5 simple ways to score the best savings rates right now
Interest rates fluctuate and economic conditions evolve, which can make finding the best savings rates a challenging task. The last few years are a great example of this. In 2021 and 2022, interest rates were very low across the board, which was due, in large part, to the pandemic. That made it a great time to borrow money affordably, but it wasn't a great time to grow your savings.
But when inflation began to skyrocket in 2022, the Federal Reserve began raising its benchmark rate to try and temper it. In turn, loan and deposit account rates also began to climb and have continued in the time since. And, while it appears that the Fed's plan to get inflation under control is working, things aren't fully back on track just yet — and there could be another change to the rate environment when they meet again next month.
Given that interest rates fluctuate and the financial climate evolves, it's essential that savers stay informed and proactive — and that's especially true if they want to secure the best savings rates available right now. In addition to staying informed, there are a few simple ways for savers to find the top savings account rates available today.
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5 simple ways to score the best savings rates right now
Finding the best savings account rates doesn't require a ton of work. In fact, there are a few simple ways you can do that:
Explore high-yield savings accounts
High-yield savings accounts function just like regular savings accounts, but the big difference is that high-yield savings accounts typically offer higher interest rates compared to standard savings accounts. For example, the average rate on a regular savings account is just 0.46% currently, but there are lots of high-yield savings accounts offering 5% or more on your money. That's a significant difference in rates.
That said, these types of accounts may come with certain conditions, such as maintaining a minimum balance or limiting the number of withdrawals, in order to earn the highest APYs. Not all of them do, though, so just be sure to evaluate your financial habits and choose an account that aligns with your needs.
Learn more about today's top savings accounts here.
Compare rates — and continue to regularly
Don't settle for the first savings account you come across. Financial institutions frequently adjust their rates to stay competitive, so if you opt for the first savings account you find, you're probably leaving some interest earnings on the table.
Regularly compare rates offered by different banks, credit unions and online financial institutions instead to ensure you're getting the most competitive rate available. And once you open the right account, it may benefit you to continue comparing rates on occasion to make sure that you're still earning the most interest possible on your money.
Consider online banks
Online banks often offer higher savings rates than traditional brick-and-mortar institutions. That's because, with lower overhead costs, online banks can pass on the savings to customers in the form of higher interest rates.
And, these banks typically function very similarly to brick-and-mortar banks (and typically have the same FDIC insurance protections, too). The main difference is that there are no locations to visit if you need assistance. So, if you want the best rate on your savings, it can benefit you to research reputable online banks and explore their savings account options.
Take advantage of promotions and bonuses
Many financial institutions will also offer promotions and bonuses to attract new customers. And, if you time it right, these types of promotions can result in a higher interest rate on your savings. So, as you shop around for a new account, be sure to keep an eye out for limited-time offers, such as sign-up bonuses or promotional interest rates for the first few months. And, be sure to also understand the terms and conditions for any account, promotion or bonus you consider to ensure that everything aligns with your financial goals.
Consider other types of interest-bearing accounts
High-yield savings accounts aren't the only option you have to earn hefty interest on your savings. Certificates of deposit (CDs) accounts can also provide higher interest rates than regular savings accounts — and the rate is fixed so you earn the same interest throughout the full CD term.
However, it's important to note that CDs aren't nearly as flexible as high-yield savings accounts are. That's because CDs typically require you to lock away your money for the full CD term, during which your money is typically inaccessible without incurring penalties.
If you want to take this route, assess your financial goals and liquidity needs before committing to a CD, and consider laddering CDs with varying maturity dates for a balanced approach.
The bottom line
Securing the best savings rates requires a combination of vigilance, research and strategic decision-making. Stay informed about economic trends, compare rates regularly and explore different types of savings accounts to find the option that best aligns with your financial goals. By employing these strategies, you can make the most of your savings and optimize your financial well-being in the current economic landscape.
