‘It’s a good time to lock in,’ expert says. What to know to get the best rates on your cash now

Persistent inflation is prompting the Federal Reserve to maintain elevated interest rates indefinitely, presenting an advantageous opportunity for cash savers.

Interest rates on investments, such as savings accounts and certificates of deposit, are now at their highest in 15 years, surpassing inflation rates.

Experts like Greg McBride, chief financial analyst at Bankrate, recommend locking in these high rates through investments like CDs, Treasury bills, and Treasury Inflation-Protected Securities (TIPS).

Series I bonds, which protect against inflation, are currently offering a 4.28% interest rate, significantly higher than its previous peak.

Although some investments require locking in funds for a specified period, online high-yield savings accounts offer flexibility and competitive annual percentage yields of 5% or more.

However, 67% of Americans are still earning interest below this threshold.

When deciding between locking in rates or pursuing higher liquidity, consider the timeline of your financial goals.

If you don’t need immediate access to funds, long-term investments may be suitable.

For those with ample cash, diversifying deposits across different investment vehicles can mitigate risk.

However, for individuals with limited savings, high-yield online savings accounts remain the most prudent option.

It’s crucial to ensure all deposits are FDIC-insured (for banks) or NCUA-insured (for credit unions) for maximum protection.

By utilizing these strategies, cash savers can take advantage of the current elevated interest rate environment and earn substantial returns on their investments.