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- First savings accounts earn up to 5% APY.
- APYs have been falling steadily since the Fed started cutting interest rates last year.
- Don’t wait to open a high-yield savings account. If rates fall further, so will your earnings.
You want to grow yours emergency fund o sinking fund faster this year? U the best high yield savings accounts earn up to 5% annual percentage yield, or APY. It is more than 10 times national media.
APYs have been slowly falling since the Federal Reserve began cutting interest rates this year. But with inflation returns quicklyMost experts do not expect another cut until the end of the year. This means that the savings rates can be still, so there is still time to maximize your earnings.
Read on to see CNET’s picks for the best high-yield savings accounts.
Today’s best savings rates
| Bank | APY* | Min. deposit to open |
|---|---|---|
| Caution | 5.00%** | $0 |
| Newtek Bank | 4.70% | $0 |
| LendingClub | 4.50% | $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.
Because now is a good time to open a high-yield savings account
Experts predict the Fed will keep rates steady at next week’s Federal Open Market Committee meeting, and banks will likely follow suit. If so, you have more time to earn interest on your savings with more than 4% APY. But even if rates drop, a high-yield savings account is still worth it.
“People may hesitate whether it’s worth opening a HYSA with the lower rates we’re currently seeing,” he said. Danielle Floresa CNET Money Expert Review Board member and founder of I Like to Dabble. “It’s always worth earning a little extra on top of your already saved money.”
Savings rates are variable and continue to fluctuate, but the interest earned adds up over the long term, Flores said. Plus, the rates for HYSAs will always 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 in a HYSA with a 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% for the same deposit, you will earn $3.60 in the same time.
Average savings rates from week to week
| Last week’s average CNET savings APY* | This week’s average CNET savings APY | Weekly change |
|---|---|---|
| 4.18% | 4.16% | -0.48% |
Features to look for in a high yield savings account
Since credit unions and online banks are more likely to offer high-yield savings accounts, that may change the way you manage your savings. For example, some online-only banks do not accept cash deposits and do 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, 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 CFO Polished and another member of the CNET Expert Review Board.
- 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 Federal Deposit Insurance Corporation or the National Credit Union Administration, respectively. 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 reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide 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 21, 2025, based on banks we track at CNET. Weekly percentage increase/decrease from January 13, 2025 to January 21, 2025.
**Varo offers 5% APY only on balances less than $5,000.
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