- The average savings rate is still above 4% APY, but only one bank has a 5% APY.
- Many banks have cut savings rates slightly this month ahead of the Federal Reserve meeting.
- Now is a good time to take advantage of high-yield savings accounts, many of which do not require a minimum balance or deposit to earn interest.
If you’ve set financial goals this year, like building an emergency fund or saving money to move, the best high-yield savings accounts can help. As with a traditional savings account, you can regularly deposit and withdraw money when you need it, but you can earn more interest on your balance.
Annual percentage returns for the best high-yield savings accounts are currently over 4%, which is nearly 10 times higher than the national average of 0.42% APY.
At the moment, savings account rates are mostly flat from week to week, with small decreases this month. So there’s still time to earn interest on that financial goal you’ve set for this year, but don’t expect to max out those favorable savings APYs. Here’s a closer look at where the rates stand and the banks that offer them.
Best savings rates today
| Bank | APY* | Min. deposit to open |
|---|---|---|
| Hang on | 5.00%** | $0 |
| Newtek Bank | 4.55% | $0 |
| Lending Club | 4.50% | $0 |
| Basque Bank | 4.50% | $0 |
| EverBank | 4.30% | $0 |
| Laurel Street | 4.15% | $0 |
| Synchronous banking | 4.10% | $0 |
| American Express | 3.80% | $0 |
| Capital One | 3.80% | $0 |
Experts recommend comparing rates before opening a savings account to get the best possible APY. Enter your information below to get the best CNET partner rate for your area.
Average savings rates from week to week
| Last week’s average CNET savings APY* | This week’s CNET savings average APY | Weekly change |
|---|---|---|
| 4.20% | 4.18% | -0.48% |
Savings rates may continue to hold steady
Experts predict the Fed will keep rates steady at this month’s Federal Open Market Committee meeting, and banks are likely to follow suit. If so, you’ll have more time to earn interest on your savings at over 4% APY. But even if rates fall, it pays to have a high-yield savings account.
“People can be hesitant about whether it’s worth opening a HYSA with the lower fees we’re currently seeing,” said Danielle Flores, a member of CNET’s Money Expert Review Board and founder of I Like to Dabble. “It’s always worth it to earn a little more from the money already saved.”
Savings rates are variable and will continue to fluctuate, but the interest earned adds up over the long term, Flores noted. Plus, the fees on HYSAs will still be higher than most traditional savings accounts, so you’ll earn more interest on your money.
For example, let’s say you make a one-time deposit of $500 into a HYSA with a 4.2% APY. Assuming the rate stays the same for the next 12 months, you’ll earn $21.60 in interest. If you keep your money in a traditional savings account that offers 0.42% on the same deposit, you’ll earn $3.60 over the same time period.
What to consider when opening a high-yield savings account
Since credit unions and online-only banks are more likely to offer high-yield savings accounts, this could change the way you manage your savings. For example, some online-only banks do not accept cash deposits and may not have physical locations for personal assistance. Here are some other factors to consider when opening a HYSA.
- Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Others ask for nothing.
- 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 refunds or a wide range of in-network ATMs, said Lanesha Mohip, founder of CFO Polished and another board member. of CNET Expert Review.
- Fees: Watch out for monthly maintenance fees, withdrawals and paper statements, Mohip said. Fees can eat into your balance.
- Accessibility: If you prefer personal 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 do more, consider a bank without this limit.
- Federal Deposit Insurance: Make sure your bank or credit union is insured with the Federal Deposit Insurance Corporation or the National Credit Union Administration, respectively. 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 is responsive and makes it easy to get help with your account if you need it. Read customer reviews online 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 serving nationwide. 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 compare 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 be ranked higher for providing any of the following benefits.
- Account bonuses
- Automated savings features
- Wealth management consulting/coaching services
- Cash deposits
- Extensive ATM networks and/or ATM discounts for use outside the ATM network
A savings account may be rated lower if it doesn’t have an easy-to-navigate website or if it doesn’t offer useful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*APY as of January 17, 2025, based on banks we track at CNET. Weekly percentage increase/decrease from January 6, 2025 to January 13, 2025.
**Varo offers 5% APY only on balances of less than $5,000.
