5 Reasons to Move Your Savings Now — And Where Experts Say to Put It
When inflation is higher than your savings account’s APY, your money loses real value over time, even if you’re earning interest. In other words, while your savings account balance may continue to grow, it isn’t growing fast enough to keep up with rising prices.
According to CNBC, the Consumer Price Index rose to 3.4% year over year in July 2026, meaning any savings account earning less than a 3.4% annual percentage yield (APY) is effectively losing its purchasing power.
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Think of it this way: an item that cost $500 a year ago would now cost about $517 after 3.4% inflation. Now, if that same $500 sat in a savings account earning just, say, 2.3% APY, it would have grown to only $511.50 – leaving you with less buying power than America’s current inflation rate.
This is why many financial experts recommend taking a fresh look at where you keep your cash, and where you should move it for better yields.
High-Yield Savings Accounts
Many traditional savings accounts pay well below today’s most competitive rates, while high-yield savings accounts can offer substantially higher APYs with no monthly fees or minimum balance requirements.
“It’s hard to recommend a better option than a high-yield savings account for savings that you need to be able to access on short notice,” Clearsurance finance expert Melanie Musson told MoneyLion.
Certificates of Deposit (CDs)
If you don’t need immediate access to your cash, CDs let you secure a fixed interest rate for a set term, protecting your earnings if rates decline.
“CDs can offer higher yields than traditional savings accounts, while still providing the safety of a federally insured deposit when held at an FDIC-insured bank or NCUA-insured credit union,” Cassandra Hutchinson of the online marketplace CD Valet said to MoneyLion.
Money Market Accounts
Money markets accounts often pay interest comparable to high-yield savings accounts while also offering features like check-writing privileges or debit card access.
One caveat, per Kevin Shahnazari, CEO of Savvo Technology, is that while money market accounts offer yields similar to high-yield savings accounts, “they generally have a higher average balance in order to gain the higher yield.”
Switching is Easier Than Ever
Opening an online savings account or transferring funds, typically takes just a few days. If your current account is paying well below the inflation rate, making the switch could help preserve more of your purchasing power.
The bottom line: Where you put your savings matters, especially in an era of high inflation. Reviewing your current APY and comparing it with today’s competitive options can help ensure your money keeps pace with inflation instead of quietly falling behind.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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