If you have a lot of high-interest debt, the fact that the Federal Reserve once again didn't cut interest rates at its meeting on Wednesday may be disappointing, if not surprising.
But if you have savings, the Federal Reserve's unwillingness to lower rates until it sees more consistent progress in inflation data has – and will continue to – put money in your pocket this year if you look for federally insured accounts with the highest rates.
In 2023, savers earned $315.4 billion in interest on deposit accounts, four times the $78.7 billion they earned in 2022, according to Lending Tree's DepositAccounts.com, which used data from the Federal Deposit Insurance Corporation in its calculations.
That's because, after so many years of negligible interest rates, the Federal Reserve's rate-hiking campaign that began in 2022 made it possible for savers to earn above-inflation returns on their domestic U.S. deposits. , including bank and credit union savings accounts, certificates of deposit. and money market accounts.
At the same time, Treasury bond yields have also been very competitive with the higher rates offered by banks and are equally low risk.
Read more here about how to increase your savings while growth is good.
