How to Earn More Interest: Strategies for Maximizing Returns

Keeping your money in a place that earns interest can help grow your savings. But some accounts pay more interest than others.

If you're ready to take charge of your savings, we cover five ways to increase your interest earnings.

1. Search online bank for a high-yield savings account or money market account

According to the FDIC, the national average rate interest rate on savings accounts typically falls below 1%. However, several financial institutions pay much more than the national rate.

Jerel Butler, CFP® professional and financial planner at Zenith Wealth Partners suggests looking at online financial institutions for competitive interest rates on savings accounts.

"It's a little bit tricky with inflation going on," Butler notes. "The best savings option for a typical savings account is an online savings account."

The best high-yield savings accounts for maximum interest pay significantly higher than average savings rates, with the most competitive options paying 6.17% APY.

If you're interested in exploring other options, the best money market accounts also offer higher interest rates than traditional savings accounts. A money market account is similar to a regular savings account, but it may have a tiered interest rate system or more account accessibility through the form of a debit card, ATM card, or paper checks.

2. Ask your bank for an increase in your savings rate

If savings account interest rates are rising at other banks, Maggie Gomez, CFP® professional and owner of Money with Maggie, suggests asking your bank for an increase in the current rate you receive. 

Gomez explains some financial institutions won't immediately deliver a higher rate unless consumers get proactive. "Later, to be more competitive, they'll increase their rates more publicly, but I think it'll be really slow," Gomez adds.

The Federal Reserve's decisions impact savings account interest rates. When the Fed raises the federal funds rate, savings account rates go up, too. If the Fed cuts rates, savings account rates start to drop.

Savings account interest rates have remained competitive in 2024 because the Fed raised the federal funds rate several times throughout 2023. However, the savings rate forecast shows that savings account rates will likely go down sometime in 2024.

3. Consider switching banks if the rate is worth it

Butler says you should also take the time to explore other financial institutions and compare different savings accounts. (We keep a running list of the best banks.)

"This is a great chance to take advantage of the rising interest rate market, and you may be able to take advantage of a welcome bonus at another bank," adds Butler. "A lot of banks — as a result of the higher interest rates — are running special promotions, too."

If you find a specific account that provides more compelling offers than your current bank, you might consider switching institutions. 

4. Buy savings bonds

Savings bonds are federally issued debt securities. Lindsey Bell, chief markets and money strategist for Ally, says federally issued bonds are a safe investment option, although there are a couple of things to keep in mind. 

"There's a limit on what you can invest in those. They are also probably a little more volatile than a CD or savings account, so you have to take that into account," explains Bell. 

5. Build a CD ladder with short-term CDs if you find a competitive rate

Butler says building a CD ladder might be ideal if you find a competitive rate and are generally risk-averse. However, if you're not risk-averse, Butler adds there are more options you should consider first.

CD ladders offer a way to take advantage of the best CD rates. Instead of depositing all your money into a single CD and locking your deposits for a set time, you'll split your savings into a mix of term lengths.

Earning interest on money FAQs