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6 high-yield savings accounts that are beating inflation

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If you're still using a regular savings account, it's time to change that. Getty Images

The persistent inflation that had been negatively impacting the economy appeared to be cooling in recent months — welcome news after the Fed's 11 interest rate hikes to try and temper it. But the latest Consumer Price Index report, released in July, showed that inflation ticked back up unexpectedly, increasing by an annual rate of 3.2%. This was the first increase after 12 consecutive months of cooling prices.

While it's unclear whether this trend will continue, it's still important to be proactive when it comes to your savings. Right now, regular savings accounts offer an average rate of just 0.42% — which doesn't come close to keeping up with inflation. So, if you're keeping your money in a regular savings account, you're losing money. 

Luckily, high-yield savings account rates are currently much higher than they've been in recent years, and there are a number of high-yield savings accounts that offer rates well above inflation. By moving your savings to one of these accounts, you'll be in a better position financially — now and over the long term.

Find out what interest rate you could be earning on your savings right now.

6 high-yield savings accounts that are beating inflation

If you're looking for a savings account rate that outpaces inflation, consider the following accounts:

UFB Direct: 5.25% APY

The UFB Direct Premier Savings account offers a 5.25% APY as of August 22, 2023 — which well outpaces the rate of inflation. And, there are no minimum deposit requirements or maintenance fees to contend with, either. 

UFB's high-yield account also comes with a number of other benefits, like an ATM card, access to mobile check deposit and other online banking tools, making it a great option for just about any saver. 

Popular Direct: 5.20% APY

The Popular Direct Select Savings account offers a very high APY of 5.20% on the money in your savings, making this account a great option for earning returns that outpace inflation. And, unlike some other high-yield savings accounts, you don't have to meet any high minimum deposit requirements to earn that rate. If you have $100 to cover the minimum opening deposit, you'll start earning that rate without any monthly service fees.

However, there is one potential fee to be aware of: an early account closure fee. If you close your account within 180 days of opening it, you could be charged a $25 fee. 

CIT Bank: 5.05% APY

The CIT Bank Platinum Savings account offers up to a 5.05% APY on your money — which is a great rate of return on your savings. That's over 10x what you would earn with a regular savings account — and nearly 1% more than what you're losing with inflation.

However, there are some caveats. While it's possible to earn an interest rate above 5% with this account, you'll have to deposit $5,000 or more to earn it. Otherwise, you'll earn a rate of just 0.25%, which is even lower than the average regular savings account APY. But if you have enough cash for the minimum deposit, this account rewards you with very high returns — and there are no fees, either.

Tab Bank: 5.02% APY

Tab Bank's high-yield savings account currently offers an APY of 5.02% — over 11x the national average and well above the inflation rate right now. And, there are no minimum balance requirements or monthly maintenance fees to contend with, either. You'll earn the same high APY whether your savings has $10 or $10,000 deposited into it.

The only potential downsides to this account is that there are a couple of fees tacked onto certain features. You'll be charged $5 if you want paper statements, for example, and outgoing wire transfers cost $30. There also may be fees for returned checks, stop payments or other features, too. 

Bread Savings: 5.00% APY

With Bread Savings' high-yield savings account, you can earn an APY of up to 5.00% on the money deposited into your account. And, you'll do so without any hidden or monthly maintenance fees, either. You do have to meet the minimum deposit requirements to earn that rate — but at just $100, it's easy to do.

There are a few occasions when you would be charged a fee for this account, though. Bread Savings charges a fee of $25 per outgoing wire transfer, $15 per official check request and $5 per paper statement request. 

SoFi: 4.50% APY

With SoFi's combination high-yield checking and savings account, you can earn up to a 4.50% APY on the money you deposit in the savings portion of the account. And, this account also rewards you for keeping money in your checking with an APY of 0.50% on the balance in your checking account. There are no minimum deposit requirements or maintenance fees, either.

In order to earn the highest rate on your savings, you'll need to set up direct deposit. Otherwise, the rate of return is just 1.20% on your savings. That's still higher than the average 0.42% APY you'd earn with a regular savings account, but isn't high enough to outpace inflation. 

Don't miss out. Compare more of today's top savings accounts here.

The bottom line

If you aren't earning an APY on your savings that's higher than the rate of inflation, you need to make a change. Savings account rates are higher on average than they have been in a very long time — and there are plenty of good options to choose from, many of which come with low or no fees or deposit requirements. By doing your research and choosing an account that fits your short- and long-term goals, you'll set yourself up for financial success now and in the future. 

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