How high are savings rates now?
Persistent inflation has been in the headlines for roughly a year and a half now. The latest increase, in August 2023, was the largest we've seen in over a year. For consumers, that means continuing high prices across the board for everything from gas to groceries.
One bright spot to this ongoing inflation is that it means higher interest rates for savers. This is beneficial at any time, but especially when inflation is eroding your purchasing power.
Check out today's top savings rates now and start earning more money.
How high are savings rates now?
As of September 14, 2023, the average national savings rate is 0.43%. However, that's for regular savings accounts. Today's top high-yield savings accounts offer rates averaging between 4.25% and 5.20%. That can make a big difference in your earning potential. And by opening an account now, you can take advantage of these rates for longer, maximizing your earnings.
Compare high-paying savings accounts online now.
How to get the best interest rate on a savings account
Here's how to take full advantage of today's high savings rates and earn as much as possible.
Open a high-yield savings account
A high-yield savings account is specifically designed to give you the best interest rate available. If your savings aren't in a high-yield account, you're essentially losing out on free money.
Switching to a high-yield savings account is easy; you can do it in a few minutes from the comfort of your home. Given you can earn up to 12 times the national average (or more) with this move, there's no excuse not to do it!
Consider online banks
Some of the highest savings account interest rates on the market today are offered by online banks. These banks have lower overhead costs than traditional brick-and-mortar banks, so they're able to pass the savings on to you in the form of better rates.
In addition, online banks often have low or no fees, convenient 24/7 account access and several ways to contact customer service. And while some online banks don't offer ATM access, there are plenty that do.
Check out current high-yield savings account options here.
Shop around
High-yield savings accounts aren't created equal, so it pays to do your research. Take the time to compare multiple accounts, considering not only their interest rates but also their fees and terms like minimum deposit or balance requirements.
Look for promotional offers
Sometimes, banks offer promotions for new customers, often in the form of bonuses that can net you hundreds of dollars in extra cash. Keep an eye out for these specials, as they can help you maximize your savings. Just make sure to read the fine print to understand the requirements to qualify for the offer.
Negotiate with your bank
If you already have a savings account, you can call your existing bank or credit union and ask for a higher interest rate. They may offer you a better rate to keep your business, especially if you've been a long-time customer or have a large amount on deposit. It doesn't hurt to ask, and the worst-case scenario is they say no.
The bottom line
With rates high and possibly going higher soon, now is a great time to open a high-yield savings account and grow your money faster. Every extra cent counts, especially when inflation is high and negatively impacting other aspects of your financial life.
