It’s Not the End of 4% APYs — Yet. Today’s Best Savings Rates for Jan. 27, 2025
- You can still earn over 4% APY with today’s rates.
- APY is also likely to remain stable if the Fed leaves rates alone this week.
- Even if interest rates fall, high-yield savings accounts are still valuable.
Consider switching from a traditional savings account to one of these The best high-yield savings accounts? Now is the time. Many credit unions and online-only banks still offer annual percentages above 4%, up to 5%. That’s more than 10 times The national average is 0.41%.
A year ago, the optimal savings rate was over 5%. However, as inflation showed signs of cooling at the end of the year, the Fed tripled the rate. Banks have mostly followed suit, cutting APYs on high-yield savings accounts.
Even if the Fed remains steady at its expected meeting this week, we don’t recommend waiting. Banks could still decide to lower savings rates further. To make the most of the money you’ve already saved, here are the banks currently offering the best rates and banks to consider before opening an account.
Today’s Best Savings Rates
| bank | APY* | Minimum. Deposits open |
|---|---|---|
| preventive | 5.00%** | $0 |
| newtek bank | 4.70% | $0 |
| Lendclub | 4.50% | $0 |
| Bask Bank | 4.50% | $0 |
| Everbank | 4.40% | $0 |
| sync bank | 4.10% | $0 |
| Laurel Road | 4.00% | $0 |
| American Express | 3.80% | $0 |
| capital one | 3.80% | $0 |
Experts recommend comparing rates before opening a savings account to get the best APY. Enter your information below to get the best rates from CNET partners.
How does the Fed affect the savings rate?
When a central bank raises or lowers its federal funds rate range, banks tend to do so by shifting their lending and saving rates in the same direction. For example, when the Federal Reserve cut interest rates to spur spending during the pandemic, savings rates also fell.
and Inflation goes backwards Recently, most experts predicted that the central bank would not lower interest rates again at this week’s Federal Open Market Committee meeting. If interest rates remain stable, you may have more time to earn interest at current rates.
No matter what the Fed does this year, a high-yield savings account should still be part of your money strategy, experts say. In addition to earning interest, the account offers the flexibility to deposit and withdraw funds when needed.
“People may be hesitant if it’s worth opening HYSA at the lower prices we’re currently seeing,” Danielle Floresa member of CNET’s Money Experts Review Board and the founder of something I love to get involved with. “It’s always worth it to make a little extra money on top of the money you’re already saving.”
💰You can earn up to 4.65% APY on the best CDs. Check today’s price.
average weekly savings rate
| CNET Average Savings APY* Last Week | Average CNET APY savings this week | changes weekly |
|---|---|---|
| 4.16% | 4.15% | -0.24% |
Features to consider in a high-yield savings account
Since credit unions and online-only banks are most likely to offer high-yield savings accounts, this may change the way you save. For example, some online-only banks do not accept cash deposits and may not have a physical location for assistance. Here are some other factors to consider when opening a HYSA.
- Account requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Others don’t have any minimum. You should be aware of balance requirements to ensure your account remains in good standing and continues to earn interest.
- ATM access: Not every bank offers cash deposits and withdrawals. Lanesha Mohip, founder of Polished CFO, says if you need regular ATM access, check to see if your bank offers ATM fee reimbursement or an extensive network of in-house ATMs.
- cost: Be aware of monthly maintenance, pickup and paper statement fees, Mohip says. These fees can give you balance.
- Accessibility: If you prefer face-to-face assistance, look for a bank with physical branches. If you’d rather manage your money digitally, consider online banking.
- Withdrawal limits: Some banks charge an excess withdrawal fee if you withdraw more than six per month. If you may need to do more, consider a bank that doesn’t have this restriction.
- Safety and security: Make sure your bank has Federal Deposit Insurance Corporation – or the National Credit Union Trade Union Administration. This way, if the bank fails, your funds are protected up to $250,000 per category per account holder.
- Customer Service: Choose a bank that is responsive and makes it easy to get help when you need it. Read online customer reviews and contact the bank’s customer service to get you started with the bank.
methodology
CNET has reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions, with services available nationwide. Each account has a score between one (lowest) and five (highest). The savings accounts listed here are all FDIC or NCUA insured up to $250,000 per account, per institution.
CNET evaluates the best savings accounts using an established set of criteria that compares annual yield, monthly fees, minimum deposits or balances and access to physical branches. The banks on our list charge no monthly maintenance fees. Accounts that offer any of the following perks will be ranked higher:
- Account bonus
- Automatic saving function
- Wealth Management Consulting/Coaching Services
- cash deposit
- Extensive ATM network and/or ATM rebates for out-of-network ATM use
If a savings account doesn’t have an easy-to-play website or doesn’t offer useful features like ATM cards, it can be rated lower. Fees for imposing restrictive residency requirements or exceeding monthly transaction limits may also be lower.
*As of January 27, 2025, based on banks we track at CNET. Weekly increase/decrease percentage increase/decrease from January 20, 2025 to January 27, 2025.
**varo only offers 5% APY on balances less than $5,000.
