Supercharge Your Savings Goals With APYs Over 4%. Today’s Savings Rates for Jan. 13, 2025 | Global News Avenue

at present, Best High Yield Savings Accounts The annual rate of return exceeds 4%. You may find the best rates at online banks and credit unions compared to major brick-and-mortar banks, but these high savings rates may not last.

Experts say high-yield savings accounts are the best option for short-term or short-term savings. emergency fund. Which bank currently offers the best interest rates?

Here are the best savings rates we’ve found and what experts recommend considering before opening an account.

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.

Where can you find the highest savings rates?

Now, Varro Bank Offers 5% APY. You can only earn this rate on up to $5,000 of your balance. After that, it offers an annual interest rate of 2.50%, which is lower than what other options offer.

If you’re looking for a place that offers a great interest rate on your entire balance, Newtek Bank is currently offering 4.70% APR with no minimum balance or monthly fees. Both Varo and Newtek are only available online, so you need to be comfortable managing your money virtually.

Is it still worth opening a high-yield savings account?

The interest rate is not as high as the 5% APR we saw from some banks last year. Annual interest rates are hovering below 4.50%, and experts predict the downward trend will continue.

“People may be hesitant whether it’s worth opening a HYSA at the lower rates we’re currently seeing,” said Danielle FloresHe is a member of CNET Money’s expert review board and the founder of I Like to Dabble. “It’s always worth making a little extra with the money you’ve already saved.”

Flores noted that savings rates are variable and will continue to fluctuate, but the interest earned will increase over the long term. Plus, HYSA’s interest rate is still higher than most traditional savings accounts, so you’ll earn more interest.

For example, let’s say you deposit a lump sum of $500 into a HYSA, which earns an annual interest rate of 4.2%. Assuming the interest rate remains constant for the next 12 months, you will earn $21.60 in interest. If you deposited your funds into a traditional savings account and the interest rate on the same deposit was 0.42%, you would earn $3.60 over the same time period.

Features to consider when choosing a high-yield savings account

Here are some 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 another CNET Expert Review Board member.
• 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 by the Federal Deposit Insurance Corporation or the National Credit Union Administration, respectively. 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 January 13, 2025, based on banks we track at CNET. Weekly percentage increase/decrease between January 6, 2025 and January 13, 2025.

**Varo offers 5% APR only on balances under $5,000.

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