Grow your savings with close to 5% APY. Savings rates today, January 7, 2025

Achieving the goal of saving more isn’t always easy, especially if you’re developing a new habit of putting money away. If you’re saving money in the short term, experts recommend using a high yield savings account.

These accounts eliminate the possibility of saving regularly automatic transfers. You’ll also earn interest, and with rates as high as 5%, these accounts are perfect for rebuilding your savings or building credit after some holiday spending. sinking fund for summer vacation.

Although annual interest income has since fallen from its peak The Federal Reserve has cut interest ratesyou’ll still earn 10x the APYs traditional savings accounts offer. Here’s which banks offer the best rates, as well as what factors to consider when choosing the best account for you.

Experts recommend comparing rates before opening a savings account to get the best possible APY. Enter your information below to get the best rate for your area from CNET partners.

Is now the time to shop for a new savings rate?

Experts recommend comparing rates, offers and fees once a year. If you have a traditional savings account with a 0.01% APY, it’s worth switching to a high-yield savings account to grow your money faster.

It’s not worth the effort to transfer your money every time you see a slightly higher interest rate on your checking account.

“If you have a HYSA with a bank or credit union that’s working well for you, and you don’t have much reason to switch other than an extra .1% increase in your HYSA with another bank, it’s not worth it. transition,” he said Danielle FloresCNET Money expert and founder of I Like to Dabble.

For example, let’s say you make a lump sum deposit of $500 into HYSA with a 4.2% APY. If the rate stays the same for the next three months, you’ll earn $5.17 in interest. If you find a bank with a 4.4% APY and make the same deposit, you’ll earn $5.41 — a difference of 24 cents.

Other factors to consider when choosing a high-yield savings account

Here are some things to keep in mind when opening a HYSA:

• Minimum deposit requirements: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Others require nothing.
• ATM access: Not every bank offers cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM fee waivers or a wide variety of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and a member of the CNET expert opinion board.
• Fees: Watch out for fees for monthly maintenance, withdrawals and paper statements, Mohip said. Charges may appear on your balance.
• Availability: If you prefer in-person assistance, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider online banking.
• Withdrawal limits: Some banks charge an overdraft fee if you withdraw more than six months. If you may need to make more money, consider a bank that does not have this limit.
• Federal deposit insurance: Make sure your bank or credit union is insured with the FDIC or NCUA. That way, if the bank fails, your money is protected up to $250,000 per account holder 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 about working with the bank.

Methodology

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each score received a score between one (lowest) and five (highest). All savings accounts listed here are insured by the FDIC or NCUA up to $250,000 per person, account category, institution.

CNET ranks the best savings accounts using a set of criteria that compares annual interest income, monthly payments, minimum deposits or balances, and access to physical branches. None of the banks on our list charge a monthly maintenance fee. An account will rank higher for offering any of the following benefits:

• Account bonuses
• Automated saving features
• Wealth management consulting/coaching services
• Cash deposits
• ATM discounts for using extensive ATM networks and/or out-of-network ATMs

If it doesn’t have an easy-to-navigate website or doesn’t offer useful features like an ATM card, a savings account may be rated lower. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be downgraded.

*APYs as of January 6, 2024 based on banks we track at CNET. Weekly rate increase/decrease from December 30, 2024 to January 6, 2024.

**Varo only offers 5% APY on balances less than $5,000

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