Experts Favor High-Yield Savings Over Money Markets as Fed Hike Odds Reach 45%
Updated
Updated · CBS New York · Aug 19
Experts Favor High-Yield Savings Over Money Markets as Fed Hike Odds Reach 45%
3 articles · Updated · CBS New York · Aug 19
Summary
CME FedWatch shows about a 30% chance of a Federal Reserve rate hike in September and nearly 45% in October, prompting savers to weigh which accounts would benefit most.
High-yield savings accounts generally offer slightly better rates than money market accounts, experts said, making them the stronger choice for savers seeking the biggest lift from any Fed increase.
Money market accounts still may suit people who need frequent access to cash, since they often allow more transactions and can include debit cards or checks.
Minimum balance requirements and fees can make money market accounts less attractive, while CDs and CD ladders offer another way to lock in yields if rates keep rising.
Experts said savers should move cash into competitive accounts now rather than wait for a Fed decision, then monitor rates if the central bank acts.