Expect savings and money market account yields to slide lower this year, but they still should outpace inflation, according to the latest forecast from Bankrate chief financial analyst Greg McBride.

McBride believes savings and money market yields will be 4.45 percent annual percentage yield (APY) for top-yielding nationally available accounts at the end of 2024 – 90 basis points lower than at the end of 2023.

Meanwhile, the national average yield is projected to be 0.3 percent APY for savings accounts and 0.35 percent APY for money market accounts by the end of 2024.

McBride says to expect two 25-basis point rate cuts from the Federal Reserve in 2024. But if inflation stays lower as expected, it will be another banner year for savers, McBride says.

“Any periods where yields were outpacing inflation tend to be pretty short-lived,” McBride says.

“As interest rates slip a little bit I think there’s a natural inclination to think that the situation is deteriorating for savers. But in reality, it’s still going to be a very good year and if inflation were to fall faster than deposit yields it would actually be an even better year.”

Key takeaways

  • The national average rate for savings accounts will be 0.3 percent by the end of 2024, McBride forecasts, while predicting an average of 0.35 percent for money market accounts.
  • At the end of 2024, the top-yielding nationally available money market account and savings account are projected to be at 4.45 percent APY.
  • Top savings and money market account yields will outpace inflation again in 2024. But if you’re in an account that’s not earning a competitive yield, you won’t be taking advantage of this rate environment.

What happened to savings account and money market account rates in 2023

Four of the Fed’s 11 rate increases in the current rate increase cycle occurred in 2023. These rate increases accounted for only 100 basis points of the 525 basis points of rate increases since March 2022.

Rate increases and inflation coming down were a win for savers

The difference between 2022, which featured some large and frequent rate increases, and 2023 for savers was inflation. In 2023, inflation came down to levels closer to normal – marking a time when top savings yields were outpacing inflation. Top money market yields were also outpacing inflation.

Since March 2023, top savings yields have been outpacing inflation. This is very different from June 2022, when inflation was at 9.1 percent and the top savings yield was only 1.61 percent APY at that time.

Next steps for consumers

Consumers earning anything near or below the current national average of 0.57 percent APY for savings accounts and 0.46 percent APY for money market accounts should shop around and find a competitive yield – and the account that’s right for you. You should be able to find an account that doesn’t have a minimum opening deposit requirement or a monthly service fee – so these accounts are for most people.

Money market accounts are a type of savings deposit account. Some might have the additional convenience of check-writing privileges, which is an uncommon feature in a savings account.

“If you have that separated into a high yield savings account, it helps reinforce the savings habit because it’s off by itself, and it’s generating a higher level of interest earnings that can help reinforce the good savings habits,” McBride says.