Beat inflation with Bankrate's guide to generating higher interest

High yields don't necessarily require high risk. Bankrate examines proven ways to grow your savings without losing sleep

Guido Mieth / Getty Images

Leaving money in a standard bank account has always felt prudent — safe, accessible, reassuringly dull. But in 2026, that caution comes with a quiet cost. The gap between what a typical savings account pays and what the best alternatives offer has rarely been wider, and the spread is large enough to matter in real terms.

The average savings account in the U.S. pays an annual percentage yield (APY) of just 0.39%, according to the FDIC. Meanwhile, the top high-yield savings accounts are offering more than 4% APY, which comfortably outpaces the current inflation rate of 2.4%. That means savers who stick with a default account aren't just leaving money on the table. They're effectively losing ground to inflation every month.

The good news is that the alternatives are not exotic. They do not require a brokerage account, a financial advisor, or a high risk tolerance. The seven options Bankrate rounded up range from simple account switches to slightly more structured vehicles such as certificates of deposit and government bonds. Most are federally insured. All carry meaningfully lower risk than equities.

The right choice depends on a few honest questions: How quickly might you need the money? Are you willing to lock funds away for a set period in exchange for a better rate? Can you meet the conditions some accounts require to unlock their headline yields?

For emergency funds, flexibility matters more than maximizing yield. For savings earmarked for a goal several years out, locking in a competitive rate makes more sense. And for savers who already have a cushion and are carrying high-interest debt, paying that down first will almost always beat any return available in a low-risk account.

None of these options will make anyone rich. That is rather the point. In a year when rates on cautious, accessible products are running well ahead of inflation, the smartest move for most people is simply to stop leaving money in accounts that pay almost nothing and start choosing ones that pay something meaningful.

1. Switch to a high-yield savings account

Milan Markovic / Getty Images

The single most accessible upgrade for most savers is also the most straightforward: move money from a traditional savings account to a high-yield one. The best high-yield savings accounts earned up to 4.20% APY in January — roughly seven times the national average of 0.61%. On a $5,000 deposit, that difference translates to approximately $180 more in interest earned over a year. Online-only banks are often the best place to look, since they pass on the savings from not maintaining physical branches through higher rates and lower fees.

2. Consider a rewards checking account

SDI Productions / Getty Images

Some checking accounts pay elevated interest rates or cash back on debit card purchases, though the conditions attached can be demanding. Bankrate cites the example of Consumers Credit Union, which offers up to 5% APY on balances up to $10,000 for customers who meet a layered set of monthly requirements, including at least 12 debit or credit card transactions, $500 in direct deposits, and $1,000 in monthly credit card spending. The lesson: read the fine print carefully before assuming the headline rate is easily achievable.

3. Lock in a rate with a certificate of deposit

Patrick T. Fallon / AFP via Getty Images

Certificates of deposit (CDs) offer a useful trade-off: less flexibility in exchange for a guaranteed rate. When you open a CD, you agree to leave the money untouched for a fixed term; withdrawing early triggers a penalty. The top CD rates reached up to 4.20% APY in January, per Bankrate. One structural advantage is rate certainty: If market rates fall after you open a CD, your locked-in rate stays put. A CD ladder, which involves opening several CDs with staggered maturity dates, can help balance yield with periodic access to funds.

4. Take advantage of bank bonuses

Nora Carol Photography / Getty Images

New-customer bonuses are a legitimate, if underused, way to boost savings, a one-time yield boost for opening and funding a new account. Bankrate notes that some banks offer bonuses of $300 or more for depositing a minimum amount, such as $10,000, and maintaining it for roughly three months. A $300 bonus on a $10,000 deposit held for a year is equivalent to a 3% APY return. Larger bonuses of $400 to $500 are available at some institutions, though they typically require higher minimum deposits. The key is reading the terms carefully, as some banks claw back the bonus if the account is closed too soon.

5. Try a money market account

Bibek Raj Giri / NurPhoto via Getty Images

Money market accounts blend features of savings and checking products, paying interest while also offering check-writing privileges and debit card access. The top rates reached up to 4.10% APY in January, according to Bankrate, compared to a national average of just 0.43%. As with high-yield savings accounts, the most competitive rates tend to come from online banks. The drawback is that money market accounts may carry higher minimum balance requirements or fees than a standard savings account, and there is no guarantee the rate will beat what a bank's own savings account offers.

6. Check with your local credit union

Smith Collection / Gado / Getty Images

Credit unions are member-owned, not-for-profit institutions, which means, in theory, they return value to account holders rather than to shareholders. That can translate into lower fees, better account terms, and competitive interest rates, though results vary significantly by institution. Bankrate notes that while some credit unions are open to anyone, others restrict membership by geography or employer. For those without a nearby branch, fully online credit unions are worth exploring.

7. Consider buying government bonds

Angela Weiss / AFP via Getty Images

For savers willing to accept slightly less liquidity, government bonds offer a low-risk path to competitive yields. U.S. Treasury bonds and Series I savings bonds — designed specifically to protect against inflation — are the most relevant options here. According to Bankrate, the composite rate on I bonds issued between November 2024 and April 2025 is 3.11%, combining a fixed rate of 1.20% with an inflation-adjusted component of 1.90%. There's just one risk to keep in mind: If you sell a bond before it matures and market rates have risen since you bought it, you may receive less than you paid, since bond prices move inversely to interest rates.

© Quartz