As the Best Savings and CD Rates Rise, Experts Share Advice for Holiday Saving and Spending This Year

Photo to accompany a story about the best CD and savings rates for week of Nov. 28, 2022
We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

The best CD and savings rates are still on the rise, as experts keep their eyes on a few different factors that could impact your wallet over the next several months.  

For one, the Federal Reserve’s final 2022 Federal Open Market Committee meeting is fast approaching. After four consecutive rate hikes of 75 basis points, some are predicting a smaller 0.50% increase in December. That’s largely thanks to the latest Consumer Price Index, which showed inflation finally starting to slow. 

But one thing is clear: until the Fed fully shifts directions and begins lowering interest rates, experts say savings and CDs will keep getting better for savers. 

For Americans balancing mounting debts, still-high prices, and upcoming holiday spending, these boosted savings balances are one positive result of higher interest rates. 

Here are the best savings and CD rates this week, and expert advice for balancing savings and spending through the rest of the year.  

How NextAdvisor Analyzes CD and Savings Rates

We compare three different averages in our average CD and savings rate analysis. First, we review national deposit rates from the Federal Deposit Insurance Corporation (FDIC) and Bankrate’s national index of deposit accounts based on a weekly survey (like NextAdvisor, Bankrate is owned by Red Ventures). We also calculate the current average rate of each bank on our list of best CD rates and best savings rates — you can find more about how we choose the banks included in our lists on those pages.

The differences between national average savings rates and NextAdvisor’s analysis of interest rates is largely due to the much higher APYs that online banks pay.

National surveys from the FDIC and Bankrate include many different types of financial institutions, including large national banks that charge as little as 0.01% APY. Our lists, on the other hand, is made up of online or hybrid banks with fewer overhead costs, which allows them to pass on savings in the form of interest to customers.

What Are the Best Savings Rates This Week? 

Savings rates went up again this week, but not for many banks. 

Bankrate’s national survey on savings rates increased slightly this week, from 0.18% to 0.19%. The FDIC’s national monthly index also increased from 0.21% to 0.24%. These national averages both include traditional savings accounts, which usually have lower interest rates than high-yield savings accounts

Even though fewer banks increased savings rates this week, the average moved from 3.12% up to 3.18%. Here are a few of the best high-yield savings account rates this week:

What Are the Best CD Rates This Week? 

CD rates are also still going up, but slowly.

Among the banks on Bankrate’s weekly national rate survey, one-year CDs increased from 1.16% to 1.20%, while five-year CDs went from 1.05% to 1.07%. And even though three-year CDs dropped to 1.00% last week, they too went back up this week, to 1.02%. 

Average CD rates according to the FDIC’s national monthly index increased for all CD terms. One- and three-year CDs both rose to 0.90% (from 0.71% and 0.77%, respectively), while five-year CDs went from 0.83% to 0.98%. 

However, CD rates we track at NextAdvisor were pretty stagnant this week. Average one-, three- and five-year CDs remained the same at 4.14%, 3.78%, and 4.05%. 

Here are the best CD rates by bank and term this week:

1-Year 

  • CFG Bank: 4.65% APY
  • Bread Savings: 4.50% APY
  • Live Oak Bank: 4.50% APY

3-Year 

  • CFG Bank: 4.60% APY 
  • Bread Savings: 4.50% APY 
  • Synchrony Bank: 4.30% APY 

5-Year 

  • Bread Savings: 4.75% APY 
  • CFG Bank: 4.60% APY 
  • Sallie Mae: 4.55% APY 

Make Saving a Priority

If elevated prices and job market volatility aren’t already challenging your savings balance, increased end-of-year spending can make saving even harder. 

“It’s natural right now to be looking at what’s coming in,” says Dan Slagle, CFP and founder of Fyooz Financial Planning, a financial planning firm in Virtual, Minnesota. 

For some, that means revisiting your overall financial situation after a layoff and tapping into your emergency fund to recreate paychecks, he adds.

But it’s also important to think about what’s going out of your wallet.  

“Make a budget before you go out,” says Kerry O’Brien, CFP and founder of BeingFIT Financial. “Be okay with it being less than it has in the past.”

Whether you’re facing financial uncertainty or not, you can benefit from taking stock of your finances now.

“Given the environment that we’re in, I would love for people to be conscious of what they’re spending,” says Slagle. “Making sure it reflects their values and who they are and who their household is.” 

One way to ensure that you’re setting money aside is with recurring transfers to a high-yield savings account. You may use the savings toward a sinking fund or to inch closer to your emergency fund goals over the holidays. 

Planning for the Year Ahead

If you’re preparing for a big financial move next year, like buying a home or going back to school, now’s the time to think about where you’ll keep the money you save toward that goal. Still-rising interest rates can help you kickstart earning interest before the year ends.

Knowing exactly what you want to use the money for can also help you decide on the right account type. For short-term goals, a high-yield savings account may be better than a CD. “Any expense within a one-year timeframe, I would advise that people consider keeping that in a high-yield savings account where they can quickly access it,” says Slagle. 

A high-yield savings account, which you can contribute more to over time, is also good if you don’t already have the full amount saved.

But CD ladders can be another good option to help you benefit from the slightly higher rates of CDs while still maintaining flexibility. The ladder approach gives you access to a portion of your money each time a CD matures. 

For example, if you spread $500 across three CDs with three-, six-, and nine-month terms, you’ll have access to a third of your savings every three months. If you don’t need to use the money when it matures, you may roll the funds into a new CD or savings account. 

But experts say it’s best to stick to short-term CDs as rates rise, even if you’re building a CD ladder. Long CD terms may have higher rates right now, but they require a much longer time commitment and you could miss out on higher rates to come. 

“I don’t ever encourage people to get in a game of chasing the highest rates because I think that can be detrimental to the long-term investment behavior,” says Slagle. 

Savings and CD Rate Frequently Asked Questions

Is it better to put money in a CD or savings account?

It depends on your goals. If you don’t want to touch the money, a CD can be a good tool to practice discipline, since you’ll pay a fee to withdraw before the CD reaches maturity. But if there’s a chance you’ll need the money, it’s best to keep it in high-yield savings account for liquidity.

What is the main drawback of a CD over a savings account?

CDs don’t offer much liquidity compared to a savings account. For example, if you need to make emergency car repairs and your money is stashed in a CD, you won’t be able to access it without paying an early withdrawal penalty, which is usually equal to a few months of interest.

What is considered a good savings account rate?

Right now, there are a few high yield savings accounts with interest rates over 3.50%. The average among banks we track is currently 3.18%.