High-Yield Savings and CDs: Navigating Rising Interest Rates

The Federal Reserve's recent interest rate cuts have led to a decline in high-yield savings account rates, which had been as high as 5% APY. Currently, the best savings rates are around 4.5% to 5% APY, primarily offered by online banks, credit unions, and community banks. Despite the rise in rates since 2021, average savings account rates remain low compared to market investments, making high-yield accounts suitable for short-term savings goals. It's important to research and find competitive offers to maximize savings returns.