- You can find savings rates as high as 5% APY with the best high-yield-savings accounts.
- More interest rate cuts could come this year, but there’s still time to take advantage of attractive APYs.
- The sooner you open a high-yield savings account, the more interest you stand to earn.
Now is a good time to sock away money in the best high-yield savings accounts, which boast annual percentage yields, or APYs, over 4%. Experts say these accounts are ideal for short-term savings goals because you can make regular contributions, earn interest on your balance and access your money quickly.
Usually, when the Federal Reserve lowers its federal funds rate range, banks move interest rates in the same direction. So if the central bank makes additional cuts this year, savings rates will likely sink, too.
That doesn’t mean rates will drop to zero. Experts still stand by this account and its flexibility. But if you want to maximize earnings on your savings, it’s best to open a HYSA account soon before rates fall further.
Here’s where rates stand and factors to help you choose the best account for your short-term savings needs.
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 |
| Laurel Road | 4.15% | $0 |
| Synchrony Bank | 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 APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
How much the best savings rates have dropped over the past week
| Last week’s CNET average savings APY* | This week’s CNET average savings APY | Weekly change |
|---|---|---|
| 4.20% | 4.18% | -0.48% |
Should you open a high-yield savings account?
Rates aren’t as high as the 5% APYs we saw from some banks last year. Rates are hovering below 4.50% APY, and experts predict that the decline will continue.
“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.”
Savings rates are variable and will continue to fluctuate, but earned interest adds up in the long run, Flores pointed out. Plus, rates for 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’s offering 0.42% for the same deposit you’ll earn $3.60 over the same time frame.
How to choose the best high-yield savings account
Here are some things to look for when opening a HYSA.
- Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, typically between $25 and $100. Others don’t require anything.
- 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.
- 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’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. 13, 2025, based on the banks we track at CNET. Weekly percentage increase/decrease from Jan. 6, 2025, to Jan. 13, 2025.
**Varo offers 5% APY only on balances of less than $5,000.