Currently, the best high-yield savings accounts has an annual percentage yield of 4%. You may find the best rates at online banks and credit unions compared to mainstream brick-and-mortar banks, but these high savings rates may not last.

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

Here are the best savings rates we’ve found and what experts recommend considering 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 CNET partner rates for your area.

Where can I find the highest savings rate?

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

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

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

Not as high as the 5% APYs we saw from some banks last year. Rates have hovered below 4.50% APY, and experts predict the decline will continue.

“People may question whether it’s worth opening a HYSA with the lower rates we’re seeing now,” he said. Danielle Floresa CNET Money Expert Review Board member and founder of I Like to Dabble. “It’s always worth it to earn a little extra on your already saved money.”

Savings rates are variable and will continue to fluctuate, but the interest earned will increase in the long run, Flores pointed out. In addition, the rates for HYSA are higher than most traditional savings accounts, so you can earn more interest on your money.

For example, let’s say you make a one-time deposit of $500 in a HYSA with a 4.2% APY. If the 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 will earn $3.60 in the same time frame.

Features to consider when choosing a high yield savings account

Here are some things to look for when opening a HYSA.

• Minimum deposit requirement: Some HYSAs require a minimum amount to open an account, usually between $25 and $100. Some don’t need anything.
• ATM Access: Not all banks offer cash deposits and withdrawals. If you need regular ATM access, check to see if your bank offers ATM fee waivers or a wide range of in-network ATMs, says Lanesha Mohip, founder of Polished CFO and another member of the CNET Expert Review Board.
• Fee: Look at the fees for monthly maintenance, withdrawals and paper statements, says Mohip. Charges can eat into your balance.
• Accessibility: If you want personal help, look for a bank with physical branches. If you’re comfortable managing your money digitally, consider an online bank.
• Withdrawal limits: Some banks charge extra withdrawal fees if you make more than six monthly withdrawals. If you need to make more, consider a bank without this limit.
• Federal deposit insurance: Make sure your bank or credit union is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, respectively. This way, your money is protected up to $250,000 per account holder, per category, in case the bank fails.
• 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 a feel for working with the bank.

procedures

CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with services nationwide. Each account receives 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 evaluates the best savings accounts using a set of established criteria that compare annual percentage yields, 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 is ranked higher for offering any of the following benefits:

• Account bonuses
• Automatic storage features
• Wealth management consulting/counseling services
• Cash deposits
• Multiple ATM networks and/or ATM rebates for out-of-network ATM use

A savings account may be rated lower if it has an easy-to-navigate website or if it doesn’t offer helpful features like an ATM card. Accounts that impose strict residency requirements or fees for exceeding monthly transaction limits may also be rated lower.

*APYs as of January 10, 2025, based on banks we track at CNET. Weekly percentage increase/decrease from Dec. 30, 2024, to Jan. 6, 2025.

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

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