economy
3 savings accounts that are outpacing inflation to consider now
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TL;DR
- Inflation is cooling but still above the Federal Reserve's 2% target.
- Traditional savings accounts offer very low interest rates (0.38%), causing money to lose value against inflation.
- High-yield savings accounts offer rates above 4%, outpacing inflation.
- Money market accounts offer rates around 3.90%, also outperforming inflation, with added check-writing features.
- Certificates of Deposit (CDs) offer fixed rates as high as 4.25%-4.40%, providing certainty but requiring funds to be locked until maturity.
- It is recommended to open these accounts soon to benefit from current elevated rates before potential future rate cuts.
- Online marketplaces can help find and compare accounts, rates, and terms.