APYs are Dropping, but These Accounts Are Still a Smart Place to Stash Your Cash. Today’s Savings Rates, Dec. 27, 2024
- Some high-yield savings accounts still offer annual interest rates between 3.8% and 5%.
- Since the Fed has lowered interest rates, your annual interest rate on savings may go down, but if you put it in a HYSA, it will still be higher than a traditional savings account.
- HYSA allows you to withdraw and deposit funds when needed, making it the perfect place to store emergency funds.
The new year is approaching, but Best High-Yield Savings Accounts The annual yield (APY) is still above 4%, which is much higher than the yield on traditional savings accounts. Although interest rates may fall in 2025, especially if the Fed implements additional rate cutthat doesn’t mean you should stop using it.
“Even though rates are starting to come down, HYSA’s rates are still pretty good,” said Danielle Floresa CNET finance expert and founder of I Like to Dabble. “I signed up for HYSA last month and the interest rate was 4.1%, which dropped to 3.9% last week and I’m still making decent money on my balance.”
HYSA allows you to earn interest on funds earmarked for short-term goals or needs, such as car repairs or emergency fund. Although interest rates may be falling, this type of account can still provide better returns than traditional savings accounts.
Today’s Best Savings Rates
| bank | annualized rate* | minute. Deposit opening |
|---|---|---|
| Precautions | 5.00%** | $0 |
| Newtech Bank | 4.70% | $0 |
| lending club | 4.75% | $0 |
| basque bank | 4.50% | $0 |
| Wing Fung Bank | 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 interest rates before opening a savings account to get the best possible APR. Enter your information below to get the best prices in your area from CNET partners.
Compare the latest savings rates
| Average CNET APY savings last week* | Average APY savings on CNET this week | weekly changes |
|---|---|---|
| 4.33% | 4.23% | 2.30% |
Use a high-yield savings account to achieve your short-term goals
Even though interest rates are down from last year’s all-time highs, Flores recommends setting up a HYSA with money you’ve already saved.
Unlike high-yield savings accounts, traditional savings accounts typically offer savings of just a few cents.
For example, if you deposit a lump sum of $500 into a traditional savings account that earns 0.01% APR, you’ll earn 2 cents in six months. If you deposit the same amount into a HYSA at 4% annual interest (assuming the interest rate remains unchanged for the next six months), you will earn approximately $10 in interest over the same period of time. The $10 you earn by depositing money into a HYSA may not seem like much, but every dollar helps achieve your savings goals.
How to Choose a High-Yield Savings Account
With interest rates high, it doesn’t hurt to shop around for better rates to earn more interest. Experts recommend comparing rates, offers, and fees once a year.
Here are some things to note in HYSA:
- Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Others don’t need anything.
- ATM deposits and withdrawals: Not every bank offers cash deposits and withdrawals. If you need to use an ATM regularly, check to see if your bank offers ATM fee reimbursement or a variety of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and a member of CNET’s Expert Review Board.
- cost: Be aware of the fees for monthly maintenance, withdrawals and paper statements, Mohip said. These fees drain your balance.
- Auxiliary functions: If you prefer in-person help, look for a bank with a physical branch. If you’d rather manage your money digitally, consider online banking.
- Withdrawal limits: Some banks charge an excess withdrawal fee if you make monthly withdrawals for more than six months. If you may need to make more money, consider a bank that doesn’t have this restriction.
- Federal Deposit Insurance: Make sure your bank or credit union is insured through the FDIC or NCUA. This way, if a bank fails, up to $250,000 of your funds are protected per account holder and per category.
- Customer Service: Choose a bank that is responsive and makes it easy to get help with your account when you need it. Read online customer reviews and contact the bank’s customer service to get an idea of what it’s like to work with the bank.
methodology
CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions offering services nationwide. Each account has a score between 1 (lowest) and 5 (highest). The savings accounts listed here are insured by the FDIC or NCUA up to $250,000 per person, per account category, and per institution.
CNET evaluates the best savings accounts using a set of established criteria that compare annual yield, monthly fees, minimum deposits or balances and access to physical branches. None of the banks on our list charge monthly maintenance fees. Accounts that offer any of the following benefits will be ranked higher:
- Account bonus
- Automatic saving function
- Wealth Management Consulting/Counseling Services
- cash deposit
- ATM rebates used by extensive ATM network and/or out-of-network ATMs
If a savings account doesn’t have an easy-to-navigate website or doesn’t offer useful features like an ATM card, it may be rated lower. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*APY as of December 27, 2024, based on banks we track at CNET. Weekly percentage increase/decrease between December 16, 2024 and December 23, 2024.
**Varo only offers 5% APY on balances under $5,000
