4 expert recommendations for savers today
You may already know the benefits of saving money amid today's high interest rates. Opening a high-yield savings account now can help you yield upwards of 5% APY in some cases, potentially adding a significant sum to your overall balance over time. And on the cusp of yet another rate hike from the Federal Reserve, there could be even more opportunity for growth in the near future.
Even after you've opened a high-yield savings account, you can take action to ensure you're making the most of the account and the money you save. Experts we've spoken to believe that you'll get the most from saving while rates are high when you also practice solid savings habits to help grow your balance over the long-term.
Find out the top savings rates you could be earning right now here.
4 expert recommendations for savers today
We asked four experts what actions they recommend savers take now through the end of 2023. Here's what they said:
Review your existing accounts
Set yourself up for success with a great high-yield savings account after reviewing the accounts you already have open. There's a high likelihood you may have a savings account earning less than 1%, says Mike Zeiter, CFP, owner and financial planner at Foundations Financial Planning. "A quick review of what your accounts are paying in interest and your time frame for your funds will help ensure you take advantage of the current savings rate environment."
If you're not satisfied with your current rate, look for accounts earning competitive interest rates today. Consider starting your search with a baseline threshold of 4.20% APY — 10 times the national average. But compare other online accounts earning 4.50% or even close to 5.00% APY too, using details like monthly fees, minimums, access and more.
Start comparing the best savings account rates available now and save more today!
Automate
The easier you make it for yourself to save, the more likely you are to stick to it.
"It's easy to let hard-earned cash slip through your fingers if you don't have a system and plan in place," says Ryan Greiser, CFP and founder and financial planner at Opulus financial planning firm.
Automating your savings contributions can help streamline the process. When you automate, a predetermined amount of money will be transferred directly to your savings on a regular basis (monthly, biweekly, etc. — whatever you decide).
"Pay yourself first," Greiser says. "Think of it as a financial mantra to live by. Before spending money on things that you love, channel a portion of your income towards savings and investments. Automate this and keep the momentum going. Because guess what? If you wait to save whatever's left after spending, you might end up with nothing."
Stay informed
To further improve your plan, make sure you take stock of your current savings balance, budget and overall financial goals.
"Review your current savings strategy and financial goals," says Jason Hamilton, CFP, founder of Keep It Simple Financial Planning. "Assess whether you have sufficient emergency savings, short-term goals, and long-term objectives. Make adjustments as needed to align with your changing circumstances."
But even after your savings plan is in place, that doesn't necessarily mean you should set-it-and-forget-it. It pays to stay informed on your plan and performance — like, for example, how your balance is growing over time, whether you're approaching your goals at the pace you expected and where current interest rates are.
"Keep yourself updated on changes in interest rates, market conditions, and economic trends," Hamilton says. "Staying informed will help you make informed decisions about your savings and investment strategies."
Don't wait
Perhaps one of the most frequent messages we hear from experts we speak with is to start saving sooner rather than later.
"Get started today!" says Michelle M. Vargas, CFP, president of Waymaker Financial Planning. "Take one small step each week toward reaching your financial goals. It pays huge dividends in the future once you stick with your plan and make small improvements over time."
It can seem like a huge task to find the perfect savings account, set up a plan and work out other details before you can save — but remember, getting started is more important than perfection. You can always change your automated transfer amount later, or open another high-yield savings account devoted to a new savings goal once you've gotten into the habit of saving.
But starting the process today can help you take advantage of current high interest rates for as long as possible, and ultimately add more to your savings with interest earnings over time.
Find out what you can earn now with today's top savings rates.
The bottom line
Saving money is one of the best ways to get ahead in today's high interest rate environment. To make the most of your savings, the experts we've spoken to recommend not only reviewing your accounts and finding a high-earning savings account, but also automating your contributions and reviewing progress and new options over time. But most importantly, don't hesitate. By starting to save early, you'll have more time to reach your goals and can get the most value from current high rates.
