00:00So, at its January meeting, the Fed announced that it would not be doing anything with interest
00:05rates right now.
00:06Here's what that means for your savings account.
00:07In 2024, we saw the Fed cut interest rates several times, which also had an immediate
00:14impact on savings accounts.
00:16You also started to see those interest rates fall.
00:19Right now, we know that the Fed is going to hold steady, but in terms of saving, it's
00:22always great to save and you still have options for increasing your savings rate.
00:27One would be a high-yield savings account.
00:30Right now, regular bank savings accounts, they're averaging .42%, which is really low.
00:36But if you look at a high-yield savings account, all of them are averaging at 4%.
00:42This is a great way to save money, earn a higher interest rate, and it is great for
00:47short-term saving.
00:49Your next option would be your Certificate of Deposit, commonly known as a CD.
00:54This is where you actually get to lock in the interest rate, and they're all averaging
00:59over 4%.
01:01With a CD, even though you lock in that rate, if you withdraw the money early, there's going
01:07to be a penalty.
01:08It is not for money that you might need immediately.
01:11This is not for your vacation fund, your emergency fund.
01:15This is something that you know that you can sock away for a year, set it and forget it,
01:21and just let it earn that higher interest rate.
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