How much will the savings account rate be? Weigh in on the experts

After more than a year Increase in interest ratesSavers are reaping the benefits with fantastic rates on them High Yield Savings Account.

Today’s high-yield savings account rates are already higher than they have been in years — up from about 4% 4.5% APY In many cases. But will they continue to advance higher? recent Consumer Price Index The signs show that Inflation cools down, and the Federal Reserve has not yet clarified whether more rate hikes are in store for this year. Coupled with ongoing concerns about a potential recession and looming US debt default deadlineWe could be in store for additional hikes or the Fed could decide to pause (while still raising interest rates).

Given these various factors, we’ve asked a few experts to share their predictions for how high they’ll be Savings Account Rate Here’s what you should know about what this year could go on and earn high interest on your balance.

Compare today’s top savings rates here to see how much more you could earn.

How much will the savings account rate be?

Savings account interest rates for the rest of the year, experts say, will depend on the Fed’s next move.

“As the Fed changes the federal funds rate, banks will respond and change their interest rates to savers,” said AJ Ayers, CFP, co-founder of Brooklyn FI Financial Advisors.

“The assessment of how appropriate additional policy tightening is going to be an ongoing, meeting-by-meeting,” Fed Chairman Jerome Powell After the most recent rate hike, June’s Fed meeting signaled another rate hike — or the Fed could be ready to take a break, depending on economic indicators seen in the coming weeks. Banks, in turn, will respond to that decision in the case of savings accounts.

“It will all come down to the Fed’s decision, since these rates are loosely tied to central bank policy,” said Max Pashman, CFP, founder of Pashman Financial. “Markets now seem to believe the Fed wants to stop raising rates, so it could be as high as it is. All the more reason to keep an eye on it.”

High Yield Savings Account Online banks would be the place to look for any growth.

“These accounts are earning 3.5% to 4.5% interest right now, and will increase as interest rates rise,” says Brandon Amaral, CFP, founder and financial planner at Amaral Financial Planning. “At the rate of growth, I can see high-yield savings accounts reaching 4.5% to 5% interest.”

Some accounts are already close to that number – there are some high-yield savings accounts that offer 4.5% or more today, and even Up to 4.85% APY.

Explore the top savings account rates available now to find the right high-yield account for you

Why you should open a high yield account now

One thing is for sure: saving money today can put you in a good position, regardless of the economic uncertainty ahead. Even if there are more rate hikes from the Fed, Now is an ideal time to start saving.

For one, rates are already high. Many of the best high-yield savings accounts offer 4% or more, some 4.5% and even more. If you start saving at that rate today, you could earn hundreds of dollars in extra interest within a year.

Say, for example, you have $3,000 to save right now. If you put it in a savings account earning 4% APY, you could earn $120 in interest and increase your balance to $3,120 by this time next year. Of course, those earnings can be even higher if you decide to make additional contributions during that time.

In addition, High-yield savings accounts carry variable interest rates. As such is different with other savings vehicles CD, you are not locked into the rate you earn when you open your account. If interest rates continue to rise across the board, it’s likely that the account you chose will adjust and move up.

Of course, this means that when the time comes for the Fed to cut interest rates, the interest you earn will likely decrease. Opening a competitive savings account now can help you maximize today’s high rates for as long as possible and get the biggest boost to your principal balance.

Bottom line

Savings account rates have already been raised, but some experts say they could go even higher. The Fed’s next rate decision – set for mid-June – will determine whether some banks decide to raise their rates again or whether we reach a peak.

whatever, Now is a great time to start saving. By opening a high-yield savings account with a variable rate sooner rather than later, you can set yourself up to benefit from higher yields for as long as possible.

Explore the best savings account options today and start earning more from your savings!