- APYs for the best high-yield savings accounts can be as high as 5%.
- The central bank began cutting rates last fall, and banks generally followed.
- Opening an account today can help you earn more interest before rates drop again.
Savings goals should be an important part of your financial plan This year. Putting money aside each month is a good way to grow your nest egg and keep it in one of the best high yield savings accounts can help you earn more interest.
The best high-yield savings accounts earn up to 5% annual percentage yield, or APY. While the highest rates may not be as high as they were a year ago, they are still more than 10 times higher than they were a year ago. national average.
APYs have been slowly declining since the start of the Federal Reserve reduce interest rates last year. So now is a good time to take advantage of higher savings rates to grow your emergency fund or start a sinking fund for a vacation or a big purchase.
Read on to see CNET’s picks for the best high-yield savings accounts.
Today’s best savings rates
| Bank | APY* | Min. deposit to open |
|---|---|---|
| Varo | 5.00%** | $0 |
| Newtek Bank | 4.70% | $0 |
| Loan Club | 4.50% | $0 |
| Bask Bank | 4.50% | $0 |
| EverBank | 4.40% | $0 |
| Sync 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 the best rate from CNET’s partners in your area.
How a High Yield Savings Account Can Help You Earn More Interest
Experts predict the Fed will hold rates steady at next week’s Federal Open Market Committee meeting, and banks will likely follow suit. If so, you’ll have more time to earn interest on your savings with an APY above 4%. But even if rates fall, a high-yield savings account is still worth it.
“People may be hesitant about whether it’s worth opening a HYSA with the lower rates we’re seeing now,” said Danielle Floresmember of the CNET Money Expert Review Board and founder of I Like to Dabble. “It’s always worth it to earn a little extra on your already saved money.”
Savings rates are variable and will continue to fluctuate, but the interest earned accumulates over the long term, Flores emphasized. Plus, HYSA rates will always 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 an APY of 4.2%. Assuming the rate stays the same over the next 12 months, you’ll earn $21.60 in interest. If you keep your money in a traditional savings account offering 0.42% for the same deposit, you’ll earn $3.60 over the same period.
Average savings rates week to week
| CNET Average Savings Last Week APY* | This week’s CNET average savings APY | Weekly change |
|---|---|---|
| 4.18% | 4.16% | -0.48% |
Things to Consider Besides APY When Opening a Savings Account
Since credit unions and online banks are more likely to offer high-yield savings accounts, this may change the way 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.
- Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Others require nothing.
- Access to ATMs: Not all banks offer cash deposits and withdrawals. If you need regular access to ATMs, check if your bank offers ATM fee reimbursements or a wide range of networked ATMs, said Lanesha Mohip, founder of Polished CFO and another member of the committee. CNET’s expert review.
- Costs: Pay attention to monthly maintenance fees, withdrawals and paper statements, Mohip said. Fees 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 online banking.
- Withdrawal limits: Some banks charge an excess withdrawal fee if you make more than six monthly withdrawals. If you need to earn 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, in the event of the bank’s failure.
- Customer Service: Choose a responsive bank that 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 an idea of working with the bank.
Methodology
CNET examined savings accounts from more than 50 traditional and online banks, credit unions and financial institutions serving nationwide. Each account was given a rating 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 rates the best savings accounts using a set of established criteria that compare annual percentage returns, 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 if it offers any of the following benefits:
- Account Bonuses
- Automated savings features
- Wealth management consulting/coaching services
- Cash deposits
- Expanded ATM networks and/or ATM discounts for off-network ATM use
A savings account may be rated lower if it doesn’t have an easy-to-navigate website or 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 23, 2025, based on banks we follow on CNET. Weekly percentage increase/decrease from January 13, 2025 to January 20, 2025.
**Varo offers 5% APY only on balances under $5,000.
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