In the past 17 months, the Fed has raised its benchmark rate 11 times in an effort to tamp down on inflation, yields on everything from money market accounts to certificates of deposit (CDs) have increased. Now, you can earn more on your savings—the federal funds rate is between 5.25% and 5.50%—the highest it’s been in more than 20 years.
If you’re looking to take advantage of these high APYs but aren’t keen on locking away your funds for too long, there are many 1-year CDs boasting rates that top 5% if you want to lock in a high yield. Right now, Bread Savings is offering a 5.35% APY on a 1-year CD.
