- The Superior High Yield Savings Account still offers 5.00% APY, but the high rates may not last.
- If the Fed lowers rates again, savings APYs could drop further, so your savings will accrue less interest.
- Even when rates drop, a HYSA will help you grow your savings while giving you the flexibility to access your money when you need it.
The end of the year is approaching. And while there is still time to earn interest from one of the better high-yield savings accountswe don’t know how long these 4% rates will last. APYs have already fallen from their highs of 6% since last year.
If the Federal Reserve cuts the federal funds rate again at its December 17-18 meeting, we could see even lower savings rates. Although the Fed does not directly affect savings rates, banks tend to follow the direction set by the central bank.
Savings rates haven’t changed dramatically in recent weeks, but banks have steadily lowered APYs since the Fed began cutting rates in September.
Even though we’re in the midst of the holiday season, it’s best to start thinking about yours Savings targets 2025 while rates are still favorable. You can automate your savings and earn interest on any money you can set aside before the end of the year. Here are some of the top APY savings accounts available right now:
Today’s best savings rates
| bank | APY* | Min. deposit to open |
|---|---|---|
| Precautionary | 5.00%** | $0 |
| Newtek Bank | 4.90% | $0 |
| LendingClub | 4.75% | $0 |
| EverBank | 4.75% | $0 |
| Basque Bank | 4.65% | $0 |
| Laurel Road | 4.50% | $0 |
| Sync 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 possible APY. Enter your information below to get the best rate from CNET partners for your area.
How the Fed’s Next Decision Could Affect Your Savings Rate
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, APYs on savings accounts have been steadily falling.
However, savings rates can go up and down for other reasons.
“While it is true that the Fed’s decisions influence HYSAs, not all institutions adjust their rates immediately, and some can remain competitive,” said Steven Kibbel, certified financial planner and founder and CEO of Kibbel Financial Planning. “This means HYSAs remain 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 cutting rates on their savings accounts. For example, LendingClub lowered its APY from 5.30% to 5.15% on October 18, ending its streak as our top HYSA. On November 7th, it lowered it further to 5.00% APY. Last week, its APY dropped to 4.75%.
Despite a slight pick-up in inflation last month, a third rate cut in December is not out of the question. The Federal Reserve also takes into account other data points, 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 further.
That means if the Fed cuts rates again at its December meeting, you could 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 put into a HYSA will help put you on track to reach your savings goals of 2025.
It’s still worth opening a high-yield savings account before the new year
Store money for other short-term goals a high yield savings account it’s generally a good idea, even if the rates go down.
High-yield savings accounts still offer rates that far exceed traditional savings accounts, more than 10 times national average. So there is no time to waste if you want to do it emergency fund or start to depreciation fund.
More importantly, high-yield savings accounts provide a safe place to park your funds.
“Overall, HYSAs remain a smart choice for savers,” Kibbel said. “Especially if you prioritize affordability and security, although it’s 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 offers plenty of value.
“In a declining rate environment, it’s still valuable for people to store cash for short-term needs—think emergency funds, bills, and savings for short-term goals—instead of high-yielding 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 any 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 stand at the start of this week compared to the start of last week:
Compare the latest savings rates
| CNET Average Savings Last Week APY* | CNET’s average savings APY this week | Weekly change |
|---|---|---|
| 4.41% | 4.36% | -1.15% |
What you need to know before opening a high-yield savings account
When you’re 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, usually between $25 and $100. Others require nothing.
- Access to the ATM: Not all banks offer cash deposits and withdrawals. If you need regular access to ATMs, check to see if your bank offers ATM fee reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of Polished CFO and member of the review board of CNET experts.
- Rates: Look at fees for monthly maintenance, withdrawals and paper statements, Mohip said. Charges may affect your balance.
- Accessibility: If you prefer face-to-face support, 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 excessive withdrawal fee if you make more than six monthly withdrawals. If you think you may need to earn more, consider a bank without this limit.
- Federal Deposit Insurance: Make sure your bank or credit union is FDIC or NCUA insured. 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 for you 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 reviewed savings accounts from more than 50 traditional and online banks, credit unions and financial institutions with services nationwide. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are insured up to $250,000 per person, per account category, per institution, by the FDIC or the NCUA.
CNET evaluates 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 for offering any of the following benefits:
- Account Bonuses
- Automated savings features
- Consulting/coaching services in asset management
- Cash deposits
- Wide ATM networks and/or ATM discounts for using out-of-network ATMs
A savings account may have a lower rating 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 6, 2024, based on banks we track at CNET. Weekly percentage increase/decrease from November 25, 2024 to December 2, 2024.**Varo offers 5% APY only on balances under $5,000
