- The best high-yield savings account still offers 5.00% APY, but only for balances up to $5,000.
- If the Fed lowers rates again, savings APYs could drop further, so your balances will accrue less interest.
- Earning interest can help you grow your money towards your 2025 savings goals before the start of the new year.
Savings rates still average around 4.36%, based on our daily tracking. But also the best high yield savings accounts are down from the 6% savings rates we saw a year ago.
There is still one bank that offers 5.00%, but only for balances up to $5,000. But you can still find HYSAs offering APYs well above 4%. While many banks have not changed rates dramatically in recent weeks, an impending rate cut could change that.
If the Federal Reserve lowers rates at its meeting this month, we could see a further decline in savings rates. If you’re focused on sales and vacation plans, you may not yet be thinking about your savings goals for 2025. Using a high-yield savings account is a good way to automate savings. Here are some of the best savings account APYs available right now:
Today’s best savings rates
| Bank | API* | minimum deposit to open |
|---|---|---|
| Precautionary | 5.00%** | $0 |
| Newtek Bank | 4.90% | $0 |
| LendingClub | 4.75% | $0 |
| EverBank | 4.75% | $0 |
| Bask Bank | 4.65% | $0 |
| Via dell’Alloro | 4.50% | $0 |
| Synchrony Bank | 4.10% | $0 |
| American Express | 3.90% | $0 |
| Capital One | 3.90% | $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 partner rate for your area.
How the Fed could affect your savings rate in the new year
When the Federal Reserve raises or lowers the federal funds rate, consumer products like savings accounts tend to follow suit. THE The Fed began cutting interest rates in September as inflation cooled. Since then, savings account APYs have steadily declined.
However, savings rates can rise and fall for other reasons.
“While it is true that HYSAs are affected by Fed decisions, not all institutions adjust their rates immediately, and some may hold back to remain competitive,” said Steven Kibbel, certified financial planner, founder and CEO of Kibbel Financial Planning. “This means that HYSAs continue to be a reliable option for keeping your money liquid while earning more than other low-risk alternatives.”
After the Fed’s first rate cut in September, many banks tracked by CNET began lowering rates on savings accounts. For example, LendingClub cut its APY from 5.30% to 5.15% on October 18, ending its streak as our leading HYSA. On November 7, he further lowered it to 5.00% APY. Last week, its APY fell to 4.75%.
Despite a slight increase in inflation last month, a third rate cut in December is not ruled out. The Federal Reserve also considers other data, such as the unemployment rate. If the Fed cuts rates another quarter of a percentage point in December, as many expect, APYs would likely sink even further.
This means you may see a lower savings rate in the new year. However, even if you can only save a few dollars between now and the end of the month due to vacations and expenses, any extra funds you allocate to a HYSA will help you reach your 2025 savings goals.
A high-yield savings account is still a smart choice for your money
Accumulate money for other short-term goals in a high yield savings account It’s generally a good idea, even if rates go down. High yield savings accounts will still offer better rates than traditional banks.
High-yield savings accounts still offer rates that far exceed traditional savings accounts: more than 10 times more national average. So there’s no time to waste if you want to fill yours emergency fund or start a sinking fund.
More importantly, high-yield savings accounts offer a safe place to park your funds.
“Overall, HYSAs remain a smart choice for savers,” Kibbel said. “Especially if you prioritize affordability and safety, although it is always wise to monitor rate trends.”
There is some degree of uncertainty as to whether rates will fall or hold steady after next month’s Fed meeting, but a HYSA still provides a lot of value.
“In a declining rate environment, it is still useful for people to store cash for short-term needs – think emergency funds, bills and savings for short-term goals – in high-yield accounts with competitive APYs” , said Alex Michalka, vice president of investment research at Wealthfront.
The key difference between using a HYSA for your emergency funds versus a CD or bond is that you can access the funds quickly without incurring penalties. CDs and bonds are better savings vehicles for your long-term financial plans.
If you’re earning close to 0% on your savings, now is a good time to switch. Here’s where savings rates stood at the beginning of this week compared to the beginning of last week:
Compare the latest savings rates
| Last Week’s CNET Average Savings APY* | This week’s CNET average savings APY | Weekly change |
|---|---|---|
| 4.41% | 4.36% | -1.15% |
What to consider when opening a high-yield savings account
When deciding which account and bank are best for your savings, here’s what to look for:
- Minimum Deposit Requirements: Some HYSAs require a minimum amount to open an account, typically between $25 and $100. Others require nothing.
- Access to the ATM: Not all banks offer cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM fee refunds or a wide range of in-network ATMs, said Lanesha Mohip, founder of Polish CFO and a member of CNET’s expert review board.
- Commissions: Watch out for fees for monthly maintenance, withdrawals and paper statements, Mohip said. Charges 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 an online bank.
- Withdrawal Limits: Some banks charge an excess withdrawal fee if you make more than six monthly withdrawals. If you think you need to earn 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 support: 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 get an idea of how to work with the bank.
Methodology
CNET examined savings accounts at more than 50 traditional and online banks, credit unions and serviced financial institutions nationwide. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all insured up to $250,000 per person, per account category, per institution, by the FDIC or NCUA.
CNET rates the best savings accounts using a set of established 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 be ranked higher if it offers one of the following benefits:
- Account bonus
- Automated saving features
- Wealth management consultancy/coaching services
- Cash deposits
- Expanded ATM networks and/or ATM discounts for out-of-network ATM use
A savings account may score lower if it doesn’t have an easy-to-navigate website or if it doesn’t offer helpful features like an ATM card. Accounts that impose restrictive residency requirements or fees for exceeding monthly transaction limits may also have a lower rating.
*APY as of December 3, 2024, based on banks tracked on CNET. Weekly percentage increase/decrease from November 25, 2024 to December 2, 2024.
**Varo offers a 5% APY only on balances under $5,000
