Is Your Savings Keeping Up With Today’s Inflation? Most Americans Say Theirs Isn’t—But Here’s an Easy Fix.

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Americans Are Feeling Inflation’s Crunch on Their Bank Savings

When asked whether the money in their bank accounts is keeping up with inflation, 65% of respondents in a recent WalletHub survey said no, it isn’t. That’s not surprising because inflation has been wavering in the 3% neighborhood for almost two years now, which is much higher than what many Americans are earning on their bank balances.

In fact, the national average savings account rate among FDIC banks is currently a meager 0.41%. Anyone earning that minor return is losing buying power every month.

Yet, only 29% of the survey respondents said they planned to open a new bank account in the next 12 months. When asked what was holding them back from trying a small bank or credit union—many of which pay much higher interest rates than big banks—almost 40% of respondents chalked it up to unfamiliarity with the institution.

Easy Ways to Earn More Than Inflation Is Costing You

Fortunately, it’s not hard to earn quite a bit more than the national average savings rate. But even if your bank is paying an annual percentage yield (APY) of 2%–3%, you may still be losing the battle against inflation.

That’s why a high-yield savings account is so smart right now. While these accounts don’t always out-pay inflation, that’s been the case for close to two years now. As you can see below, the top high-yield savings account rate began topping inflation in April 2023, and the gap has been quite wide ever since. Today, the best savings account lets you earn 1.75 percentage points more than the latest inflation reading.

High-yield savings accounts aren’t the only option, though. If you want to keep easy access to your money but also want the ability to write paper checks from your savings, consider one of the best money market accounts, which also pay up to 4.75% right now.

Or think about a certificate of deposit (CD). Although CDs require you to commit your funds for a period of months or years, they allow you to secure a guaranteed return for the CD’s full term. If U.S. interest rates fall in the future, savings and money market rates will drop—but any CD rate you’ve locked in will be yours to keep until the CD matures.

Right now, the top nationwide CD pays 4.73% on a 7-month term, but you can grab a rate of 4.35% or better in every CD term from 3 months to 5 years.

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.