Stashing cash finally pays off as savings interest rates rise from rock bottom in wake of Fed hikes

Key Facts

As a result, the savings account rates at some of the largest retail banks have been barely above rock bottom since the Covid pandemic crisis began — currently a mere 0.08%, on average.
More from Personal Finance: 4 ways to save money at the pump Strategies to help pay off credit card debt as interest rates rise What people expect to spend more on as inflation surges Last month, the average online savings account rate notched its largest monthly gain since 2017, according to his analysis.
However, because the inflation rate is now higher than all of these rates, any money in savings loses purchasing power over time.
Although there are purchase limits and you can't tap the money for at least one year, you'll score a much better return than a savings account or a one-year CD.