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- High-yield savings accounts often have rates of more than 4% APY to help you earn interest on the money you’re putting aside.
- Savings accounts offer the flexibility to schedule regular deposits to automate your savings.
- Savings rates are expected to drop so act now to maximize the return on your money.
Setting a goal to save more isn’t always easy, especially if you develop a new habit of putting money aside. If you save money for the short term, experts recommend using a high yield savings account.
These accounts eliminate the guesswork of saving with regularity automatic transfers. You can also earn interest, and with rates up to 5%, these accounts are perfect for rebuilding your savings after some holiday spending or to create a sinking fund for the summer holidays.
Although annual percentage returns have fallen from their highs after the The Federal Reserve has cut interest ratesYou will also earn 10x the APY that traditional savings accounts offer Here’s which banks offer the best rates, plus factors to consider when choosing the best account for you.
The best savings rates
| Bank | APY* | Min. deposit to open |
|---|---|---|
| Caution | 5.00%** | $0 |
| Newtek Bank | 4.70% | $0 |
| LendingClub | 4.75% | $0 |
| Basque Bank | 4.50% | $0 |
| EverBank | 4.40% | $0 |
| Laurel Road | 4.15% | $0 |
| Sync 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 rates for your area.
How much the top average savings rates have changed week to week
| Last week’s average CNET savings APY* | This week’s average CNET savings APY | Weekly change |
|---|---|---|
| 4.24% | 4.21% | -0.01% |
Now is the time to buy a new savings rate?
Experts recommend comparing rates, offers and fees once a year. If you have a traditional savings account with a 0.01% APY, it’s probably worth switching to a high-yield savings account to help your money grow faster.
It may not be worth moving your money every time you see a slightly higher rate than your current account.
“If you have a HYSA with a bank or credit union that has worked well for you and you don’t have much of a reason to switch other than maybe an extra .1% increase in a HYSA with another bank, it’s not worth it sorry. change,” he said Danielle Floresa CNET Money expert and founder of I Like to Dabble.
For example, let’s say you make a one-time deposit of $500 in a HYSA with a 4.2% APY. If the rate stays the same for the next three months, you’ll earn $5.17 in interest. If you find a bank with an APY of 4.4% and make the same deposit, you’ll earn $5.41 — a difference of 24 cents.
Other factors to consider when choosing 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, typically between $25 and $100. Others do not require anything at all.
- Access to the ATM: Not every bank offers cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM fee rebates or a wide range of in-network ATMs, said Lanesha Mohip, founder of Polished CFO and member of the CNET expert advice.
- Fees: Look at the fees for monthly maintenance, withdrawals and card statements, Mohip said. Charges can eat into your balance.
- Accessibility: If you prefer in-person assistance, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider online banking.
- Withdrawal Limits: Some banks charge an excessive withdrawal fee if you make more than six monthly withdrawals. If you need to do more, consider a bank without this limit.
- Federal Deposit Insurance: Make sure your bank or credit union is insured with the FDIC or NCUA. In 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 examined savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with national services. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all 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 upgraded to offer any of the following benefits:
- Account bonus
- Automated savings features
- Wealth management consultancy/coaching services
- Cash deposits
- Extensive ATM networks and/or ATM rebates for out-of-network ATM use
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 qualify lower.
*APY as of January 6, 2024, based on banks we track at CNET. Weekly percentage increase/decrease from December 30, 2024 to January 6, 2024.
**Varo offers 5% APY only on balances less than $5,000
