How to Beat the 2025 National Savings Rate — Without the Risk

Saving money has always been important—but in 2025, it’s even more critical. 

The national savings rate is currently around 0.42 percent, which likely isn’t enough to keep up with inflation. If your savings are stuck at earning average rates, your money could actually lose value over time.

The good news? Beating the national savings rate doesn’t mean you have to take big risks. With a few smart moves, you can explore safe, low-risk strategies that may help your money grow faster.

Read on for simple ways to earn more on your savings without putting your goals at risk.

📌 Also Read: How to Build an Emergency Fund (Step-by-step Guide)

What the National Savings Rate Means for You

It’s hard to know if your savings are truly growing unless you have something to compare them to. That’s where the national savings rate comes in. Before exploring better ways to grow your money, it’s helpful to first understand where the average stands — and why aiming higher could make a real difference.

As of May 19, 2025, the Federal Deposit Insurance Corporation (FDIC) reports that the average savings account earns just 0.42 percent.

Here’s a quick look at the latest numbers:

Deposit Product	National Deposit Rate	National Rate Cap*
Savings	0.42 percent	1.17 percent
Interest Checking	0.07 percent	0.82 percent
Money-Market	0.62 percent	1.37 percent

Source: FDIC, National Rates & Rate Caps — May 19, 2025

*The national rate cap is the maximum rate that less-than-well-capitalized banks are allowed to offer. It’s based on the national average plus 75 basis points or 120 percent of a comparable Treasury yield, whichever is higher.

Disclaimer: The national deposit rates and rate caps shown are published by the FDIC and are accurate as of June 2025. Rates are subject to change without notice. Actual rates may vary by institution and product. Always verify current rates directly with the financial institution.

So, why does this matter?

Inflation has recently hovered around 3 percent, which means the prices of goods and services are rising steadily. If your savings are only earning 0.42 percent, you’re not just missing out on growth — your money could actually lose value in real terms. Over time, what you can buy with your savings may shrink, even if the balance looks the same.

There’s another point to consider — interest earned from savings accounts is generally treated as ordinary income under IRS rules. This means it’s taxed at your regular income tax rate, which could further shrink the real return you keep.

When you combine the effects of inflation and taxes, earning just the national average may not be enough to protect the true value of your savings.

Tips to Beat the National Savings Rate in 2025

If you’re looking for ways to help your savings grow without taking on too much risk, here are a few strategies worth considering:

Tip #1 Open a High-Yield Online Savings Account

Online banks typically offer higher savings rates because they have fewer overhead costs. Many are paying around 4.3 to 4.6 percent APY in 2025 which is much better than the national average of 0.42 percent. These accounts are FDIC-insured, and any earnings are taxed as ordinary income based on IRS Publication 550 guidelines.

Quick Take:

✅ Your money stays safe, easily accessible, and continues earning interest.
❌ Rates are variable and could drop if overall interest rates decline.

Tip #2 Ladder Short-Term CDs

A CD ladder helps balance higher rates with cash accessibility. By splitting your savings across three-, six-, and twelve-month CDs, you can lock in today’s higher rates. Some offer around 5 percent while having a portion mature regularly. Like savings accounts, CD interest is taxed as ordinary income.

Quick Take:

✅ Offers predictable returns with staggered access to your funds.
❌ Early withdrawals may come with penalties which could reduce your earnings if you need the money early.

Tip #3 Park Cash in Money-Market Funds

Money-market funds invest in short-term, high-quality securities and are designed to keep your cash stable and liquid. As of mid-2025, many funds are yielding close to 4 percent. While they aren’t FDIC-insured, they’re regulated under SEC rules. Earnings are treated as ordinary income for tax purposes.

Quick Take:

✅ Provides higher yields than a typical savings account while keeping your cash easily accessible.
❌ Although rare, there’s a small risk the fund could lose value if market conditions change.

Tip #4 Buy Short-Term Treasury Bills

Treasury bills (T-Bills) are short-term government securities that generally mature in four to thirteen weeks. As of June 2025, T-Bills were offering yields around 4.24 percent. They’re backed by the U.S. government, and the interest you earn is exempt from state and local taxes, though it’s taxed federally as ordinary income.

Quick Take:

✅Government-backed way to earn steady returns, with potential state tax savings.
❌ Since T-Bills mature quickly, you’ll need to reinvest frequently to maintain steady returns.

Tip #5 Automate Rate Checks with Savings Apps

Managing savings rates manually can be time-consuming. Apps like Empower, Qapital, and You Need a Budget (YNAB) track rates for you, send alerts when better options are available, and even move your money automatically. It’s a simple way to make sure you’re not stuck earning less than you could.

Quick Take:

✅ Helps you stay on top of the best rates without constant effort.
❌ Some apps require paid subscriptions, and linking external accounts might raise privacy concerns.

📝 Disclaimer: The strategies discussed are for informational purposes only and may not be suitable for everyone. All investments and savings products involve risk, and returns are not guaranteed. Interest rates, yields, and terms can change over time. Consider consulting a qualified financial professional before making any financial decisions.

Final Thoughts

Beating the 2025 national savings rate doesn’t mean taking on unnecessary risk. Options like high-yield savings accounts, CD ladders, money-market funds, short-term Treasury bills, and savings apps could help your money work a little harder while keeping it relatively accessible and protected.

It’s generally a good idea to review your accounts regularly, especially since interest rates can change. Exploring these low-risk strategies might give you more flexibility and potential growth without stepping too far outside your comfort zone.

If you’re interested in learning more about managing your cash or exploring other low-risk strategies, you can check out our other guides on savings and investing basics.

📌 Want to learn more? Check out our other articles on saving, investing, and financial planning:

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The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

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