Reach Your Savings Goal Faster With APYs Over 4%. Today’s Savings Rates for Jan. 21, 2025 | Global News Avenue

If you have set financial goals this year, such as establishing emergency fund or Save money movingthe best High Yield Savings Account can help. like a traditional savings accountyou can make regular deposits and withdrawals when you need to, but your balance earns more interest.

The best high-yield savings accounts currently offer annual yields of over 4%, which is nearly 10 times higher than regular accounts. national average The annual interest rate is 0.42%.

Savings account rates are currently holding steady week-to-week, having dropped slightly this month. So you still have time to earn interest on the financial goals you set this year, but don’t wait to maximize those beneficial annual gains on your savings. Here’s a closer look at the interest rate landscape and which banks offer them.

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.

Savings rates are likely to remain stable

Experts predict the Federal Reserve will keep interest rates on hold at this month’s Federal Open Market Committee meeting, and banks are likely to follow suit. If so, you’ll have more time to earn interest on your savings at over 4% per year. But even if interest rates drop, high-yield savings accounts are still worth having.

“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 it to make 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 your money will 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.

What to consider when opening a high-yield savings account

Since credit unions and online banks are most likely to offer high-yield savings accounts, this could change the way you manage your savings. For example, some online-only banks don’t accept cash deposits and may not have a physical location to offer 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, 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 17, 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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