20 Savings Accounts That Beat Inflation Rates

GOBankingRates Best Savings Accounts of 2020

Americans hoping their savings account rates will stay ahead of inflation have had a tough time over the past few years. In 2022, inflation hit its highest point in more than four decades of 9.1%, according to Statista. The rate has since come down considerably and currently hovers at around 3.5%. Even so, current inflation still outpaces most savings rates by a wide margin.

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The average U.S. savings account interest rate was 0.46% as of April 15, 2024, according to the Federal Deposit Insurance Corp. That’s nearly eight times lower than inflation. Some savings accounts offer rock-bottom rates of 0.01%, meaning any interest you do earn is immediately swallowed up by high consumer prices.

There’s really no excuse to settle for a low savings rate in the current environment, where numerous savings accounts offer annual percentage yields of 5.0% or higher.

In an odd twist, soaring inflation in recent years has contributed to high saving rates. That’s because the Federal Reserve has instituted a series of interest-rate hikes to tame inflation — and when the Fed rate goes up, banks and credit unions usually raise their savings rates.

If you want a high-yield savings account that beats inflation, there are plenty of choices right now. Here are 20 of them.

Interest rates are accurate as of 5/7/2024 and are subject to change.

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This article originally appeared on GOBankingRates.com: 20 Savings Accounts That Beat Inflation Rates