Add more to your savings with an APY over 4%. Today’s savings rates for January 15, 2025

This week you can find the best high yield savings accounts earning 4% APY, with some boasting annual percentage returns, or APY, close to 5%. But not much.

Over the past few months, we have seen banks quietly lower the interest rates on these accounts as The Federal Reserve lowered the federal funds rate. Since banks tend to move in the same direction as the Federal Reserve, experts are not surprised that rates are falling.

BMO Alto cut its savings APY from 4.30% to 4.10% this week. Other banks also cut rates this month, but experts still recommend keeping money in high-yield savings accounts because of their flexibility.

If you want to maximize your savings gains, it’s best to open a HYSA account soon before interest rates drop further.

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 hide your money in a high-yield savings account?

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 from 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 a 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, 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 help, 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 nationwide. 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 14, 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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