:max_bytes(150000):strip_icc()/inflation-SandraMilisavljevic-cf530e000e6247bab4c538ed8ff06660.jpg "Inflation’s Up Again—And It’s Raising the Magic Number Your Savings Must Beat")
:max_bytes(150000):strip_icc():format(jpeg)/inflation-SandraMilisavljevic-cf530e000e6247bab4c538ed8ff06660.jpg)
Key Takeaways
- Today’s inflation report shows September prices rose 3.0% over the past year—an uptick from August’s 2.9% reading.
- That means if you’re earning under 3% on your savings, your money is steadily losing value.
- Fortunately, you can move your cash to a top high-yield savings account paying 4% to 5%, or lock in a top CD rate before the Federal Reserve is likely to trim rates next week.
The full article continues below these offers from our partners.
Is Your Savings Keeping Up With Today’s Magic Number?
Inflation rose again last month, with today’s Consumer Price Index (CPI) ticking up to a 3.0% annual rate—the highest since January. Even small moves like this matter, because inflation doesn’t just make groceries and gas cost more—it quietly erodes how much of anything your money can buy.
That makes the inflation rate a sort of magic number—the minimum return your savings needs to earn to avoid losing ground. If your account earns only 1% while prices rise 3%, you’re effectively losing 2% of your money’s purchasing power each year.
Unfortunately, most banks won’t help you close the gap. The national average savings rate is just 0.40%, while big names like Chase, Bank of America, and Wells Fargo pay a near-zero 0.01%.
But you don’t have to settle for that. Accounts that beat the inflation rate are easy to find, and moving your savings can stop the slow drip of lost value while helping your balance grow.
Why This Matters for You
If your savings rate lags behind inflation, your money’s losing purchasing power. Matching—or better yet, beating—the magic number helps preserve your money’s value over time.
How To Stay Ahead With a Top High-Yield Savings Account
One of the easiest ways to win against inflation is with a top high-yield savings account. You’ll earn far more than at a traditional bank and still have full access to your cash when you need it.
Though the Federal Reserve trimmed interest rates in September and is likely to make another reduction next week, it’s still a favorable time for savers. Today’s top high-yield savings accounts include 15 offers between 4.25% and 5.00%, keeping you solidly ahead of the 3% target.
As the chart below shows, the top high-yield savings accounts have outpaced inflation for more than two and a half years—and while that trend won’t last forever, it’s likely to hold for now.
Even a solid 2% APY can’t keep pace with today’s 3% magic number—top accounts are the only way to stay ahead.
Tip
Even with the Fed expected to cut rates, moving your savings now can help you take advantage of today’s higher returns. Rate reductions should be gradual, and top yields are still expected to stay ahead of inflation for a while. Every day you wait, your money loses value.
How To Use CDs To Lock In a Rate Before the Fed Cuts
After you’ve put money in a high-yield savings account, you can level up your strategy with a certificate of deposit (CD). CDs require you to keep your money parked for a set term—anywhere from a few months to several years—but they guarantee your APY for that entire period.
That protection matters now. With the Fed expected to lower interest rates twice this fall, opening one of today’s top CDs—while keeping some funds liquid in savings—can help you preserve an inflation-beating return for longer.
The best nationwide CDs pay up to 4.40% on shorter terms and around 4.00% to 4.25% on longer ones—both well above the inflation benchmark.
Tip
The Fed is overwhelmingly expected to lower rates by a quarter point next week, with another cut likely in December. By opening a CD soon, you lock in today’s higher yields before they start to slip.
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.
