2023 Savings Rates Outlook
2023 Savings Rates Outlook
How Rising Interest Rates Can Benefit Savers

In an effort to combat inflation, the Federal Reserve has been steadily increasing interest rates. While this may seem like a negative for consumers, there is actually a silver lining—rising interest rates can benefit savers. As the federal funds rate increases, interest rates on high-yield savings accounts and CDs typically follow suit, offering a higher annual percentage yield (APY) on deposits.
At the most recent meeting, the Federal Reserve decided to raise interest rates by 0.25%, bringing the federal funds rate to a target range of 5.25% to 5.5%. This hike reflects the Fed’s commitment to returning inflation to its 2 percent objective. Experts predict that there may be at least one more rate hike before the end of the year, which could push savings rates even higher.
How to Find the Best Savings Rates
To take advantage of the best APYs, it’s important to know how to find the best savings rates. Here are some tips:
Compare High-Yield Rates Online
Online banks typically offer more generous APYs on savings accounts compared to traditional brick-and-mortar banks. Banking online could help you secure the best savings rate possible. Consider changing from your traditional savings account to an online one to maximize your earnings.
Avoid Teaser Rates and Tiered Interest Rates
Teaser rates are promotional rates that banks use to attract new customers. However, these rates are often short-lived. Tiered interest rates pay different yields based on the balance in your account, which may not be ideal if you plan on using your savings at some point. Opting for an account with a flat APY is likely a better choice.
- Essential Travel Requirements for Europe in 2024
- Rising Mortgage Rates and Payments Cause Market Misery
- 6 Stock Splits to Watch
Take Into Account Any Fees
While high-yield savings accounts offer higher than average APY on deposits, it’s important to consider any associated fees or balance requirements. Some accounts may have hidden costs that could potentially decrease their overall value. Be sure to carefully evaluate these factors to find the best option for you.
To make your search for the best savings rates easier, we’ve partnered with Bankrate to provide a comparison tool that helps you find the best rates available now.
Top Earning High-Yield Accounts for July 2023
Here are some of the best earning high-yield accounts for July 2023:
Bank | APY | Minimum Opening Deposit | Monthly Fee |
---|---|---|---|
UFB Direct | 5.06% | $0 | No |
Popular Direct | 5.05% | $100 | No |
Bask Bank | 4.85% | $0 | No |
CIT Bank | 4.95% | $100 | No |
Synchrony | 4.50% | $0 | No |
Citizens | 4.50% | $0.01 | No |
These accounts offer competitive APYs with no minimum opening deposit or monthly fees.
Related Content
- How to Open a Savings Account Online
- Keep Your Savings Safe
- Fed Raises Interest Rates Yet Again: What the Experts Are Saying
- What Rising Interest Rates Mean for You
- Switch Accounts for a Better Yield?
With the right strategy and knowledge, rising interest rates can be an opportunity for savers to earn more from their savings. By comparing high-yield rates online, avoiding teaser rates and tiered interest rates, and taking into account any associated fees, you can find the best savings rates for your financial goals. Don’t miss out on the potential benefits—act now to lock in the best APYs.