Here’s where to stash your cash while waiting for the Fed to finally raise interest rates, probably this fall
It has to happen sooner or later.
After months of dithering, it appears the Federal Reserve will actually start to push interest rates higher, ending years of record low returns on bank accounts.
While it could start as soon as July, the Fed seems more likely to initiate this epic change in policy in September or October.
That means you need a suitable place to park your cash until then. It’s especially important if you have a certificate of deposit that matures this summer. Immediately rolling it over into another CD probably isn’t your wisest choice.
Instead, it’s time to take a look at savings and money market accounts. Many of the best paying banks have nudged up rates in recent weeks, and are paying similar rates to what you can earn with a CD.
The best nationally available 12-month CD, from CIT Bank pays 1.25% APY, which is pretty much what you can make with a top-paying savings account.
You certainly don’t want to tie your money up in 2- or 3-year CDs that pay what, a quarter point more?
If interest rates start to take off this fall, you won’t want to be stuck on the sidelines, waiting for your CDs to mature. You’ll want all the cash you can muster, ready and waiting to pounce.
Here’s where to find the best-paying savings accounts that are open to investors across the county:
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