As inflation remains high, the Federal Reserve has increased interest rates, making borrowing more expensive but also boosting yields on savings options like high-yield savings accounts and certificates of deposit (CDs). High-yield savings accounts offer significantly higher annual percentage yields (APYs) than traditional savings accounts, with rates ranging from 4.30% to 5.50%, making them ideal for emergency funds or short-term savings. CDs provide a guaranteed rate of return for a set term, which can be beneficial if interest rates decrease, though early withdrawal may incur fees. These savings vehicles offer opportunities for savers to grow their money with less risk in 2023.
QUESTION: How might the increase in interest rates influence your decisions about saving and spending money?
Where you should put your money in 2023
