Five Ways to Beat Inflation with Savings

profile Erin Bruehl  |  September 27, 2022

You can beat inflation by keeping a portion of your money in a high-yield savings account. This allows you to earn interest on your money while still having easy access to it.

Inflation is at the highest it’s been in more than 40 years. In April 2022, inflation increased 8.5 percent compared to 2021. Such a high inflation rate will pave the way for increases in interest rates on credit cards, mortgages, car loans, and other loans.

Prices are going up, but wages aren’t increasing at the same rate. This means you have to make your money work for you as best as possible. If you put your money in a Savings Pod on Current, you’ll earn 4.00% APY (annual percentage yield) on your money.

What Is Inflation?

Inflation is the rate at which the price of products and services increases. When inflation increases, it costs more to buy the same thing than it did in the past.

Inflation can be driven by market factors, such as the price of groceries increasing because of a trucker strike so it’s hard to get food to the market shelves. Prices can also rise due to an uptick in demand while supply stays the same.

The goal is to get a rate of return on investments that is higher than inflation, putting you ahead. Between 2010 and 2020, the average inflation rate per year was below 2%.

5 Ways to Beat Inflation

Today, with the inflation rate being higher than ever before, it’s important to get the most out of your money. We’ve outlined five straightforward ways to beat inflation with savings.

  1. Create an emergency fund. Standard advice is to have enough funds to cover three to six months’ worth of expenses. Make sure you are basing this amount on current prices rather than prices from even last year.

    This will ensure you’re covered if an emergency occurs. This money should always be in an account you can easily and quickly access in an emergency.

  2. Earn a high-yield on your short-term savings . Current Interest was designed with inflation in mind, allowing customers to earn 4.00% APY on up to $6,000 in their Saving Pods.

    With Current Interest, there is no minimum balance, spending, or direct deposit requirement. You simply start earning interest daily on your money when you add funds to your Savings Pods.

  3. Consider the stock market. While you won’t want to put money into the stock market if you might need to access those funds in the short term, consider the stock market for long-term investments. On average, the stock market results in a 9.2% return rate.

    If you’ve never invested in the stock market before, now could be the time to dabble in it. Even if you have a couple hundred dollars to invest, it can familiarize you with how the market works and what to expect.

  4. Limit your purchases. When prices are higher, buying less is often the best defense. This will ensure you have more money to put into your Saving Pods, where it can earn interest.

    It can help to track your expenses on a monthly basis to see if you are spending unnecessarily in some areas. It just makes sense to manage your spending more closely when inflation is high.

  5. Invest in yourself. You are your best long-term investment. Put some money toward acquiring new skills that can benefit you in the workforce. Maybe there’s a certification you’ve been wanting to get, or there’s a course that could bulk up your resume.

    Putting money toward these things can result in returns down the road if they garner you higher wages or more coveted positions.

You can’t control the economic environment, and that includes the rate of inflation. But you can safeguard your money and maximize its earning potential for you. Put money in your Saving Pods and enjoy earning 4.00% APR on your money. It can put you in a better financial position, helping your money to do well despite inflation.


Pressure Mounts on Fed as Inflation Reaches Highest Rate Since 1981. (April 2022). CNET.

U.S. Inflation Hits New 40-Year High, Jumping 7.9 Percent Over Past Year. (March 2022). PBS.

Inflation Has Arrived. Here’s What You Need to Know. (January 2022). The New York Times.

The Average Stock Market Return Over the Past 10 Years. (January 2021). Business Insider.

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