Fed Leaves Rates Alone. Today’s Best Savings Rates for Jan. 31, 2025

Since the Federal Reserve voted to hold rates steady this month, there’s a chance your savings rate could do the same. Currently, the best high-yield savings account rates have APYs over 4%. 

There’s still a chance that the central bank will cut rates later this year, but rates are holding steady for now. And since banks usually move in the same direction as the central bank, your savings rate may remain unchanged for the coming weeks.

However, we don’t recommend waiting to see if these rates stick around since many factors influence a bank’s decision to raise or lower APYs. Here’s more on the best savings rates and the banks that offer them. 

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 Fed’s decision affect savings rates?

Since the Federal Reserve decided to hold rates steady, there’s a chance savings rates could do the same. Here’s why. 

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.

The best savings rates were well over 5% APY a year ago. But as inflation showed signs of cooling toward the end of the year, the Fed lowered rates three times. Banks mostly followed the Fed’s lead, cutting APYs on savings accounts.

Citing a strong jobs market and rising inflation, the Fed left rates alone this week, so you may have more time to earn interest on your savings at the current rates. We still don’t recommend waiting because banks could decide to lower savings rates further.

Experts say that a high-yield savings account should still be a part of your money strategy this year. 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.

What to look for when choosing 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 provides 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. 30, 2025, based on the banks we track at CNET. Weekly percentage increase/decrease from Jan. 20 to Jan. 27, 2025.

**Varo offers 5% APY only on balances of less than $5,000.