January 20, 2023

Across the board, Americans are continuing to adjust to the ongoing impacts of inflation. The current inflation rate in the U.S. is at the highest it’s been since 1980, when that rate reached 14.4%. Although many people are tightening their belts financially, this could be an opportunity to set aside funds for the future if you can afford to continue without tapping into major savings sources. When was the last time you looked at your APY rate with your money market or savings accounts? There’s reason to think about making some moves in 2023. 

In 2023, the Federal Reserve raised rates at the fastest pace they did in the previous four decades. In 2022, top-yielding money, market rates, and savings accounts could hit as high as 5.5% APY throughout 2023. That’s the highest level since 2007 for nationally available accounts.

Although these higher yields are overall a benefit for those who are saving significant portions of their income or setting aside substantial one-time windfalls, such as profits from a home sale or an inheritance, it is also essential to think about how you’re contending with inflation in your overall strategy. The rising inflation was the primary reason that the Federal Reserve raised rates to begin with in 2022. 

The highest-yielding money market and savings accounts started at 0.55 APY. Right now, those banks with the highest yields are competing for your money. Bear in mind that it’s well worth doing some research if you have substantial funds to set aside, and that you should also work with your financial professional to talk about the best way to allocate these funds throughout savings, investing, and for other financial needs.