20 SAVINGS ACCOUNTS THAT BEAT INFLATION RATES

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.

1. My Banking Direct: 5.55% APY, minimum balance of $1 required to earn interest
2. Poppy Bank: 5.50% APY, minimum balance of $1,000 required to earn interest
3. Ivy Bank: 5.30% APY, minimum balance of $2,500 required to earn interest
4. TAB Bank: 5.27%  APY, minimum balance of $0.01 required to earn interest
5. Cloudbank 24/7: 5.24% APY, minimum balance of $1 required to earn interest
6. Evergreen Bank Group: 5.25% APY, no minimum balance required to earn interest
7. Newtek Bank: 5.25% APY, no minimum balance required to earn interest
8. UFB Direct: 5.25% APY, no minimum balance required to earn interest
9. Western Alliance Bank: 5.24% APY, minimum balance of $1 required to earn interest
10. Upgrade: 5.21% APY, minimum balance of $1,000 required to earn interest
11. Customers Bank: 5.14% APY, minimum balance of $1 required to earn interest
12. RBMAX: 5.15% APY, no minimum balance required to earn interest
13. EverBank: 5.15% APY, no minimum balance required to earn interest
14. Popular Direct: 5.15% APY, minimum balance of $0.01 required to earn interest
15. Elevault: 5.13% APY,  no minimum balance required to earn interest
16. Bread Financial: 5.15% APY, $100 minimum balance required to earn interest
17. BMO Alto Online Savings: 5.10% APY, $0.01 minimum balance required to earn interest
18. Bask Bank Interest Savings: 5.10% APY, no minimum balance required to earn interest
19. Salem Five Direct: 5.01% APY, $0.01 minimum balance required to earn interest
20. Betterment Cash Reserve: 5.50% APY, no minimum balance required to earn interest

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

2024-05-07T19:05:27Z dg43tfdfdgfd