Is your savings account keeping up with inflation? Here's how to tell.

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Your savings account balance might be growing, but that doesn't necessarily mean it's gaining value. As inflation drives up the cost of everyday goods and services, it also chips away at your purchasing power.

Here's how inflation affects your savings — and how much interest you need to earn to keep up.

Inflation is the measure of how much prices increase over time, including the cost of basic necessities such as rent, utilities, groceries, and gas. As prices for goods and services rise, each dollar you've saved buys less than it did before.

That means even if your savings account balance stays the same, the actual value of your money is declining.

For example, let's say the inflation rate is 2% (which is considered a healthy rate of growth for the economy) and your savings account earns 1%. In this case, you're actually losing 1% of your wealth every year.

On the other hand, if the inflation rate is 2% and your savings account earns 4%, your savings are growing faster than inflation and your real return is 2%.

The interest rate your savings account needs to beat: 3.7%

Here's the bad news: We're currently experiencing a period of high inflation. As of September 2026, the inflation rate is 3.7% annually, largely thanks to rising energy prices.

So, if you want to simply preserve your purchasing power, you'll need to earn 3.7% APY on your savings. If you want to grow your wealth, you'll need to find an account that earns even more.

The good news? There are several banks and credit unions that offer high-yield savings options that beat inflation.

You're not likely to beat inflation if you deposit your savings at a major bank. According to the Federal Reserve, the national average rate on savings accounts is currently just 0.37%.

However, many community banks, credit unions, and online banks offer higher rates. Here are a few specific account types that are most likely to pay interest rates that beat inflation.

If your savings account needs an interest-rate upgrade, shop around for a high-yield savings account. HYSAs work just like other savings accounts, but they earn higher interest rates.

These accounts are primarily offered by online banks , which can afford to pay higher rates than traditional banks since they don't have the overhead costs involved with operating physical branch locations. Today, the best high-yield savings accounts pay around 4% APY.

Here's a look at some accounts that currently beat inflation:

For a limited time, earn a 0.4% APY Rate Boost totaling 4.3% APY by opening a new Bask Interest Savings Account and a Bask Interest Checking Account between October 1, 2026, and December 31, 2026 and completing the qualifying requirements during the reward period.

Accounts enrolled in the Platinum Savings earn up to 4.25% APY on balances of $5,000 or more. Enter promo code BOOST50 to receive a 0.50% APY bonus for six months from account opening.

Open a new SoFi Checking and Savings account by 12/31/26, set up eligible direct deposit within 60 days, and maintain direct deposit for six months.

Must deposit at least $250 per month into your LevelUp account to earn 4.2%. If you miss a month, you'll earn the standard rate of 3% APY.

Minimum deposit of $1,000 is required. New customers only (current customers earn 3.4%).

Earn 4% APY as a Chime Prime member or 3% APY as a Chime Plus member when you receive a qualifying direct deposit.

For money you don't need access to for at least a few months, try depositing it into a certificate of deposit (CD) account. With CDs, you get above-average rates in exchange for agreeing to leave your money on deposit for a set period of time. Today, the best CD rates currently hover around 4%-4.5% APY.

Just note that if you pull money out of your CD before the maturity date, you'll have to pay an early withdrawal penalty . So, it's important to choose a CD term that matches your savings timeline.

A money market account is a type of savings account that typically pays a higher interest rate than a traditional savings account while still allowing relatively easy access to your money. Many MMAs include check-writing or debit card access, though they may require a higher minimum balance than a standard savings account. Today, the best money market accounts pay up to 3.9% APY.

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