There’s Still Time to Earn Savings on APYs Over 4%. Today’s Savings Rates for Jan. 8, 2025
- You can put your goal for this year into a high-yield savings account to keep your money safe while earning interest.
- The best high-yield savings accounts still offer annual interest rates above 4%, which is higher than most traditional savings accounts that offer 0.01%.
- Even if interest rates fall, experts recommend this account because it provides easy access to funds.
last year, Best High-Yield Savings Accounts The annual percentage rate (APY) is well above 5%, but rates start to drop throughout the year. Right now, APY is hovering around 4%, but experts still recommend keeping your money in this account.
If you set new financial goals this year – such as establishing your emergency fund or a sinking fund During the summer holidays – you can top up regularly and withdraw when needed. since savings rate Still beneficial, you can reach your goals faster by earning interest on the money you save.
APY has fallen from its highs Fed cuts interest ratesbut your income is still 10 times the annual rate of return traditional savings account supply. Here’s a look at which banks offer the best rates and what to weigh when choosing the account that’s right for you.
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.
How much has the savings rate changed over the past week?
| Average CNET APY savings last week* | Average CNET APY savings this week | weekly changes |
|---|---|---|
| 4.21% | 4.20% | -0.24% |
How often should you compare savings rates?
Experts recommend comparing rates, offers, and fees once a year. If you have a traditional savings account with an APR of 0.01%, it might be worth switching to a high-yield savings account to help your money grow faster.
But it might not be worth it to move money every time you see an interest rate that’s slightly higher than your current account.
“If your HYSA is 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 your HYSA with another bank, then it’s not worth it to switch, ” explain 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.
Factors to consider before opening a 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 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’s 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 yields, 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 January 7, 2025, based on banks we track at CNET. Weekly percentage increase/decrease between December 30, 2024 and January 6, 2025.
**Varo offers 5% APR only on balances under $5,000.
