![]() ![]() Generally speaking, the federal-funds rate-the Federal Reserve’s benchmark short-term interest rate-is a good yardstick to determine the absolute best savings account rate you might be able to find at any given time. Read on to see where you can find some of the best rates. If you want to get the most from your savings it may be time to start thinking about looking for a new account. ![]() Just how much? A 2022 estimate by our colleagues in The Wall Street Journal newsroom suggested the theoretical figure could be as high as $42 billion a quarter, and top savings rates have climbed since then. The upshot is that Americans are missing out on extra interest-and lots of it. The average savings account still earns just 0.4%, according to the Federal Deposit Insurance Corp. Despite the more generous payouts, many Americans appear not to have noticed. Savings accounts have followed suit, with many top accounts yielding 4%, or even 5%, up from less than 1% as recently as a year ago. But starting last spring, the Federal Reserve began to hike its benchmark federal-funds rate, as part of its effort to get rising prices under control. As inflation accelerated, many savings accounts paid nothing more than nominal interest. Until recently, savers were been in a difficult position. But over roughly the past year, payouts on many accounts have jumped-and if you haven’t thought about where you keep your cash, you may be leaving money on the table. If you’re like most investors, savings accounts probably don’t attract as much attention as stocks or real estate.
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