Key Takeaways
- Inflation is now 2.9%, so if your savings APY is lower than that, your money is steadily losing value.
- Fortunately, you can move money into one of the top high-yield savings accounts, which are paying returns of 4%—5%.
- With Fed rate cuts expected, stashing some savings in a top nationwide CD can help you lock in one of today’s rates for months or even years.
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How to Tell If Your Savings Is Beating Inflation
Inflation has been climbing again, with the latest Consumer Price Index (CPI) in August was 2.9% on an annual basis—the highest since January. That matters because inflation doesn’t just push up prices at the store. It also chips away at what your money can buy over time.
Meanwhile, most banks are paying far less than inflation. The national average savings rate at FDIC-insured banks is just 0.40%, and big names like Chase and Bank of America pay only 0.01%. That leaves millions of savers losing ground every month, which can add up to a sizable loss over time.
For example, if inflation averages 2.5% while your savings earns just 1%, you’re effectively losing 1.5% of your money’s value each year. Fortunately, you don’t have to settle for that. Dozens of accounts paying higher yields are easy to find, letting you protect your savings from inflation.
Why This Matters for You
Inflation erodes buying power, but you don’t have to fall behind. Choosing the right accounts lets your savings hold steady—and even grow—in today’s rate environment.
It’s Not Too Late to Move to a Higher Rate
Even though the Federal Reserve is expected to cut interest rates this fall, moving your money into a top-paying account can help you minimize or avoid losses. Rate reductions should be gradual, and even as they decline, today’s best rates are likely to stay ahead of inflation for a while. Waiting only means your savings continues to lose value each month.
An Easy Way to Keep Your Savings Ahead: Today’s Best High-Yield Accounts
One of the easiest ways to earn more on your cash is by opening a high-yield savings account. You’ll get a higher return than a traditional bank account while keeping full access to your money if you need it.
Though the Fed mildly trimmed interest rates two weeks ago, it’s still a favorable environment for savers: today’s top high-yield savings rates remain near record highs. Sixteen nationwide accounts are currently offering 4.30% APY or better, with some paying as much as 5.00%.
As the chart below shows, the best accounts have consistently beaten inflation for more than two years now, and trend may continue in the coming months and year.
Even if you’re earning multiple times the national average of 0.40%—say, 2.00% APY—you’re still being outpaced by today’s 2.9% inflation rate. By moving to a top account that pays more than inflation, your savings can grow despite inflation’s bite.
To score one of these top high-yield rates, you’ll likely need to go beyond your everyday bank as online banks and credit unions frequently pay the best rates. Fortunately, we make finding the best rates easy with a daily update of our best high-yield savings accounts. And with these options, you can even keep your primary checking at your existing bank.
Big Bank or Small, Your Money’s Equally Protected
How to Use a CD to Boost Returns Before More Fed Cuts Arrive
Once you’ve secured a high-yield savings account, the next step is to upgrade your strategy with a certificate of deposit (CD). While CDs require you to lock up your money for a set term—ranging from a few months to several years—they guarantee your APY for the entire period. That means if interest rates fall, as many expect, your CD will continue paying the higher locked-in rate until maturity.
That kind of protection matters now more than ever, with the Federal Reserve already issuing a rate cut and likely lowering rates further this year and next. Keeping some funds liquid in savings is important, but shifting part of your balance into a CD lets you lock in today’s elevated returns for longer.
Today’s top nationwide CD pays 4.60% on a 7-month term, and another 10 options offer rates of 4.35% or better on terms up to 12 months. Or, if you want to lock in for longer, you can secure guaranteed returns of between 4.15% and 4.25% for 2 to 5 years.
Why CDs Are Easy to Hold Anywhere
Unlike a checking account that you use regularly, CDs are “park it and forget it” accounts—with no transactions to manage until maturity. As a result, they’re easy to hold at a bank or credit union where you don’t already have accounts. So don’t limit your shopping to your current institution. Instead, look for today’s top CD rates in a term that fits your timeline.
Daily Rankings of the Best Savings and CD Accounts
We update these rankings every business day to give you the best deposit rates available:
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.