Make These 4 Moves With Your Savings Account Before 2025

See that, off in the distance? That's 2025 coming up to meet us. You've probably got a to-do list as long as your arm, so pardon me for adding to it -- but now is a great time to assess your savings account and the cash it contains.

Here are four ways to ensure your savings account is 2025-ready.

1. Get the best rate

This one is really paramount, as we're in a time of falling rates. The Federal Reserve, America's central bank, sets the monetary policy for the country and influences consumer rates by raising or lowering the federal funds rate, which is its benchmark interest rate. We've seen cuts in September and November, and another could be on the horizon this month.

The Fed raised this rate multiple times between 2022 and 2023 in an attempt to bring high inflation under control, and it seems to have worked. We went from a peak of 9.1% inflation in June 2022 to 2.6% as of the most recent CPI report (for October 2024). One positive side effect of higher inflation was the resulting higher rates on deposit bank accounts -- but all good things must end.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of December 27, 2024. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of December 27, 2024. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

This isn't to say that savings accounts aren't still worth it now, because you'll always need money in savings for emergencies and shorter-term goals. But now is a crucial time to ensure you're getting the best rate.

Many of our favorite high-yield savings accounts (HYSAs) are still paying around 4% APY, so click here to explore your account options if your savings only earned you pennies (or less) in 2024.

2. Reassess your emergency fund

Another (less happy) side effect of that higher inflation was increased prices that have remained high. As much as we might wish that lower inflation means lower prices, it doesn't -- it simply means the rate of increases has slowed. So if you're paying more for groceries and utility bills now, the odds are good that your monthly expenses have increased.

So ahead of 2025, sit down with your bank and credit card statements and compare your regular expenses to your budget and see where you're paying more -- and by how much. You can use these updated numbers to determine if your emergency fund is still sufficient.

If you have an emergency fund, you are indeed fortunate. Do yourself a favor before 2025 and ensure you have enough in it to cover three to six months' worth of expenses at that new higher monthly number. If not, prioritize freeing up more cash to add to your emergency fund to get you there in 2025 -- you won't regret it.

3. Make sure you're not overfunded

Maybe you have the opposite problem -- too much in savings (that's a good problem to have!). If your assessment of your emergency fund and any near-term savings needs shows you have more cash than you need right now, you could earn more money on it by investing.

The S&P 500 has returned an average of 10% annually to investors over the last several decades. If you have cash you're not planning to use for five or 10 years (or longer -- retirement, perhaps?), consider investing it.

We've curated a list of the best stock brokers, and they offer low fees, great mobile and desktop investing platforms, and in-depth research to ensure your money will keep growing. Want to invest for retirement? Check out our favorite individual retirement account (IRA) brokers here.

4. Set some savings goals

I bet you thought this list was going to be just boring math and planning for catastrophes. You were wrong! I'm a big believer in saving for specific goals, and that includes fun ones, like an upcoming vacation, a home remodeling project, or even just buying a new TV. Having goals for your money helps get you in the proper headspace to save.

My own high-yield savings account offers buckets -- separate sub-accounts within the main account. This makes it super easy to set goals for different expenses and funnel money to them. I recommend picking a HYSA with savings buckets if this sounds good to you.

Ready or not, here comes 2025. For the best chance of financial comfort and success in the new year, take some time and run through this list with your own savings account -- Happy New Year!