By taking advantage of the generous APYs offered on top-yielding CD accounts, you could grow your savings with almost zero risk. Savings rates on CDs have been on the rise since last year, following the Federal Reserve’s effort to lower inflation through several interest rate hikes. And as interest rates have risen, many banks have begun offering even more competitive yields on savings accounts.
At their most recent meeting, the Fed decided to once again raise rates by a quarter of a point following last month's rate pause. This is the 11th interest rate hike since March 2022, bringing the federal funds rate to the highest level its been in 22 years — a target range of 5.25% to 5.5%. And officials predict that it won't stop there; at least one more rate hike is predicted before the end of the year. In their official statement, the Federal Reserve stated they were "strongly committed to returning inflation to its 2 percent objective."
