As Fed Keeps Rates Steady, Savings Rate Growth Slows

Some experts say now would be a good time to lock in a much better savings rate on your accounts.

(Image credit: Getty)

The Federal Reserve opted to hold interest rates steady at its most recent policy-setting meeting in January, keeping the federal funds rate at a target range of 5.25% to 5.50%. As interest rates remain steady, future savings rates for high-yield savings accounts may or may not increase. Although a Fed increase would have helped to push rates higher, tighter lending policies may have the same effect.  

“Savers have another good year in which their returns will shine, with inflation expected to decline further,” said Greg McBride, CFA, Bankrate’s chief financial analyst in response to the Fed meeting. He predicts two Fed rate cuts in 2024, yet he says CD yields will continue to top inflation.

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.