- Savings rates in many accounts still generate annual returns of between 3.7% and 5%.
- Since the Fed lowered interest rates, your savings APY may see a slight decrease.
- A high-yield savings account allows you to withdraw and deposit money when you need it.
With only one week left until the end of the year The best high-yield savings account It can still help you get an annual return of around 5% on your savings. Interest rates are likely to fall next year, especially if the Fed does so Additional interest rate cuts.
“HYSAs continue to have very good rates, even after rates have started to decline,” he said. Daniel FloresCNET Money expert and founder of I Like to Dabble. “I signed up for a HYSA last month with a 4.1% interest rate that dropped to 3.9% last week, but I’m still earning a fair amount of money in my balance.”
A HYSA allows you to earn interest on money earmarked for your short-term goals or needs, such as car repairs or… Emergency fund. Although rates may decline, this type of account can still provide better returns than a traditional savings account.
Today’s best savings rates
| Bank | my dad* | minute. Deposit to open |
|---|---|---|
| Farrow | 5.00%** | $0 |
| Newtec Bank | 4.70% | $0 |
| LendingClub | 4.75% | $0 |
| Basque Bank | 4.50% | $0 |
| Everbank | 4.40% | $0 |
| Laurel Road | 4.15% | $0 |
| Synchronization bank | 4.10% | $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 possible. Enter your information below to get the best CNET Partners rate for your area.
Compare the latest savings rates
| CNET Average Savings Last Week APY* | CNET Average Savings for the Week APY | Weekly change |
|---|---|---|
| 4.33% | 4.23% | 2.31% |
Why a high-yield savings account is suitable for short-term goals
Even though interest rates are down from their record highs last year, Flores recommends setting up a HYSA using money you already have stashed away.
Unlike a high-yield savings account, a traditional savings account usually offers only a small return on your savings.
For example, if you make a one-time deposit of $500 into a traditional savings account with an annual rate of return of 0.01%, you will earn 2 cents over six months. If you deposited the same amount into a HYSA with a 4% APY (assuming rates don’t change over the next six months), you’d earn about $10 in interest over the same time period. The $10 you earn for storing money in a HYSA may not seem like a lot, but every dollar counts toward your savings goal.
How to choose a high-yield savings account
It doesn’t hurt to look for better rates to earn more interest while rates are high. Experts recommend comparing prices, offers and fees once a year.
Here are some things to look for in a HYSA:
- Minimum deposit requirements: Some HYSA accounts require a minimum to open an account, usually between $25 and $100. Others don’t require anything.
- Access to ATM machines: Not every bank offers cash deposits and withdrawals. If you need regular access to an ATM, check to see if your bank offers reimbursement for ATM fees or a wide selection of ATMs within the network, said Lanisha Mohib, founder of Polished CFO and member of CNET’s Expert Review Board.
- expenses: Look for monthly maintenance fees, towing, and paper statements, Mohib said. Fees can eat into your balance.
- accessibility: If you prefer in-person assistance, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider banking online.
- Withdrawal limits: Some banks charge excess withdrawal fees if you make more than six withdrawals a month. If you may need to make more, consider a bank without this limit.
- Federal deposit insurance: Make sure your bank or credit union is insured with the FDIC or NCUA. This way, your money is protected up to $250,000 per account holder, per category, in the event of a bank failure.
- Customer Service: Choose a bank that is responsive and makes it easy to get help with your account if you need it. Read customer reviews online and contact the bank’s customer service to learn about working 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 received a score between one (lowest) and five (highest). All savings accounts listed here are insured up to $250,000 per person, per account category, per institution, by the FDIC or NCUA.
CNET evaluates the best savings accounts using a set of specific criteria that compare annual percentage returns, monthly fees, minimum deposits or balances, and access to physical branches. None of the banks on our list charge monthly maintenance fees. An account will receive a higher ranking for offering any of the following perks:
- Account Rewards
- Automated savings features
- Consulting/training services in the field of wealth management
- Cash deposits
- Extensive ATM networks and/or ATM discounts for using out-of-network ATMs
A savings account may be rated lower if it doesn’t have an easy-to-navigate website or if it doesn’t offer useful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also be rated lower.
*APYs as of December 24, 2024, based on banks we track at CNET. Weekly percentage increase/decrease from December 16, 2024 to December 23, 2024.
**Varo only offers 5% APY on balances under $5,000
More saving tips:
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