For much of the last two years, the borrowing climate has been unfavorable. Thanks to decades-high inflation and interest rates meant to tame it, the cost of borrowing, no matter the product used, has surged. Now, interest rates are in the double digits for credit cards and personal loans and mortgage rates are hovering near their highest point since 2000.

But higher interest rates haven’t been fully detrimental, either. They’ve also raised the benefit of saving for many, with rates on high-yield savings and certificates of deposit (CD) accounts exponentially higher than they were in 2020 and 2021, for example. The timing behind opening one (or both) of these accounts, then, is critical to get right. And while you may have missed out on the earnings potential of a high-yield savings account in recent months, it’s still not too late to get started. Below, we’ll break down three reasons why you should still open a high-yield savings account now.

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Why it’s not too late to open a high-yield savings account

Here are three reasons why it’s still not too late to get started with a high-yield savings account:

Interest rates are still high

While rate cut optimism was high at the start of 2024, it’s significantly dampened since, thanks to a series of reports showing inflation still sticky. This has put the prospect of rate cuts on hold, leaving interest rates on high-yield savings accounts elevated in the interim. 

So, it’s not too late to take advantage. You may be able to secure an account with a rate of 5.55% right now, which is exponentially higher than the 0.46% rate the average savings account comes with. But the rates on these accounts are variable, meaning they will change based on market conditions (including any Fed rate activity), so it’s important to act now while you can still earn a substantial return.

Get started with a high-yield savings account online now.

Interest rate cuts look delayed

While a variable interest rate isn’t necessarily an advantage for those looking to earn big returns on their accounts, it’s less of a concern right now thanks to diminished expectations surrounding rate cuts. No one knows for sure (or when) rates will get cut and by how much. 

And considering that inflation rose in the last two months — and that it currently sits more than a full percentage point above the Fed’s target 2% goal — it’s safe to assume that the rate climate will remain relatively stable in the months to come. That’s good news for those who haven’t yet opened high-yield savings accounts but are ready to do so now. 

Your savings could use a boost

If your money is currently being kept in a regular savings account, the average rate is minimal right now, meaning you’re losing money by not making the switch. And with inflation high and borrowing costs elevated alongside it, your savings could likely use a boost to keep pace. And regular savings accounts simply don’t offer that option. 

It makes sense, then, to put your money in an account that can keep pace with inflation or even outpace it. This won’t be a perfect solution, but it can help buffer the negative economic effects felt elsewhere. And it can be done online right now. So don’t wait to get started.

Explore your high-yield savings account options online today.

The bottom line

It’s critical to get the timing right with any financial decision. And while the last two years were ideal times to open CDs and high-yield savings accounts, the window of opportunity remains open. It’s not too late to open a high-yield savings account now because interest rates on these accounts are still high and appear like they will remain high for for foreseeable future. And with everyday living and borrowing costs still high, your savings could use every bit of help possible. As with all financial products and services, however, be sure to weigh the pros and cons of this unique savings account to make sure it can provide the help you need right now.