Inflation is staying high, so the Federal Reserve may not lower interest rates soon. This is good news for people with cash to save, as they can now earn higher returns on their money. Treasury bonds, Series I bonds, and high-yield savings accounts are great options for locking in high rates. Just be sure to consider when you might need the money and spread your deposits across different accounts to minimize risk.
Interest rates for credit cards, savings accounts, and mortgages remain elevated despite the Federal Reserve holding off on rate cuts. Credit card rates could stay high for the rest of 2024, while savings accounts continue to offer competitive interest rates but may moderate slightly over time. Mortgage rates, on the other hand, could decline to around 6% by year-end, potentially easing the tight housing market.
