Higher interest rates globally means you should be seeing much higher yield on your savings accounts, but most Americans are missing out on the opportunity. Fortunately, it’s not too late to capitalize on this rare moment in time by searching the best options available to you right now.
What Are High Interest Savings Accounts?
High interest savings accounts are simple to understand. In a nutshell, they give you more money back on your savings because of higher interest rates. Think of it as your money making more money for you.
High interest savings accounts, also called high yield savings accounts, can earn up to 10 times more in interest than standard savings accounts.1 In a world of rising interest rates, there’s no better time to get to know more about high interest savings accounts.
How Does the Federal Reserve Affect Interest Rates?
So, why are interest rates high right now? It’s connected to what the Federal Reserve does.2 The Federal Reserve, or the Fed as it’s often called, has a powerful tool to fight inflation. It’s been raising something called the federal funds rate, which has a domino effect. When the Fed raises this rate, the interest rate on your savings account usually goes up as well. That’s why we’re seeing high interest savings accounts do so well in 2024.
The Benefits of High Interest Savings Accounts
There’s a reason why everyone’s talking about high interest savings accounts. They offer a big benefit — more money for you. Because of the higher interest rate, your savings can grow faster.
Your money is safe and insured in these accounts. You can rest easy knowing your savings are growing and protected by the Federal Deposit Insurance Corporation (FDIC).3
Learn More About High Interest Savings Accounts Today
If you’re wondering how to make the most of this opportunity, an online search can help you find high interest savings accounts and explore your options. Compare accounts, see what rates are available, and find out how to open one.
Don’t underestimate the power of learning more. By understanding high interest savings accounts, you can make smart choices about where to put your money.