Meet Your Savings Goals with Over 4% APY. Today’s savings rates for January 13, 2025

Currently, best high yield savings accounts annual interest income is above 4%. You can find the best rates at online banks and credit unions compared to big brick-and-mortar banks, but those high savings rates may not last.

Experts say a high-yield savings account is the best place to keep your money for short-term deposits. emergency fund. Which bank currently offers the best exchange rate?

Here’s the best savings rates we found and what experts recommend you consider before opening an account.

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.

Where can I find the highest savings rate?

Currently, Varo Bank Offers 5% APY. You’ll only earn this rate up to $5,000 in your balance. After that, it offers 2.50% APY, which is less than what other options offer.

If you’re looking for a place that offers a high interest rate on your entire balance, Newtek Bank currently has a 4.70% APY with no minimum balance or monthly fee. Both Varo and Newtek are online only, so you should be comfortable handling your money virtually.

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

The rates aren’t as high as the 5% APY we saw at some banks last year. Rates are below 4.50% APY, and experts predict the decline will continue.

“People may be hesitant if it’s worth opening a HYSA at the low rates we’re seeing right now,” he said. Danielle FloresCNET Money Expert Review Board member and founder of I Like to Dabble. “It’s always worth earning a little extra on top of the money you’ve already saved.”

Savings rates are volatile and will continue to fluctuate, but the interest earned adds up over the long term, Flores noted. Plus, the rates for a HYSA will still be higher than most traditional savings accounts, so you’ll earn more interest on your money.

For example, let’s say you make a lump sum deposit of $500 into HYSA with a 4.2% APY. Assuming the interest rate stays the same for the next 12 months, you’ll earn $21.60 in interest. If you keep your money in a traditional savings account that offers 0.42% for the same deposit, you’ll earn $3.60 over the same period.

Features to consider when choosing a high yield savings account

Here are some things you should consider while 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, said Lanesha Mohip, founder of Polished CFO and another member of the CNET Expert Review 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 Federal Deposit Insurance Corporation or the National Credit Union Administration, respectively. 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 10, 2025 based on banks we track at CNET. Weekly rate increase/decrease from December 30, 2024 to January 6, 2025.

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

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