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Key Takeaways
- Inflation climbed to 2.9% in August, according to today’s monthly inflation report.
- That means any of your savings earning less than 2.9% in interest is losing value every day.
- Luckily, there’s an easy fix: Move money into a top high-yield savings account that pays more than the inflation rate. Many options offer well over 4%—some even 5% APY.
- Since the Fed is expected to make multiple rate cuts this fall, stashing a chunk of savings in one of today’s top CDs is also smart, letting you lock in a stellar rate for months or even years.
The full article continues below these offers from our partners.
Why Inflation Makes It Tough for Savings to Keep Up
Inflation rose again last month, with today’s Consumer Price Index (CPI) showing an 0.04% seasonally adjusted increase to a 2.9% annual rate—the highest since January. Even small shifts like this matter, because inflation doesn’t just raise prices at the store. It also reduces what your savings can buy in the future.
The problem is most banks pay far less than inflation. The national average savings rate at FDIC-insured banks is just 0.39%, and big players like Chase and Bank of America pay only 0.01%. That means many Americans are steadily losing buying power each month.
Small Balances Matter Too
Every dollar you save deserves to grow—not shrink. Whatever your balance, it’s worth making sure your money keeps pace with inflation.
For example, if inflation is averaging 2.5% but you’re earning 1% on your savings, you’re effectively losing 1.5% of value a year. Fortunately, you don’t have to settle for that—it’s easy to find accounts that earn more than inflation and protect your money.
Beating Inflation Is Easy With Today’s Best High-Yield Savings Accounts
The simplest way to earn a solid return on your cash is by putting it in a top high-yield savings account. You’ll grow your money while keeping full access in case you need it quickly.
It’s also a lucky time for savers: Today’s best high-yield savings rates remain near historic highs. At least 15 nationwide accounts are currently paying above 4.30%—and some as high as 5.00% APY. As the chart below shows, these top rates have consistently outpaced inflation for more than two years.
Why It’s Still Worth Switching Now
Even though the Federal Reserve is expected to cut interest rates this fall, and savings account yields will drift lower as a result, it’s still worth moving to a top-paying account now. Rate reductions will be gradual at many banks, and even as they ease, today’s rates are likely to remain above inflation for a while. And every month you wait, your savings loses a little more value.
Remember, even if you’re earning more than the national average of 0.39%—say, 2.00% APY—you’re still falling short of today’s 2.9% inflation rate and continually losing purchasing power. Moving to one of the best accounts ensures your savings not only keeps up with inflation but actually earns real returns.
To earn one of these inflation-beating rates, you’ll likely need to look beyond your primary bank, as online banks and credit unions often pay the highest returns. Fortunately, we make it easy to find the best options by ranking the top-paying savings accounts every business day.
Big Bank or Small, Your Money’s Equally Protected
Your deposits at any FDIC bank or NCUA credit union are federally insured, meaning you’re protected by the U.S. government if the institution fails. Coverage is identical—up to $250,000 per person, per institution—no matter the size of the bank or credit union.
Leveling Up: How a CD Can Protect Your Savings as Fed Cuts Approach
Once you’ve secured a high-yield savings account, the next step is to upgrade your strategy with a certificate of deposit (CD). While CDs require you to lock up your money for a set term—ranging from a few months to several years—they guarantee your APY for the entire period. That means if interest rates fall, as many expect, your CD will continue paying the higher locked-in rate until maturity.
That protection is especially valuable now, with the Federal Reserve expected to lower rates later this year and possibly again in 2026. While it’s smart to keep some cash accessible in a savings account, putting a chunk into a CD lets you extend how long you can benefit from today’s elevated yields.
Right now, the top nationwide CD pays 4.60% on a 7-month term, and another 14 options offer rates of 4.40% or better on terms up to 12 months. If you’re comfortable locking in longer, you can even secure a guaranteed return of 4.28% for 2 to 5 years.
Why CDs Are Easy to Hold Anywhere
Because CDs are true “park it and forget it” accounts—with no transactions to manage until maturity—they’re ideal for holding at a bank or credit union where you don’t already have accounts. So don’t limit your shopping to your current institution. Instead, look for today’s top CD rates in a term that fits your timeline.
Daily Rankings of the Best Savings and CD Accounts
We update these rankings every business day to give you the best deposit rates available:
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.
