What is the $27.39 rule for savers?
Saving money while keeping debt levels low can often feel difficult. But the economic terrain of recent years has made it feel impossible for many Americans. Inflation surged in 2022 to its highest level in decades. The Federal Reserve then raised rates to its highest level in more than two decades, and mortgage interest rates responded by surging to their highest point since 2000. In this climate, saving often felt secondary, if it was achievable at all.
But the economy is changing again. Inflation is now closing in on the Fed's target 2% goal, and unemployment is on the decline again. The central bank, meanwhile, issued three rate cuts in the final four months of 2025 and could issue additional ones as soon as this spring. In this improved climate, saving can again become a focus for many. And one of the better ways to accomplish this goal is by following the $27.39 (or $27.40) rule.
But what is this guidance, specifically? And what will it accomplish? Perhaps most importantly, how can it be followed in an effective way now? Those are the questions we'll detail the answers to below.
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What is the $27.39 rule for savers?
The $27.39 rule refers to a daily savings approach in which you will save this amount of money each day of the year to build a cumulative total of $10,000 in savings after a full year. The math is simple as $27.39 multiplied by 365 days results in $9,997.35 saved after 12 months. $27.40 multiplied by the same 365 days gives you a few dollars more for a total of $10,001.00. And while saving that much money each day can feel daunting, it can feel more manageable if viewed as a weekly sum of $191.80 ($191.80 multiplied by 52 weeks will total $,9973.60, just under the $10,000 goal).
This money, however, shouldn't be kept in a traditional savings account. Those accounts come with an average interest rate under 0.40% right now, so they'll barely help you achieve your goal. There are, however, multiple other accounts that can help thanks to the higher rates they come with and the compound interest the account will enjoy with consistent savings each day.
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How to save more money right now
There are three primary ways for savers to boost their money now, each with interest rates exponentially higher than what traditional savings accounts are offering. High-yield savings accounts have rates of 4% or higher right now, but otherwise function just like traditional savings accounts. That said, the best high-yield savings accounts are often found online versus your local banking branch. If you're comfortable banking online, however, this could be one of the easier ways to grow your money, especially if you can commit to making daily deposits.
Money market accounts are also viable as they come with average interest rates similar to the best high-yield savings accounts, in addition to other unique features like check-writing. That said, both high-yield savings and money market accounts have variable interest rates that will change over time, likely downward if additional interest rate cuts are issued later in 2026.
To protect against that possibility, savers should also explore their certificate of deposit (CD) account alternatives. These have rates around 4%, too, but they're fixed, meaning that they'll remain the same even in the face of a cooling interest rate environment. At the same time, you won't be able to make deposits into a CD as you would with the other accounts, and withdrawing your funds prematurely will result in a costly fee, so approach your CD options carefully before locking your money away.
The bottom line
The $27.39 rule can help savers meet an annual savings goal of $10,000, should they follow it precisely and consistently through a full year. But they can more easily achieve that goal by utilizing a high-yield savings, money market or even CD account, thanks to the high interest rates each comes with currently. Consider your account options carefully, then, and consider the benefit of splitting funds between two account types to more effectively (and rapidly) achieve your savings goals this year.
