High-yield savings accounts offer over 4% APY as of January 17, 2025

High-yield savings accounts are currently offering annual percentage yields (APYs) over 4%, primarily from online banks and credit unions. This is a decrease from the 5% rates seen last year, with many rates now below 4.50%. Despite falling rates, experts suggest that high-yield savings accounts remain beneficial compared to traditional accounts. For example, a $500 deposit at 4.2% APY could earn $21.60 in interest over a year, compared to just $3.60 at 0.42%. When choosing a high-yield savings account, consider factors like APY, fees, and minimum deposits. CNET reviewed over 50 accounts, ensuring they are insured and have no monthly maintenance fees.