Why you should open a high-yield savings account before the next Fed rate hike

A welcome follow A pause in interest rate hikes in June – The Federal Reserve’s first pause until March 2022 – It seems that interest rates will move upwards Later this month.

Minutes from last month’s meeting show some officials were in favor of raising the rate by a quarter of a percent. Although the 11 voting members of the Fed’s interest-rate-setting committee finally agreed to a pause during their June 13-14 meeting, they are unlikely to leave rates untouched again when they meet again later this month. In fact, signs are strong that they will raise rates at least twice in 2023, likely starting in July.

While higher interest rates make borrowing more expensive with everything from mortgages to credit cards, there’s a silver lining: the returns savers can get with them. savings And Certificate of Deposit (CD) account. High-yield savings accounts, in particular, have experienced significantly higher returns than those associated with regular savings accounts. To start earning more money through these types of accounts, savers should strongly consider opening one in today’s high-rate climate.

Start exploring your high-yield savings account options here now to see how much more money you can earn.

Why you should open a high-yield savings account now

Interest rates on high-yield savings accounts Variable and tied to the federal funds rate. dislike Interest rate on CDswhich is locked for complete duration CD’s, Interest rates on high yield savings accounts liable to change. That said, high-yield savings account rates are currently higher than they have been in years with some online account offerings. 4.5% APY or higher.

By opening a high-yield savings account today, savers will be able to start earning more interest on their savings now. Savers will enjoy a rare win-win by opening a high-yield savings account now. They will earn more interest on their current savings and they will be ready to take advantage of any additional rate hikes that may arrive after July.

So start exploring your high-yield savings account options online now and start earning more today!

Learn about other high-yield savings account benefits

While a high interest rate is the primary selling point with a high-yield savings account, there are other attractive benefits savers should be aware of as well.

Accessibility and familiarity

There are no complications associated with opening and banking with a high-yield savings account. Because these accounts work like regular savings accounts, with higher interest rates. You will be able to deposit, withdraw and transfer money just like a regular savings account. Some online banking institutions may even provide a debit card for you to use. So if you’re worried about learning the inner workings of a new type of account, don’t worry—a high-yield savings account will be easily accessible and familiar to you.

No fees and penalties

Have you ever worked to build your savings account only to have exorbitant fees and penalties diminish the bottom line anyway? luckily, Many high-yield savings accounts don’t have things like minimum balance requirements or withdrawal limits. This gives you more freedom to bank as you wish without having to worry about depleting your money to pay bank fees and penalties Just remember that no per High-yield savings accounts come without these discounts, so you may need to do some minimal research to find the best one for you. Explore your high-yield savings account options now here or through the table below.

Bottom line

Increased interest rates are not great for borrowers but good news for savers. With the Federal Reserve expected to hike rates again later this month, now is a great time to take advantage by opening a high-yield savings account. You won’t be able to make more money on your existing income right away, but you’ll be ready to earn more when the Fed adjusts rates upward. Plus, the accessibility and familiarity of high-yield savings accounts and the fees and penalties they don’t charge, make it a smart move to do now.

Get started with a high-yield savings account today and start earning more interest!