Do you see that in the distance? 2025 is coming our way. You probably have a to-do list as long as your arm, so forgive me for adding to it – but now is a great time to evaluate your savings account and the money in it.

Here are four ways to make sure your savings account is ready for 2025.

1. Get the best rate

This is really essential, because we are in a period of falling rates. The Federal Reserve, the U.S. central bank, sets the nation’s monetary policy and influences consumption rates by raising or lowering the federal funds rate, which is its benchmark interest rate. We saw reductions in September and November, and another could be on the horizon this month.

The Fed raised this rate several times between 2022 and 2023 to try to control high inflation, and it appears to have worked. We have gone from peak inflation of 9.1% in June 2022 to 2.6% according to the latest CPI report (for October 2024). One of the positive side effects of higher inflation has been rising interest rates on bank deposit accounts – but all good things must come to an end.

Our picks for the best high-yield savings accounts of 2024

American Express® High Yield Savings Member of the FDIC. APY 3.90% Pricing information Annual percentage yield of 3.90% as of December 8, 2024. Conditions apply. Member of the FDIC.	3.90% Pricing information Annual percentage yield of 3.90% as of December 8, 2024. Conditions apply.	$0
Capital One 360 ​​Performance Savings Member of the FDIC. APY 3.80% Pricing information Check the Capital One website for the most up-to-date pricing. The Advertised Annual Percentage Yield (APY) is variable and accurate as of December 6, 2024. Rates are subject to change at any time before or after account opening. Member of the FDIC.	3.80% Pricing information Check the Capital One website for the most up-to-date pricing. The Advertised Annual Percentage Yield (APY) is variable and accurate as of December 6, 2024. Rates are subject to change at any time before or after account opening.	$0
Western Alliance Bank High Yield Savings Premier Member of the FDIC. APY 4.46% Pricing information Annual Percentage Yield (APY) is accurate as of November 7, 2024 and is subject to change at the Bank’s discretion. Refer to the product website for the latest APY rate. The minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. earn $500 to open, $0.01 for maximum APY Member of the FDIC.	4.46% Pricing information Annual Percentage Yield (APY) is accurate as of November 7, 2024 and is subject to change at the Bank’s discretion. Refer to the product website for the latest APY rate. The 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 maximum APY

That’s not to say that savings accounts aren’t still worth it, as you’ll still need money saved for emergencies and short-term goals. But now is a crucial time to make sure you get the best rate.

Many of our favorite High Yield Savings Accounts (HYSAs) still pay around 4% APY, so click here to explore your account options if your savings only earned you a few cents (or less) in 2024.

2. Reevaluate your emergency fund

Another (less happy) side effect of this higher inflation was rising prices, which remained high. As much as we wish that falling inflation would translate into falling prices, that is not the case: it simply means that the rate of increase has slowed. So if you’re now paying more for your groceries and utility bills, there’s a good chance your monthly expenses have increased.

So, before 2025, look at your bank and credit card statements, compare your regular spending to your budget, and see where you’re paying the most – 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 lucky. Do yourself a favor before 2025 and make sure you have enough money to cover three to six months of expenses at this new higher monthly number. Otherwise, prioritize freeing up more money 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 savings (that’s a good problem!). If your assessment of your emergency fund and short-term savings needs shows that you have more cash than you currently need, you could make more money investing.

The S&P 500 has returned an average of 10% per year to investors over the past few decades. If you have cash that you don’t plan to use for five or ten years (or more – retirement, perhaps?), consider investing it.

We’ve put together a list of the best stock brokers, and they offer low fees, excellent mobile and desktop investing platforms, and in-depth research to ensure your money will continue to grow. Do you want to invest for your retirement? Check out our favorite individual retirement account (IRA) brokers here.

4. Set savings goals

I bet you thought this list was just going to be boring math and disaster planning. You were wrong! I’m a big believer in saving for specific goals, including fun goals, like the next vacation, a home improvement project, or even just buying a new TV. Having goals for your money helps you have the headroom you need to save.

My own high-yield savings account offers buckets – separate sub-accounts within the main account. This makes it very easy to set goals for different expenses and direct money toward them. I recommend choosing a HYSA with savings compartments if that suits you.

Ready or not, here’s to 2025. For the best chance of financial comfort and success in the new year, take the time to go through this list with your own savings account – Happy New Year!