Give Your Savings a Boost With APYs Over 4%. Today’s Savings Rates for Jan. 14, 2025

Now is the time to save money best high yield savings accountswhich boast an annual percentage yield (APY) of over 4%. Experts say these accounts are ideal for short-term savings goals because you can make regular contributions, earn interest on your balance, and access your money quickly.

Typically, when the Fed reduces the range of federal funds ratesbanks move interest rates in the same direction. So if the central bank makes further cuts this year, the savings rate will likely fall as well.

This does not mean that rates will drop to zero. Experts still support this version and its flexibility. But if you want to maximize the return on your savings, it’s best to open a HYSA account shortly before rates drop even further.

Here are the rates and factors to help you choose the best account for your short-term savings needs.

Experts recommend comparing rates before opening a savings account to get the highest APY possible. Enter your information below to get the best CNET affiliate rate for your region.

Should you open a high-yield savings account?

The rates are not as high as the 5% per annum we saw from some banks last year. Rates are hovering below 4.50% per annum, and experts predict the decline will continue.

“People may be hesitant to open a HYSA with the lower rates we’re seeing now,” he said. Daniel Floresmember of the CNET Money advisory board and founder of I Like to Babble. “It’s always worth making a little extra money with the money you’ve already saved.”

Savings rates are not constant and will continue to fluctuate, but the 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 one-time deposit of $500 into a HYSA with an annual interest rate of 4.2%. Assuming the rate stays the same over 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 period.

How to Choose the Best High Yield Savings Account

Here’s what 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. The rest don’t require anything.
• ATM access: Not every bank offers cash deposits and withdrawals. “If you need regular access to an ATM, check to see if your bank offers ATM fee reimbursement or a wide selection of in-network ATMs,” said Lanesha Mohip, founder of Polished CFO and another member of CNET’s expert advisory board.
• Fees: Pay attention to fees for monthly maintenance, withdrawals and paper statements, Mohip said. Fees can eat up your balance.
• Availability: If you prefer personal assistance, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider online banking.
• Withdrawal limits: Some banks charge additional withdrawal fees if you withdraw more than six times a month. If you may need to earn more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, as appropriate. This way, your money will be protected up to $250,000 per account holder per category in the event of a bank failure.
• Customer service: Choose a bank that responds quickly and makes it easy to get help with your account if you need it. Read online customer reviews and contact bank customer service to get an idea of ​​the bank experience.

Methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account was rated from one (lowest) to five (highest). All savings accounts listed here are FDIC or NCUA insured up to $250,000 per person, per account category, per institution.

CNET ranks the best savings accounts using a set of established criteria that compare annual percentage yields, monthly fees, minimum deposits or balances and access to physical branches. None of the banks on our list charge a monthly service fee. An account will be ranked higher for offering any of the following benefits:

• Bonuses on the account
• Automatic saving features
• Asset management consulting/coaching services
• Cash deposits
• Extensive ATM network and/or discounts when using off-network ATMs.

A savings account may score 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 receive a lower rating.

*APY as of January 14, 2025, based on bank data we track at CNET. Weekly percentage increase/decrease from January 6, 2025 to January 13, 2025.

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

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