- APYs for the best high-yield savings accounts are as low as 5%.
- The central bank began cutting rates last fall, and banks have generally followed suit.
- Opening an account today can help you earn more interest before rates drop again.
Savings goals should be an important part of yours financial plan this year. Setting aside extra cash each month is a good way to grow your nest egg and keep it in one of the best high yield savings accounts it can help you earn more interest.
The best high-yield savings accounts earn up to 5% annual percentage return, or APY. While peak rates may not be as high as they were a year ago, they are still more than 10 times higher national average.
APYs have been slowly falling since the start of the Federal Reserve lowering interest rates last year. So now is a good time to take advantage of higher savings rates to grow yours emergency fund or start a sinking fund for a holiday or a big purchase.
Read on to see CNET's picks for the best high-yield savings accounts.
The best savings rates today
| Bank | APY* | min. opening deposit |
|---|---|---|
| Preventatively | 5.00% ** | $0 |
| Newtech Bank | 4.70% | $0 |
| LendingClub | 4.50% | $0 |
| Basque Bank | 4.50% | $0 |
| EverBank | 4.40% | $0 |
| Synchrony 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 possible APY. Enter your information below to get the best CNET partner rate for your area.
As 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 are likely to follow suit. If so, you'll have more time to earn interest on your savings at over 4% APY. But even if rates fall, it's still worth having a high-yielding savings account.
“People may question whether it's worth opening a HYSA at the lower rates we're seeing right now,” he said. Daniela Floresboard member for CNET's Money Expert Review and founder of I Like to Dabble. “It's always worth earning a little more than your already saved money.”
Savings rates are variable and will continue to fluctuate, but interest earned adds up over the long term, Flores noted. 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 in 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 the money in a traditional savings account that offers 0.42% on the same deposit, you'll earn $3.60 in the same time frame.
Average savings rates from week to week
| Last week's CNET average savings APY* | CNET's average savings this week APY | Weekly change |
|---|---|---|
| 4.18% | 4.16% | -0.48% |
Things to consider besides APY when opening a savings account
Since credit unions and online-only banks often offer high-yield savings accounts, it can change the way 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 HYSAs require a minimum amount to open an account, usually between $25 and $100. Others ask for nothing.
- ATM access: Not every bank offers cash deposits and withdrawals. If you need regular access to ATMs, check to see if your bank offers ATM fee waivers 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. Fees can eat into 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 excess withdrawal fee if you withdraw more than six per month. If you might 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, 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 customer reviews online 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 service 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 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 for offering any of the following benefits:
- Account bonuses
- Automatic saving functions
- Wealth management consultancy/coaching services
- Cash deposits
- Broad ATM and/or ATM discounts for out-of-network usage
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 23, 2025, based on banks we track at CNET. Weekly percentage increase/decrease from January 13, 2025 to January 20, 2025.
**Varo offers 5% APY only on balances less than $5,000.