This Is How Much More You Could Be Earning With the Right Savings Strategy in 2024

Do you still have money languishing in a near-zero interest rate bank account? If so, your savings could be earning serious money. It's time to make your money work harder in 2024.

The past few years of rising interest rates have been bad news for home buyers and auto loan borrowers. But higher interest rates have been good news for savers. The best high-yield savings accounts, money market accounts, and certificates of deposit (CDs) are earning 5.00% APY or higher right now.

Let's compare a few of these savings strategies and see how much they could help you earn on your savings compared to national average bank accounts.

1. Best high-yield savings account (5.14% APY)

According to the FDIC, as of Feb. 23, 2024, the national average rate on a bank savings account was 0.46% APY. Some major national banks are still paying 0.01% APY on their savings accounts. You can do better than that! Currently, the best rate on a high-yield savings account featured on our best high-yield savings accounts list is from the Customers Bank High-Yield Savings Account, offering 5.14% APY.

Here's how much you could earn on your savings in one year by moving your cash to Customers Bank, compared to the national average savings account.

^{** $1,200 is the typical American savings account balance, according to The Ascent's research.}

Why you should choose this savings strategy: Even if you don't have much money in the bank, you deserve to earn yield and watch that money grow. Banks shouldn't be profiting off your deposits while you get nothing in return. The best high-yield savings accounts give you some of the best APYs of any savings product, while also giving you complete flexibility for how to use your cash. For these reasons, high-yield savings accounts can be a better choice than opening a CD.

2. Best money market account (5.30% APY)

Another place to put your savings that's technically different from a savings account is a money market account. Many banks offer money market accounts as another FDIC-insured option to hold your savings and earn interest. Unlike a traditional savings account, money market accounts often allow you to write checks or use a debit card, giving you more convenient access to your cash.

Money market accounts also work differently from savings accounts in another important way: they invest their customers' cash in "the money market" -- short-term, low-risk securities like municipal bonds, U.S. Treasury bills, and CDs. This mix of investments can help money market accounts earn higher yields than a typical savings account. But right now, the best money market accounts on our list were offering APYs that were pretty close to the best high-yield savings accounts.

The FDIC national average money market account rate is 0.66% APY. Let's see how your earnings would improve if you moved your money to Vio Bank, which offers one of the best money market accounts with a 5.30% APY.

Why you should choose this savings strategy: There's not a big difference between how much you can earn with a money market account vs. a high-yield savings account. If you want to be able to occasionally pay bills or make ATM withdrawals directly from your cash savings, then a money market account can offer additional flexibility. But if your savings are currently sitting in a low-yield national average money market account, you should strongly consider switching to a higher-yielding account.

3. Best 1-year CD (5.25% APY)

2024 is fast becoming The Year of the Certificate of Deposit, with rising levels of curiosity from banking customers who are wondering if now is the right time to open a CD. The FDIC national average deposit rate on a 1-year CD is 1.83% APY, while our best 1-year CD is from Bread Financial and is offering 5.25% APY.

Let's see how much you could boost your earnings by stashing your savings with Bread Financial's 1-year CD, compared to the national average.

Why you should choose this savings strategy: The national average CD is paying a much higher APY (1.83%) than the national average savings account or money market account. But it could still be worth switching to a higher-yield CD. The Fed might be cutting interest rates by the end of 2024, which means now could be a good time to lock in a high APY on a CD before interest rates fall. If the Fed cuts interest rates, savings account and money market APYs are likely to go down, too -- but a fixed rate CD will keep its guaranteed rate of interest for the full term of the CD.

Bottom line

No matter how you invest your savings, you deserve a higher yield than 0.01% or the uninspiring national average. Aren't your savings "above average?" Go get a higher-yielding bank account for your cash in 2024.