- The best savings accounts earn up to 5% APY.
- Annual interest rates have fallen steadily since the Federal Reserve began cutting interest rates last year.
- Don’t wait to open a high-yield savings account. If prices fall further, your profits will also fall.
Do you want to grow your emergency fund or sinking fund faster this year? The best high-yield savings accounts earn up to 5% annual yield, or APY. This is more than 10 times greater National average.
Annual interest rates have been falling slowly since the Federal Reserve began cutting interest rates this year. But with inflation rising again, most experts don’t expect another cut until later in the year. This means that savings rates may also remain constant, so there is still time to maximize your earnings.
Read on to see CNET’s picks for the best high-yield savings accounts.
Today’s best savings rates
| Bank | my dad* | minute. Deposit to open |
|---|---|---|
| Farrow | 5.00%** | $0 |
| Newtec Bank | 4.70% | $0 |
| LendingClub | 4.50% | $0 |
| Basque Bank | 4.50% | $0 |
| Everbank | 4.40% | $0 |
| Laurel Road | 4.15% | $0 |
| Synchronization 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 the best CNET Partners rate for your area.
Why is now the right time to open a high-yield savings account?
Experts expect that the Fed will keep interest rates steady at next week’s Federal Open Market Committee meeting, and banks are likely to follow suit. If so, you will have more time to earn interest on your savings in excess of 4% annual return. But even if interest rates fall, a high-yield savings account is still worth having.
“People may be hesitant if it’s worth it to open a HYSA at the low rates we’re currently seeing,” he said. Daniel Floresboard member of CNET Money Expert Review and founder of I Like to Dabble. “It’s always helpful to earn a little money that’s already been saved.”
Flores noted that savings rates are variable and will continue to fluctuate, but the interest earned is increasing over the long term. Plus, HYSA rates 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 an annual rate of return of 4.2%. Assuming the rate stays the same for the next 12 months, you will earn $21.60 in interest. If you kept your money in a traditional savings account that offers 0.42% for the same deposit, you would earn $3.60 over the same time frame.
Average savings rates from week to week
| CNET Average Savings Last Week APY* | CNET Average Savings for the Week APY | Weekly change |
|---|---|---|
| 4.18% | 4.16% | -0.48% |
Features to look for in a high-yield savings account
Since credit unions and online-only banks are more likely to offer high-yield savings accounts, this could change how you manage your savings. For example, some online-only banks do not 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 HYSA accounts require a minimum to open an account, usually between $25 and $100. Others don’t require anything.
- Access to ATM machines: Not every bank offers cash deposits and withdrawals. If you need regular access to an ATM, check to see if your bank offers reimbursement for ATM fees or a wide selection of ATMs within the network, said Lanisha Mohib, founder of Polished CFO and another member of CNET’s expert review board. .
- expenses: Look for monthly maintenance fees, towing, and paper statements, Mohib 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 banking online.
- Withdrawal limits: Some banks charge excess withdrawal fees if you make more than six withdrawals a month. 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, in the event of a bank failure.
- 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 learn about working with the bank.
methodology
CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions offering services nationwide. Each account received a score between one (lowest) and five (highest). All savings accounts listed here are 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 specific 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 receive a higher ranking for offering any of the following perks:
- Account Rewards
- Automated savings features
- Consulting/training services in the field of wealth management
- Cash deposits
- Extensive ATM networks and/or ATM discounts for using out-of-network ATMs
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.
*APYs as of January 21, 2025, based on banks we track at CNET. Weekly percentage increase/decrease from January 13, 2025 to January 21, 2025.
**Varo only offers 5% APY on balances under $5,000.