After the Fed’s latest move, interest rates are higher. It hiked its benchmark interest rate for eight times in a row since March last year. You might have a problem with your bank savings in which it is not getting a higher rate. Actually, there is something you can do instead of just staying in a big-name bank earning. You could actually get a better move by having an online bank’s high-yield savings account. Basically, there are also many other ways you can benefit from rising rates. Plus, you can also protect yourself from other additional costs.
Liquid savings are your emergency expenses or shorter-term goals such as vacation funds or down payment. When the rates are higher, you could earn some money after earning practically nothing from the previous years. Here is the reason from a chief financial analyst at Bankrate, Greg McBride.
It is the best time for savers as the rates are still rising and inflation is declining. Longer-term CDs are peaking currently. You can find one of the top-yielding savings accounts. These could pull more than 4% and continue to rise. Apparently, the recent online high-yield savings accounts offer higher rates which is 4.35%. This is actually higher than the national savings account average. Bankrate said it was as on January 25 that was paltry 0.23%.
McBride even added that there are also some federally insured one-year CDs among the highest-yielding CDs. Then, the rate for these one-year CDs is as much as 4.85%, this is actually higher than the national average covering 1.47%. However, make sure that when you switch to an online bank or credit union, make sure that they are insured federally.