How to get the best savings rates in 2024

There’s one segment of the country who’ve enjoyed the recent high interest-rate environment: Savers. 

After years of dealing with near-0% yields, savers can now easily earn 4% on their cash thanks to the Federal Reserve’s policy of ratcheting up borrowing costs to stymie the post-pandemic surge in prices. 

But how long will this dynamic last? With inflation moderating, and the Fed signaling that it’s close to ending rate hikes, savers might not enjoy 2024 as much as they did 2023.

Account details and annual percentage yields (APYs) are accurate as of Nov. 7, 2023. Rates shown are for ZIP code 10024.

What to expect from savings rates in 2024

Federal Reserve Chair Jerome Powell has indicated that the need for further rate hikes may be reduced in 2024, as the economy shows signs of slowing down and the rate of price growth slows. 

But nothing is set in stone. 

Inflation, after all, has yet to be brought under control. Prices, using the Fed’s preferred inflation gauge, are still growing (3.7% in September) well above the central bank’s 2% target. Meanwhile, the wars in Ukraine and between Israeli and Hamas have the potential to keep overall prices, including food and energy, high. 

Therefore, It’s difficult to know exactly what will happen to savings rates in 2024.

If the Fed’s plan works, inflation will level off. That will mean the central bank can keep rates unchanged. While that won’t push savings rates higher, it will mean that savers can continue to enjoy today’s elevated rates compared to the period of the Great Recession.

If inflation suddenly spikes again, the Fed will likely resume its rate hike regime. That will be to the benefit of savers, who will be able to earn even more yield.

However, should the economy slow too much, perhaps even contracting for a period of time, the Fed will likely cut rates to stimulate economic growth. In that scenario, banks will respond by lowering yields for savers, and life will more resemble the pre-pandemic era. 

How to get the best savings rates

Getting the best savings rates isn’t difficult if you follow the right process. Here’s how to find the best savings rates:

• Research different savings account rates.
• Avoid tiered interest rate structures.
• Check the terms for promotional rates.
• Shop around.

Research different savings account rates

You can start by checking the best high-yield savings accounts, or you can write down the rates you find when evaluating options.

Not only should you check rates at different banks and credit unions, but you should also look into different account types. High-yield savings accounts are always a good place to start, but you can also look into other savings vehicles, such as money market accounts and certificates of deposit (CDs).

Each account type has pros and cons, but you might also find different rates. For instance, CDs might have higher rates than savings accounts because they require you to keep your money in the account for a certain time, but a savings account is more liquid, thereby better for emergency savings. 

Don’t be seduced by lackluster tiered interest rate structures

When looking for the best savings rates, it’s a good idea to avoid tiered interest rate structures. Essentially, lower balances earn lower interest rates, and the rate increases as your balance increases. 

Take TD Signature Savings, for example, which earns 0.01% to 0.05% on its TD Signature Savings Standard account and from 0.01% to 4.00% APY on the TD Signature Savings Bump rates (increased rates if you link an eligible TD account). Rates depend on balance amounts and if you link an eligible TD account. The lowest rate is much lower than the national average of 0.46%, according to the FDIC (as of October 16, 2023). But the rate bumps up to 2.00% when you reach $10,000 to $24,999.99 and tops out at a respectable 4.00% under its “bump rate” scheme. And you’ll need at least $100,000 in the account to get the highest APY.

While this tiered approach can incentivize people to save, several banks and financial institutions offer high savings rates regardless of your balance.

Check the terms for promotional rates

Some savings accounts offer higher promotional rates for a limited time, usually to attract new customers. These promotional periods may vary in length, such as three, six or 12 months. Once the promotional period ends, the account typically reverts to a standard and lower interest rate.

These accounts can also have terms that make them somewhat limited. For instance, you might have to maintain a minimum balance, make no or few withdrawals or make regular deposits. Keep an eye out for these caveats before opening your account.

Shop around

It’s important to shop around when looking for the best savings account rate. Though it can be convenient to stick with your current bank or credit union, the institution may not have the best rate on savings.

Keep in mind that online banks have certain features that can make them an attractive place to keep your savings. They have some of the highest rates available, often with very few fees because they don’t have expenses to maintain brick-and-mortar branches. Higher rates aren’t always the case, but that’s why it’s important to shop around.

See savings account interest rates by bank

Some banks offer higher interest rates on savings than others. Here’s how interest rates stack up at some of the most popular banks.

Capital One savings account

The Capital One 360 Performance Savings Account currently has a 4.30% APY, with no monthly or maintenance fees. With this account, you earn the same APY on your entire balance. There is also no minimum balance to keep your account open.

Chase savings account

Though Chase is one of the largest banks in the country, the rates on its savings accounts leave much to be desired. It offers two savings accounts: Chase Savings℠ and Chase Premier Savings℠. The Premier Savings account has better rates, but you can only earn a maximum APY of 0.02% with this account. 

Wells Fargo savings account

Wells Fargo savings accounts include the Wells Fargo Way2Save® Savings account and the Wells Fargo Platinum Savings account.. Way2Save earns 0.15% APY, while Platinum Savings has a tiered structure ranging from 0.25% to 2.50% APY, depending on your savings balance. 

The highest rate of 2.50% is for those with a balance of $1 million or more. Both Way2Save Savings and Platinum Savings require a $25 minimum opening deposit, and Platinum Savings requires a $3,500 minimum daily balance to avoid the $12 monthly service fee. 

TD Bank savings account

TD savings accounts include TD Simple Savings and TD Signature Savings. The Simple Savings account earns just 0.02% APY. Signature Savings also uses a tiered approach ranging from 0.01% to 0.05% APY for its standard rates and 0.01% to 4.00% for its bump/relationship rates. Higher balances earn a higher APY with Signature Savings. Balances from $0.01 to $9,999.99 earn just 0.01%. Balances between $10,000 and $24,999.999 earn 0.05%. If you link an eligible TD account, the APY bumps up to 2.00%.