This savings account still promises 10% — plus 9 more of the highest APYs of January 2025
Here’s what you need to know about the best savings account rates right now
Savings account rates are on the decline at the start of 2025, but banks and credit unions with the highest available rates of return this month continue to promise 5% annual percentage yield or more. Whether or not those returns remain, however, is another story, pros say. (See some of the best savings rates you can get now from our partner Bankrate.)
“These yields will come down as the year progresses and as the Federal Reserve trims interest rates further, but the best chance of continuing to earn a competitive return is with a bank currently paying a competitive return,” says Bankrate Chief Financial Analyst Greg McBride, adding, however, that “you can always move your money if the bank cuts the rate too far below what other accounts are paying.”
Here’s everything you need to know about what’s ahead for high-yield savings account rates, how to pick the best option for your money, and the best-paying accounts of January 2025.
What’s ahead in 2025?
After a flurry of interest rate cuts from the Fed at the end of last year, banks and credit unions also began to make some reductions in what they paid on savings accounts. And the average savings account today delivers just a 0.42% annual percentage yield, according to the latest government figures. This time last year, however, the average was 0.46% APY.
Although many larger banks are indeed cutting their promised rates to well below 1% APY, there are dozens of online-only institutions and credit unions promising big returns right now. That said, even the highest rates won’t be available for long, McBride says. “There are still plenty of online savings accounts with yields of 4.5% or better, so that is a good bogey to use,” he says. (See some of the best savings rates you can get now from our partner Bankrate.)
What to consider before opening a new savings account
Many of the highest available savings rates come with some big hoops to jump through. Whether it be with big minimum balance requirements, limited funds available to earn the highest promoted rates, or restrictive membership requirements, McBride says understanding the fine print is always critical before opening an account.
“Put your money directly with a federally insured bank or credit union, and link the account to your existing checking account so you can transfer the money when it is needed,” he says. “Avoid going through technology providers that call themselves ‘fintechs’ but are not banks and rely on partnering with banks in order to offer bank products. Having a non-bank middleman poses a significant, but little-appreciated risk.”
10 of the best high-yield savings accounts of January 2025
These 10 high-yield savings accounts have the best rates for January 2025. All accounts in this ranking are insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration. Read all the fine print before opening an account to learn about any restrictions or hurdles.
Community Financial Credit Union Savings Accounts: Up to 10.00% APY
This is likely the highest available savings rate available right now, but it comes with a significant restriction. While there is a low $5 minimum required to open an account, only the first $1,000 is eligible to earn this 10% APY. Balances beyond that, however, only earn a return rate of 0.10% APY.
St. Anne’s Credit Union Online Savings: Up to 6.25% APY
Savers at this Massachusetts-based credit union can earn 6.25% APY. However, that high rate only applies to the first $1,000 deposited, with balances beyond that earning as little as 0.03% APY. To qualify, you’ll need to become a member, which means opening an account with a minimum of $5 and living in select counties in Massachusetts or Rhode Island.
Boeing Employees Credit Union: Up to 6.17% APY
This high 6.17% APY account also comes with a sizable catch: It only applies to the first $500, with the remaining balance earning a rate closer to the industry average. What’s more, to become a member and take advantage of what this credit union has to offer, you must live, work, worship, or go to school in Washington State or other counties in Oregon or Idaho.
Digital Federal Credit Union Primary Savings: Up to 6.17% APY
Also among the best of the best this month, this 6.17% APY rate only applies to the first $1,000 and comes with a $500 minimum balance to open. Balances that exceed the $1,000 threshold, however, earn just a meager 0.15% APY, which is well below the industry average. Membership requirements include living in select counties of Massachusetts or in a participating condominium community in New Hampshire but can also be granted to those working for select employer groups or those belonging to local participating organizations.
Apple Bank SmartStart Savings: Up to 6.00% APY
Balances from $1.01 to $10,000 can earn up to 6.00% APY in an Apple Bank SmartStart Savings account. Deposits above that amount, up to $20,000, earn between 3.38% and 6.00%, depending on the balance. A $1 minimum balance is required to open an account.
Andrews Federal Credit Union Online Savings Account: Up to 5.75% APY
This is yet another case where reading the print is critical to understanding your true earning potential. While yes, this is one of the best available rates right now, that promoted 5.75% APY only applies to balances between $0.01 and $1,000, with accounts exceeding that amount earning just 0.05% APY. What’s more, only those who work for one of a dozen eligible employer groups based in Maryland, Washington, D.C., Virginia, or New Jersey can apply, but if you’re not employed by one of the listed organizations, you can qualify through the American Consumer Council.
Oregon Community Credit Union Ignite Savings: Up to 5.25% APY
The 5.25% APY here only applies to the first $500. Accounts with $500.01 to $2,500 earn 3.45% APY. Beyond that, there’s a sliding scale for account balances that bottoms out at 0.15% APY for balances more than $25,000.01. Become a member of the Oregon Community Credit Union by living, working, or belonging to an organization in one of 28 qualified counties in Oregon or by living, working, worshiping, or going to school in Washington State. Those with family members who are members of the credit union can also seek membership, as can students at the University of Oregon, Bi-Mart store members, and Bi-Mart Federal Credit Union members.
Service Credit Union Primary Savings: Up to 5.00% APY
It only takes $5 to open an account and start earning up to 5.00% APY with the Primary Savings account from Service Credit Union. That said, the advertised rate here only applies to the first $500, with balances that exceed that amount earning just 0.25% APY. What may be more restricting, though, is that membership at this credit union is limited to only active-duty military, veterans, and their families, as well as those who currently or previously have worked for the Department of Defense. Another way in is to have worked for one of its eligible employer groups or by joining the American Consumer Council or Financial Fitness Association.
OnPoint Savers Account: Up to 5.00%
This account also requires just $5 to open. And like many of the leading rates this month, this 5.00% APY offer only applies to the first $500, with accounts exceeding that amount earning a low 0.10% APY. To join this credit union, you’ll also have to either live, work, or worship in select counties in Oregon and Washington.
Zynlo Bank Tomorrow Savings Account: Up to 5.00% APY
Meet the low $10 opening deposit minimum, maintain a $0.01 balance, and start earning 5.00% APY today with the Zynlo Bank Tomorrow Savings Account. This is an online-only account and comes without fees.
Add comment
Comments