Summarize this content to 2000 words in 6 paragraphs If the Fed holds rates steady this week, banks may do the same for savings rates. The best online-only banks and credit unions still have savings rates well above 4% APY. The sooner you take advantage of a high-yield savings account, the more interest you can earn. Switching where you save your money can be time-consuming and unexciting — until you realize how much interest you could be missing out on. If you’re still holding money in a traditional savings account, it’s time to consider one of the best high-yield savings accounts. Many credit unions and online-only banks have annual percentage yields over 4%, with the highest at 5% APY. That’s over 10 times the national average of 0.41%. And you’ll still be able to deposit and withdraw money as needed. However, savings rates are fixed and can change at any time. To maximize earnings on money you’re already saving, here are the banks currently offering the best rates and what to consider before opening an account. Today’s best savings rates Bank APY*Min. deposit to openVaro 5.00%**$0Newtek Bank 4.70%$0LendingClub 4.50%$0Bask Bank 4.50%$0EverBank 4.40%$0Synchrony Bank 4.10%$0Laurel Road 4.00%$0American Express 3.80%$0Capital 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 CNET’s partners’ best rate for your area.How will the Federal Reserve impact savings rates this year?When the central bank raises or lowers its federal funds rate range, banks tend to follow suit by moving borrowing and savings rates in the same direction. When the Fed slashed interest rates to spur spending at the beginning of the pandemic, for example, savings rates dropped too. A year ago, the best savings rates were over 5% APY. But as inflation showed signs of cooling toward the end of the year, the Federal Reserve lowered rates three times. Banks mostly followed suit, cutting APYs on high-yield savings accounts. With inflation inching back up recently, most experts predict that the central bank won’t lower interest rates again at this week’s Federal Open Market Committee meeting. If rates hold steady, you may have more time to earn interest on your savings at the current rates. Even if the Fed holds leave rates alone at its meeting this week, as expected, we don’t recommend waiting. Banks could still decide to lower savings rates further. However, a high-yield savings account should still be a part of your money strategy this year, experts say. In addition to earning interest, the accounts offer flexibility to deposit and withdraw money when you need it. “People may hesitate if it’s worth it to open a HYSA with the lower rates we are currently seeing,” said Danielle Flores, a CNET Money Expert Review Board member and founder of I Like to Dabble. “It is always worth it to earn a little extra on your already saved money.”💰You can earn up to 4.65% APY on the best CDs. Check out today’s rates. Average savings rates from week to week Last week’s CNET average savings APY* This week’s CNET average savings APYWeekly change4.16% 4.15%-0.24% What to know before switching to a high-yield savings accountBecause credit unions and online-only banks are most likely to offer high-yield savings accounts, that may change how you manage your savings. For example, some online-only banks don’t accept cash deposits and may not have physical locations for in-person assistance. Here are some other factors to consider when opening a HYSA.Account requirements: Some HYSAs require a minimum amount to open an account, typically between $25 and $100. Others don’t have any minimums. You should be aware of balance requirements to ensure your account stays in good standing and continues earning interest. 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 reimbursements or a wide range of in-network ATMs, said Lanesha Mohip, founder of the Polished CFO and another CNET Expert Review Board member.Fees: Look out for fees for monthly maintenance, withdrawals and paper statements, said Mohip. The 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 may need to make more, consider a bank without this limit.Safety and security: Make sure your bank is insured with the Federal Deposit Insurance Corporation — or the National Credit Union Administration for credit unions. This way, your money is protected up to $250,000 per account holder, per category, if the bank fails.Customer service: Choose a bank that’s responsive and makes it easy to get help with your account if you need it. Read online customer reviews and contact the bank’s customer service to get a feel for working with the bank.MethodologyCNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. 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 evaluates the best savings accounts using a set of established criteria that compares annual percentage yields, 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 rank higher for offering any of the following perks:Account bonusesAutomated savings featuresWealth management consulting/coaching servicesCash depositsExtensive ATM networks and/or ATM rebates for out-of-network ATM useA savings account may be rated 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 be rated lower.*APYs as of Jan. 28, 2025, based on the banks we track at CNET. Weekly percentage increase/decrease from Jan. 20, 2025, to Jan. 27, 2025.**Varo offers 5% APY only on balances of less than $5,000.More savings advice
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