Cash Is Paying More Again — Does That Change How Much Belongs in Savings?

Cash can earn more as short-term rates rise, but a higher savings yield does not automatically mean households need a larger emergency fund – Shutterstock

Cash just became a little more interesting.

The Federal Reserve raised its target federal funds rate by a quarter percentage point on September 16, moving the range to 3.75% to 4%. Short-term rates responded, and Treasury bills continued to offer yields that make idle cash harder to dismiss.