There’s Still Time to Jump on APYs as High as 5%. Today’s Best Savings Rates for Jan. 22, 2025
- Top savings accounts offer annual interest rates as high as 5%.
- APY has been declining steadily since the Fed began cutting interest rates last year.
- Don’t wait to open a high-yield savings account. If interest rates drop further, your income will also drop.
want to grow your emergency fund or sinking fund Faster this year? this Best High-Yield Savings Accounts Earn up to 5% Annual Percentage Yield (APY). This is 10 times more national average.
APY has been slowly declining since the Fed began cutting interest rates this year. But with Inflation picks upmost experts don’t expect another rate cut until later this year. This means savings rates are also likely to remain stable, so there’s still time to maximize your income.
Read on to learn about CNET’s picks for the best high-yield savings accounts.
Today’s Best Savings Rates
| bank | annualized rate* | minute. Deposit opening |
|---|---|---|
| Precautions | 5.00%** | $0 |
| Newtech Bank | 4.70% | $0 |
| lending club | 4.50% | $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.
Why now is a good time to open a high-yield savings account
Experts predict the Federal Reserve will keep interest rates on hold at next week’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.
average weekly savings rate
| CNET average APY savings last week* | Average CNET APY savings this week | weekly changes |
|---|---|---|
| 4.18% | 4.16% | -0.48% |
High Yield Savings Account Features
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 21, 2025, based on banks we track at CNET. Weekly percentage increase/decrease between January 13, 2025 and January 21, 2025.
**Varo offers 5% APR only on balances under $5,000.
