- Savings rates on several accounts still have annual percentage returns between 3.7% and 5%.
- Since the Federal Reserve has lowered interest rates, your savings APY may see a slight drop.
- A high yield savings account allows you to withdraw and deposit money when you need it.
With only one week left in the year, the best high yield savings account however it can help you earn an annual percentage return close to 5% on your savings. Rates are likely to come down in the coming year, especially if the Federal Reserve does further reductions in interest rates.
“HYSAs still have pretty good rates, even after rates started to fall,” he said Daniela FloresCNET Money expert and founder of I Like to Dabble. “I signed up for HYSA last month with a rate of 4.1% which dropped to 3.9% last week but I'm still earning a decent amount of money on my balance.
A HYSA allows you to earn interest on money earmarked for your short-term goals or needs, such as car repairs or emergency fund. Although rates may be lower, this type of account can still provide better returns than a traditional savings account.
The best savings rates today
| Bank | APY* | min. opening deposit |
|---|---|---|
| Preventatively | 5.00% ** | $0 |
| Newtech Bank | 4.70% | $0 |
| LendingClub | 4.75% | $0 |
| Basque Bank | 4.50% | $0 |
| EverBank | 4.40% | $0 |
| Laurel Road | 4.15% | $0 |
| Synchrony 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 possible APY. Enter your information below to get the best CNET partner rate for your area.
Compare the latest savings rates
| Last week's CNET average savings APY* | CNET's average savings this week APY | Weekly change |
|---|---|---|
| 4.33% | 4.23% | 2.31% |
Why a high-yield savings account is good for short-term goals
Despite the drop in rates from last year's record highs, Flores recommends setting up a HYSA with money you already have on hand.
Unlike a high-yield savings account, a traditional savings account usually offers only pennies on your savings.
For example, if you make a one-time deposit of $500 into a traditional savings account with 0.01% APY, you'll earn two cents over six months. If you deposit the same amount into a HYSA with 4% APY (assuming rates don't change for the next six months), you'll earn about $10 in interest over the same amount of time. The $10 you earn for keeping money in a HYSA may not seem like much, but every dollar counts toward your savings goal.
How to choose a high yield savings account
It doesn't hurt to shop around for better rates to earn more interest while rates are high. Experts recommend comparing rates, offers and fees once a year.
Here are some things to look for in 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 reimbursements or a wide variety of in-network ATMs, said Lanesha Mohip, founder of Polished CFO and a member of CNET's expert review board.
- Fees: Watch out for monthly maintenance fees, withdrawals and paper statements, Mohip said. Fees can put a dent in 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: Check to see if your bank or credit union is insured with the FDIC or NCUA. 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 consulting/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 December 24, 2024, based on the banks we track at CNET. Weekly percentage increase/decrease from December 16, 2024 to December 23, 2024.
**Varo offers 5% APY only on balances less than $5,000