In the current market environment, earning more than 5% on savings accounts is possible, according to MaxMyInterest CEO Max Zimmerman. A year of rising interest rates has led to the emergence of top-earning savings accounts offering at least 5.30% annual percentage yield (APY) in January 2024. However, many traditional brick-and-mortar institutions still provide less than 1% APY.

The high savings rates can be attributed to the Federal Reserve's efforts to curb inflation. In 2023, the Federal Reserve raised rates four times, leading to a climb in savings account yields. However, since July 2024, the Fed has put rate increases on hold.

The average APY for savings accounts has seen significant growth over the past year. As of December 2024, the average savings account offers a 0.46% APY, compared to just 0.30% APY a year ago.

Despite the possibility of rate cuts in the future, experts believe that savings accounts will continue to provide a high rate of return. Online banks are expected to offer the best rates in 2024, as they have fewer overhead costs associated with physical branches. These banks have a growing appetite for deposits and are willing to pay higher rates compared to larger brick-and-mortar banks.

Financial experts emphasize the importance of finding the highest rate possible that suits individual needs. Key factors to consider when seeking high-yield savings accounts include a yield of 5% or more, federal insurance coverage, and minimum deposit requirements that are $100 or less.

To assist individuals in their search for high-yield savings accounts, a list of the top 10 deposit rates for January 2024 is provided. It is essential to thoroughly review the terms and conditions of each account to fully understand any potential restrictions or requirements.

Despite the attractive offerings, some high-yield savings accounts come with limitations. Certain accounts only offer the highest APY on a small portion of the deposit balance, while the rest earns a lower rate. Additionally, membership requirements may be in place for eligibility.

In summary, high-yield savings accounts with returns above 5% are available in 2024. The Federal Reserve's actions to curb inflation have contributed to the rise in savings rates, and online banks are likely to provide the best rates. Individuals are encouraged to compare account offerings and terms to ensure they find the account that best meets their needs.