Accelerate your savings goals with an APY over 4%. Today’s savings rates for January 16, 2025

The the best high yield savings accounts allow you to earn interest on the money you save while giving you the flexibility to withdraw it when you need it. Personal finance experts often recommend this account for short-term savings needs like your emergency fund.

However, banks and credit unions lower the annual percentage rate of return on this account. The highest rate is 5% APY, but only on a certain amount of your balance. Most of the best savings accounts still average 4.17% APY.

If rates continue to fall, you’ll earn less interest, but that doesn’t mean you should move your emergency fund elsewhere. Here’s more about where interest rates stand and what experts want you to know about navigating the interest rate environment and choosing the right high-yield savings account for you.

Experts recommend comparing rates before opening a savings account to get the best possible APY. Enter your information below to get the best price from CNET partners for your area.

Should you still use a high-yield savings account despite falling interest rates?

The rates aren’t as high as the 5% APY we saw from some banks last year. Interest rates are hovering below 4.50% APY and experts predict the decline will continue.

“People may be hesitant to open a HYSA with the lower rates we’re seeing right now,” said Daniel Floresmember of the CNET Money Expert Review Board and founder of I Like to Dabble. “It’s always worth earning a little extra on your already saved money.”

Savings rates are volatile and will continue to fluctuate, but interest earned increases over the long term, Flores pointed out. 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 lump sum deposit of $500 into a HYSA with 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 frame.

How to choose the best high yield savings account for you

Here are some things to look for 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.
• 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 reimbursement or a wide range of in-network ATMs, said Lanesha Mohip, founder of Polished CFO and another member of CNET’s Expert Review Board.
• Fees: Watch out for monthly maintenance fees, withdrawals and paper statements, Mohip said. Charges can eat up 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 additional 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 online customer reviews and contact the bank’s customer service department to get a feel for dealing with the bank.

Methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with services across the country. Each account received a score between one (lowest) and five (highest). The 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 established criteria that compares annual rates of return, 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 if it offers any of the following benefits:

• Account Bonuses
• Automatic saving features
• Advisory/wealth management services
• Cash deposits
• Expanded 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.

*APY as of January 15, 2025. based on the banks we track at CNET. Weekly percentage increase/decrease from January 6, 2025. until January 13, 2025

**Varo offers 5% APY only on balances under $5,000.

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