Give Your Savings a Boost With APYs Close to 5%. Today’s Savings Rates, Jan. 7, 2025
- High-yield savings accounts still offer over 4% APR, helping you earn interest on the funds you deposit.
- Savings accounts offer the flexibility to schedule regular deposits for automatic savings.
- Savings rates are expected to drop, so take action now to maximize your return on your money.
Reaching the goal of saving more isn’t always easy, especially if you’re developing a new habit of saving money. If you’re saving money for the short term, experts recommend using high yield savings account.
These accounts take the guesswork out of saving regularly automatic transfer. You can also earn interest, with interest rates of up to 5%, these accounts are perfect for rebuilding your savings after holiday spending or creating a sinking fund Summer vacation.
Although annual yields have fallen from their highs Fed cuts interest ratesyou’ll still earn 10x APY traditional savings account supply. Here’s a look at which banks offer the best rates and what factors to weigh when choosing the best account for you.
best savings rate
| 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.
How much does the top average savings rate change from week to week?
| Average CNET APY savings last week* | Average CNET APY savings this week | weekly changes |
|---|---|---|
| 4.24% | 4.21% | -0.01% |
Is now the time to shop for 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% APR, it might be worth switching to a high-yield savings account to help you grow your money faster.
Whenever you see an exchange rate that’s slightly higher than your current account, it’s probably not worth the effort to move funds.
“If you have a HYSA with a bank or credit union that’s working well for you and there’s not much reason to switch other than maybe an extra 0.1% on a HYSA with another bank, then just Not worth the switch,” said Danielle Floresa CNET finance expert and founder of I Like to Dabble.
For example, let’s say you deposit a lump sum of $500 into a HYSA, which earns an annual interest rate of 4.2%. If the interest rate stays the same for the next three months, you will earn $5.17 in interest. If you found a bank with an APR of 4.4% and made the same deposit, you would earn $5.41, a difference of 24 cents.
Other factors to consider when choosing a high-yield savings account
Things to note when opening a 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 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’s likely to be rated lower. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*APY as of January 6, 2024, based on banks we track at CNET. Weekly percentage increase/decrease between December 30, 2024 and January 6, 2024.
**Varo only offers 5% APY on balances under $5,000
