How to save money in 2024
With just days left in 2023, many Americans are turning a hopeful eye toward 2024. As inflation and interest rate hikes likely damaged their finances in the past year — but with news that inflation is cooling and rates may soon come down — there is cause for cautious optimism.
For savers, in particular, there are multiple paths to take in the new year. These moves could both protect their existing funds and grow them substantially throughout the year. To take advantage, however, savers will need to be well-informed and flexible in their approach. Below, we'll break down three effective ways to save money in 2024, all of which you can easily start working on in the waning days of 2023.
Start by exploring your CD account options here to see how much more interest you could be earning.
How to save money in 2024
Here are three great ways to save money in 2024.
Open a CD
A certificate of deposit (CD) account has been a great way to boost your bottom line this year and that's unlikely to change in 2024, even if many forecast rates to fall. By opening a CD now, you'll lock in one of the highest CD rates in years (you can easily find an account offering 5.75% or higher right now).
But the major benefit of that high rate is that it's locked for the CD's full term, meaning that if interest rates fall in the future, you'll still earn interest at the higher rate until the term has expired. And if you try to withdraw the funds early, you'll be hit with an early withdrawal penalty. This can serve as a great motivator to leave your funds untouched to grow at that higher rate. So, by opening a CD now, you'll not only be saving more money in 2024, but you'll be earning more interest on top of it.
Get started with a CD here now.
Open a high-yield savings account
It may seem obvious that a way to save more money in 2024 is to open a savings account, but a high-yield savings account isn't just any other account. Thanks to inflation and the higher interest rate climate, the APY you can secure on a high-yield account is comparable to the best CDs (with rates frequently in the 5% range).
By opening one of these accounts, you'll still maintain the flexibility you're used to with your traditional savings account, but you'll earn more interest in the interim. And compared to the small 0.46% rate you can get with a regular savings account today, you're essentially losing money by not transferring some or all of your funds into a high-yield account instead.
Open a high-yield savings account online now and start saving more money!
Refinance your mortgage
While today's mortgage interest rates are still elevated compared to what they were in 2020 and 2021, they may now be low enough to justify refinancing for some homeowners. Even a mortgage interest rate of just a single point lower could be worth it for the savings it can provide. But there are other reasons to refinance — and thus save more money — in 2024. By doing so you could eliminate the private mortgage insurance (PMI) that your loan was saddled with when you put down less than 20% on your mortgage.
And you can refinance into a more predictable, and possibly lower, fixed-rate loan if you currently have an adjustable-rate mortgage. Just make sure to stay in the home long enough to break even on the mortgage refinancing closing costs. Otherwise, the money you could save won't be worth it.
Explore your mortgage refinance options online now to see if makes sense for you.
The bottom line
There are myriad ways to save more money in 2024, but the benefits of each will be dependent on the individual in question. For millions of Americans, one great way is to open a CD or a high-yield savings account (or both). Others may benefit from refinancing their existing mortgage rate into a lower, more manageable one, thus freeing up cash to save in the new year. There's no right or wrong answer, but there are a multitude of options to explore, so don't hesitate to get started. Look into opening a top-earning CD here now.
