This Simple Move Could Save You Hundreds in 2024

For many people, the start of a new year inspires them to set big financial goals. And one of yours might be to boost your savings in 2024.

You could do so by cutting back on spending (think no more weekly takeout orders or Friday night restaurant dinners with friends) or by boosting your income with a second job (bye bye, downtime). But there may be a much easier way to meet your goal if it involves saving more.

Take advantage of today's higher interest rates

The Federal Reserve has implemented a series of interest rate hikes to cool inflation. And while that's resulted in higher costs for people needing loans and credit card borrowers, it's had the positive effect of more generous interest rates for savers. Taking advantage of those rates could put a nice amount of money back in your pocket in 2023.

Let's say you have a checking account balance of $10,000, but you really don't need more than $2,000 on hand for near-term bills. These days, top savings accounts are paying 4.5% to upward of 5% interest.

If you move $8,000 out of a checking account and into a savings account paying 4.5%, you could give your savings a boost. That move alone could make you $360 richer by the end of 2023 -- without having to give up anything or sacrifice precious free time.

Of course, this assumes that rates stay where they are throughout 2024. That may not happen, especially because the Federal Reserve is expected to cut rates at some point in 2024 if inflation cools further. But even if you take that $360 in interest and divide it in half, that's still a lot of money to get your hands on without having to do anything other than transfer over some funds.

It could pay to shop around for a new bank

If you currently have a pile of money in a savings account but aren't getting anywhere close to 4.5%, then it may be time for a switch. And one thing you may want to do is move from a physical bank account to an online bank.

Online banks are often able to offer more competitive interest rates on savings because they don't have the same overhead costs as physical banks. So it pays to look around and see what rates are available.

Also, the nice thing about online savings accounts is that many do not have a minimum deposit requirement. You may be more likely to face that requirement when you're opening a certificate of deposit (CD) or a money market account, but with a savings account, there's less pressure. There's also less pressure to keep your money in the bank should you decide you need it.

There are several steps you can take to end 2024 several hundred dollars richer. But choosing the right savings account is perhaps your least painless and most effective means of achieving that goal.