Savings And Money Market Rates Forecast For 2026

Top yields for savings and money market accounts are expected to continue the downward slide in 2026. Still, top savings rates will likely outpace the rate of inflation according to the latest forecast from Bankrate senior industry analyst, Ted Rossman.

The highest rate for nationally available savings and money market accounts will be 3.70% annual percentage yield (APY) at the end of 2026, Rossman predicts. This is down over 1 percentage point (100 basis points) from the top APY these accounts earned in 2025.

Bankrate’s savings and money market account 2026 forecast and industry insights

Savings account and money market account APYs have been decreasing in recent years, and that trend is expected to continue in 2026. Lower APYs mean you’ll earn less interest on your nest egg as you save toward short- and long-term goals, like an emergency fund or a down payment on a house or vehicle.

A big driver of savings account interest rates is the federal funds rate. Federal Reserve officials sometimes raise this benchmark rate to help tame inflation, or they may lower it to prop up a weakening jobs market. They decreased the rate by a total of 175 basis points in 2024 and 2025 — and competitive banks have responded by lowering their deposit account rates.

Citing recent data that shows decreasing inflation and increasing unemployment — and the upcoming nomination of a new Fed chair by President Donald Trump, who favors steep rate cuts — Rossman predicts three quarter-point cuts to the federal funds rate in 2026. “That combination, plus a new Fed Chair predisposed to lower rates because the President wants them, could add up to more cuts, not less,” he says.

While more cuts to the federal funds rate will likely spur lower savings account yields, Rossman’s prediction of a top savings account APY of 3.70% in 2026 means your money in a high-yield account could continue to outpace inflation for now — so you’re not losing purchasing power as you save for your goals.

Bankrate has been tracking interest rates since 1976 and making rate forecasts for well over a decade. Rates could fluctuate based on future changes in inflation or unemployment — and banks sometimes decide to change their APYs for their own reasons, such as the desire to draw in more customers.

What happened to savings account and money market account rates in 2025?

Average savings and money market account rates ended 2025 in a similar enough place to where they started last January, although top savings account rates are down around 60 basis points from what they were a year ago.

Rossman predicts 2026 national averages will be similar to those of 2025, although he expects a decrease in top savings and money market account rates of around 65 basis points in the year ahead. “The Fed’s September, October and December rate cuts haven’t yet trimmed that top yield,” he says.

Savings and money market account APYs could experience more residual effects from the recent Fed rate cuts, and they could decrease even further if the Fed lowers rates again in 2026. Another key factor that could impact how banks set their APYs is how competitive they want to be compared to other banks.

What consumers need to know about savings and money market account interest rates in 2026

To ensure you’re getting a competitive yield in a falling-rate environment, compare your account’s APY with that of other banks. Bankrate’s lists of top money market account rates and highest savings account rates can be resources for this.

APYs often vary widely among financial institutions. “Competition for deposits underscores the importance of shopping around for the best rates — often offered by credit unions, community banks and online banks hungry for deposits,” Rossman says.

Credit unions are not-for-profit organizations, so they often share profits with their members, or shareholders, in the form of higher rates. Online-only banks don’t pay to maintain branches, so they may pass along that savings in the form of higher APYs — especially if they’re intent on drawing customers away from well-established brick-and-mortar banks. High rates can be what it takes to attract brick-and-mortar customers, many of whom stick with the same bank accounts for decades.

Ultimately, you could be missing out on hundreds in interest if you’re keeping your money in a low-earning account. Here’s how much you could earn in various types of accounts:

Inflation soared in recent years — and although it’s come down significantly, many are still struggling to afford basic costs of living. This can make it challenging to put any savings into the bank after the bills are paid. However, even setting a small amount aside each month can add up, especially for emergency savings. That’s why it’s important to find a savings account that earns a high rate. Otherwise, you are missing out on the extra interest earnings.

When rates are trending down, one way you can help preserve a higher APY is by putting some money into a certificate of deposit (CD). These accounts lock in your funds for a set amount of time, with a guaranteed rate that won’t change, even if going rates continue to drop. The best CD rates are also outpacing inflation at the moment, and are on par with the best savings accounts.

On word of caution, though: Don’t lock money in a CD that you might need in the meantime for living expenses, emergencies or other near-term purposes. If you take out the money before the CD matures, the bank will likely charge you an early withdrawal penalty that could eat into your interest and potentially even what you originally put in.

And remember that beyond the yield, a savings account or CD is only as valuable as it is safe. Check that the institution you’re considering is insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) and will protect what you’ve worked hard to save.